Performance Report: Consumer Unsecured and Subprime Auto, March 2025

The March 2025 data is now available, and credit performance across consumer segments remains resilient, with Consumer Unsecured continuing its strong run and Subprime Auto rebounding in line with seasonal expectations.

Quick Insights

Consumer Unsecured

• Impairments: 30+ Impairments declined 11 bps MoM, outperforming seasonal expectations by nearly 2x. Notably, First-Time Impairments remained below pre-COVID levels for the second consecutive month.

• Cures & Payments: Both Cure and Made Payment rates reached record highs, aided in part by recovery trends following the California wildfires.

• Net Charge-Offs: Continued improvement, with the YoY rate of change remaining below -20 bps for the ninth consecutive month, the strongest streak since 2021.

• Vintage Analysis: The 2023 and 2024 vintages are tracking closer to or better than pre-COVID trends, with top-grade ROI performance exceeding earlier cohorts by over 250 bps.

Subprime Auto

• Impairments: March marked the strongest month of the year, with 30+ Impairments down 115 bps MoM. First-Time Impairments hit their lowest level since 2021, reinforcing that current weakness is concentrated among previously delinquent borrowers.

• Charge-Offs: Performance modestly exceeded seasonal norms, though loss severity remains elevated, suggesting higher liquidation costs among defaulted borrowers.

• LTV Differentiation: Loans with LTVs below 95% continue to materially outperform, reflecting stronger borrower incentives and lower credit risk.