Exeter Automobile Receivables Trust 2022-2 Annual Report - How They Did This Year

This guide explains how the Exeter Automobile Receivables Trust 2022-2 performed over the past year.

Unlike a typical company, this trust is a financial "bucket" holding a pool of car loans. Investors buy into this trust to collect a share of the interest and principal payments made by the people who took out those loans.

1. What does this trust do and how did it perform?

Created in June 2022, this trust manages a pool of subprime auto loans that started at $1.0 billion. Its job is to collect monthly payments and pass them to investors holding Class A, B, C, and D notes. Exeter Finance LLC manages the loans, while Citibank acts as the trustee. Auditors confirmed that Exeter Finance maintained strong internal controls over its operations throughout 2026.

2. Financial performance

As of early 2026, the trust has paid down a large portion of the original $1.0 billion pool. The trust generated about $18.4 million in monthly collections. It paid investors on schedule, fully retiring the Class A-1 and A-2 notes. The remaining loans have an average interest rate of 18.5%, which provides enough income to pay investors.

3. Major wins and challenges

The trust is stable and operating as planned. In August 2025, Exeter Finance signed an agreement to inject cash into the trust if needed. This "safety net" keeps the reserve account at its required $10 million level. Even with a cumulative loss rate of 12.5%, the trust has enough cash to pay senior investors.

4. Financial health

The trust is well-diversified with over 45,000 individual loans, meaning no single borrower poses a major risk. The average loan balance is about $16,500. The trust pays senior investors first, which provides a layer of protection. Exeter Finance’s commitment to adding cash helps prevent issues that would otherwise stop payments to investors.

5. Key risks

The main risk is the credit quality of subprime borrowers. With an average starting credit score of 615, the portfolio is sensitive to the economy. If unemployment rises, losses could exceed the expected 15-18% lifetime range. Additionally, the Consumer Financial Protection Bureau oversees Exeter Finance, and any new regulations or fines could impact the company’s ability to collect payments.

6. Competitive positioning

The trust is performing in line with the broader subprime auto market. Delinquency rates for loans 60 days or more past due are between 3.5% and 4.2%. Because these loans are riskier, they offer higher interest payments, which remain attractive to institutional investors.

7. Leadership and strategy

Management remains unchanged, and the trust continues to follow the original 2022 agreement. Exeter Finance CEO Jason Kulas confirmed in the 2026 report that the company met all its obligations and regulatory requirements.

8. Future outlook

The trust is in "maintenance mode," collecting payments until the loans are paid off, likely by late 2027 or early 2028. As the pool shrinks, the gap between the value of the loans and the debt grows, offering more safety for remaining investors.

9. Market trends

Used car values have dropped 8-10% this year, which increases losses when cars are repossessed. While regulators are watching subprime lenders closely, this trust was built to meet these standards from the start.

Investor Takeaway: This trust is currently functioning as a steady, predictable income stream. Because it is in "maintenance mode," the primary focus for investors is the continued stability of the underlying loan pool and the ongoing support from Exeter Finance. If you are looking for a high-yield asset backed by a diversified pool of loans, the current performance suggests the trust is meeting its payment obligations as expected.