As the majority of Fitch-rated European auto loan or lease transactions tend to include a limited percentage of gas guzzling luxury cars and SUVs, Fitch does not expect RV risk to face the same experience as in the U.S.

At the moment, used car prices have not demonstrated any material changes. However, RV risk in European structured-finance transactions may be impacted by increased pressure as reflected in the lower vehicle registrations in the new car segment across Europe.

RV risk remains heavily dependent on developments in the used car market as well as the cost of ownership, image, quality and reliability. Design will remain a pivotal element in the purchasing decision.