Rising used car prices are positive for auto ABS transactions with exposure to residual values (RVs). Indeed, opportunities could emerge for deals with RV risk to outperform rating agency assumptions, which could – in turn – lead to rating upgrades.
Car values usually start depreciating as soon as they leave forecourts, but figures from Auto Trader - an automotive advertising business - show that used car prices in the UK have increased by 8.8%
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