Every Auto Finance Company has “bad debt” [losses after recovery of security]. In truth a significant sector of the industry (subprime lending) is experiencing resurging defaults [8-9%] [https://www.bloomberg.com/news/articles/2017-07-17/new-u-s-subprime-boom-same-old-sins-auto-defaults-are-soaring] [http://www.businessinsider.com/fitch-on-auto-loan-market-2017-3] [https://qz.com/913093/car-loans-in-the-us-have-hit-record-levels-and-delinquencies-are-rising-fast-too/] ** Sig