The increasing cost of living, coupled with a growing unemployment rate, could lead to serviceability pressure for some borrowers with vehicle loans and leases, said Fitch Ratings on the release of its Dinkum ABS Index for the June 2014 quarter. The index shows an eight basis points increase in securitised auto loan delinquencies over the first quarter to 1.14 per cent of the total value of loans outstanding.Fitch said six bps of the increase was in delinquencies greater than 60 days. However, over the quarter the annualised net loss rate dropped 2 bps to 0.46 per cent but the recovery rate fell slightly to 45.4 per cent.Fortunately for future recoveries, the Japan-Australia free trade agreement retains the A$12,000 import duty on used vehicles, which will support the resale value of used cars, observed Fitch.Later in the week Moody's Investor Service came out with its own analysis of auto loan backed ABS for the second quarter of the year and concluded that delinquencies were stable over the period.Delinquencies of more than 30 days increased marginally to 1.1 per cent at the end of the June quarter from 1.0 per cent at the end of March 2014, while year to date monthly 30-plus days delinquencies average 1 per cent, unchanged from the average seen in 2013, said Moody's.