Santander Drive Auto Receivables Trust 2024-2 Annual Report - How They Did This Year

I’ve put together this guide to help you understand how this investment performed over the past year. Instead of digging through dense legal filings, I’ve broken down the key points so you can see the big picture.

1. What does this trust do?

Think of this "Trust" as a financial pass-through. It doesn't build cars or run dealerships. Instead, it holds a pool of auto loans from Santander Consumer USA. The SDART 2024-2 deal, which closed in May 2024, holds about $1.25 billion in subprime auto loans. You invest by buying asset-backed securities. As car buyers pay off their loans, you receive monthly interest and principal payments. The trust keeps these loans separate from Santander’s own finances.

2. Financial Performance

Because this is a specialized trust, it doesn't report "profit" like a typical company. Instead, we measure its health by how well the car buyers pay their loans using the Net Loss Rate and the Delinquency Rate.

The Trust currently holds a "credit enhancement" buffer of 15% to 20%. This includes extra cash and junior notes that absorb losses if borrowers default. Auditors and the servicer, Santander Consumer USA, confirm they are following all agreements. All monthly payments to Class A, B, C, and D investors were made in full and on time.

3. Major Wins and Challenges

• The Win: The Trust is running smoothly. The servicer is successfully recovering money from repossessed vehicles, which helps offset losses. The cash distribution process—how money flows to you—is working exactly as planned.
• The Challenge: There is a legal issue involving the trustee, Wilmington Trust (WTNA). In February 2026, investors sued WTNA regarding their role in other deals. While this lawsuit doesn't involve your specific trust, WTNA is your trustee. If they face major legal trouble or need to be replaced, it could cause administrative headaches or extra costs.

4. Key Risks

The biggest risk is "default risk"—the chance that subprime borrowers stop paying. If losses exceed the expected 8%–12% range, the safety buffer will shrink faster than planned. This could hurt the repayment of lower-rated (Class D) notes.

The legal situation with the trustee also adds uncertainty. Finally, keep an eye on the economy. A downturn could increase unemployment, leading to more loan defaults. While your notes have fixed interest rates, the underlying loans are sensitive to the broader economy.

5. Future Outlook

The Trust is in a "steady state." It won't launch new products or change strategies. Its only job is to collect payments on existing loans until they are paid off, usually within 4 to 5 years. As the pool shrinks, your safety buffer naturally grows, offering more protection to remaining investors. You won't need to vote on any issues. It is a "set it and forget it" investment that will pay you monthly until the loans are gone.

Investor Tip: If you are considering this investment, focus on the "credit enhancement" buffer. As long as that buffer remains in the 15%–20% range, the trust is well-positioned to absorb the typical losses associated with subprime auto loans. If you prefer low-maintenance income, the predictable, monthly nature of these payments makes this a straightforward "buy and hold" asset.