The latest monthly index from Fitch Ratings indicated delinquencies and losses fell again for both U.S. prime and subprime auto ABS last month, though analysts noted losses are still higher year-over-year.

Fitch reported that subprime 60-day delinquencies declined 11 percent month-over-month to 3.70 percent in April. But they were 15 percent higher versus a year earlier. Annualized net losses stood at 7.41 percent last month — 14 percent improved over March but 33 percent above the same month in 2015.

In the prime sector, 60-day delinquencies ended up unchanged in April versus March at 0.34 percent. However they climbed 21 percent above April of last year. Annualized net losses in the prime space recorded a 29-percent decline down to 0.45 percent in April versus 0.63 percent in March. Fitch pointed out April’s loss rate was comfortably below the 10-year average of 0.80 percent, but was still 17 percent higher year-over-year.

“Tax refunds appear to be flat year-over-year but continue to support improved auto ABS performance, as is typical for this time of the year,” Fitch said. “That said, monthly improvements last month slowed relative to the prior three years.

“Overall, this is a sign that the strong performance from late 2010 through early 2015 is behind us,” the firm added.

Fitch mentioned used-vehicle values continue to show signs of softening in 2016 but still are “healthy” on a historical basis. The Manheim Used Vehicle Value Index settled at 122.8 in April, virtually unchanged versus March.

Manheim noted vehicle values were slightly down on a yearly basis by 1.1 percent. The index ranged from a low of 123.8-125.7 in 2015 and averaged 124.7, so April's figure is marginally lower.

Fitch also noticed that low oil prices are boosting the demand and sales of larger trucks and SUVs, and are also helping to bolster wholesale vehicle prices over the past year.

According to ADESA Analytical Services, wholesale truck values were nearly 6 percent stronger in April on an annual basis, led by mid- and full-size SUV/CUVs up 8.5 percent follow by full-size vans and minivans. Smaller vehicle classes remain down by 3.6 percent on an annual basis, as consumers shy away from this segment due to the low gas price environment.

“Despite the gradual increase in losses over the past year, Fitch continues to issue positive rating actions in 2016. Through mid-May, Fitch issued 34 upgrades, which was in line with the first five months of 2015.

Fitch’s auto ABS indices track the performance of $92.3 billion of outstanding collateral, of which 60 percent is backed by prime collateral and the remaining 40 percent subprime. The indices include transactions rated by Fitch as well as non-rated issuer platforms.