The problems that for months have plagued subprime auto lenders- unexpected losses, rising provisions, the inability to recover on bad loans-are starting to migrate to auto financiers whose customers have better credit.

Last Friday, Union Acceptance Corp., an auto lender catering to "prime" consumers, disclosed it would suffer a loss of up to $11 million in the quarter ending June 30 and said it was increasing loss reserves.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.