Auto ABS

The subprime auto lender has a good track record, but there are concerns about used-car prices normalizing, according to KBRA.

The most profitable and largest used-car retailer has had more than a dozen ABS in the last four years.

KBRA says the Southern subprime used-vehicle retailer’s experience brings credibility to the space

Proceeds from the deal will purchase the loan assets and fund the reserve account.

Lendbuzz closed a new $100 million committed warehouse facility, with a 12-month revolving period, and will bring its total warehouse capacity to $400 million.

Sport utility vehicles (SUVs) represent 26.6%—and 26.7% if upsized—of the deal’s underlying portfolio, compared with 13.0% from the 2022-1 securitization.

CRVNA 2022-P1 has a collateral pool with annual gross excess spread of 3.41%, compared 5.6% with from the 2021-P4 deal, due to the lower collateral interest rate.

Underpinning the notes are two special units of beneficial interest in leases owned by an origination trust, issuer’s rights under any letters of credit.

The current state of the car market, which is sending sales and prices of used cars spiking, could pose a credit challenge to the notes.

The deal is secured by loans on new and used vehicles and that largely follows the structure of recent transactions, particularly the 2021-C.