Subprime Auto Giant’s Loans Souring at Fastest Clip Since 2008

A growing percentage of Santander Consumer USA Holdings Inc.’s subprime auto loans are turning out to be clunkers soon after the cars are driven off the lot.

Some loans made last year are souring at the fastest rate since 2008, with more consumers than usual defaulting within the first few months of borrowing, according to analysts at Moody’s Investors Service. Many of those loans were packaged into bonds.

The rapid failures of subprime auto loans made by Sandander: Bloomberg TV report.

Source: Bloomberg

Santander Consumer is one of the largest subprime auto lenders in the market. The rapid failure of some of its loans implies that a growing number of borrowers may ...