Fitch Ratings determined delinquencies on prime U.S. auto loan ABS reached another record low in April, with the subprime sector posting a strong improvement, too.

Analysts indicated the movements mean that asset performance is positioned for a strong summer.

According to the latest monthly results from Fitch, auto loan ABS losses and delinquencies declined in April “due largely to lower unemployment and healthy used-vehicle values over the past couple of months.”

Fitch expects prime and subprime auto loan ABS asset performance to remain stable during the summer.

“Though losses for both prime and subprime auto loans will creep higher, they will stay comfortably within range of levels exhibited during the strong 2005-2006 period,” analysts said.

Fitch’s prime 60-day delinquency index hit a new record low of 0.28 percent in April, down 10 percent from March and 3.4 percent below April of last year. The prior record low was 0.29 percent in spring last year.

Analysts noted prime annualized net losses recorded the second month of double-digit improvement, hitting 0.22 percent in April, the lowest level since June of last year and 29 percent lower than March. The rate also was 8.3 percent better than in April of last year.

In step with the prime sector, Fitch noticed subprime 60-day delinquencies sank 10 percent to 2.51 percent, a 6-percent improvement over the same period a year ago. The April rate was the lowest level since April 2012 when it settled at 2.33 percent.

Analysts mentioned subprime annualized net losses came in at 3.89 percent in April, down 22 percent from March and marking a 5-percent improvement from a year earlier.

Fitch tabulated the U.S. added 288,000 jobs in April “picking up steam following the cold winter months which were a drag on economic output and growth.” The U.S. unemployment rate dropped to 6.3 percent in April down from 6.7 percent in March. The rate was the lowest level since September 2008.

Used-vehicle values rose 5 percent year-over-year in April, notching the fourth consecutive month of improvement as recorded by the Manheim Used Vehicle Value Index.

“Fitch does expect used vehicle values to soften in the remaining months of 2014 with increased off-lease volumes coming into the market, among other factors, and recovery rates should moderate but still be strong overall,” analysts said.

Fitch upgraded 34 classes of auto loan ABS notes through May of this year, versus the 18 issued during the same period in 2013. Of these 34 upgrades, 21 subordinate note upgrades were issued on prime auto loan ABS transactions and the remaining 13 were on subprime transactions.

“The rating outlook remains positive for the remainder of 2014,” analysts said.