Auto Credit Harder To Get

Cox Automotive reported that access to automotive credit waned in April for all auto loan types.  Cox’s All-Loans Index fell 1.5% in April to its lowest level since February 2021.  Availability was reported 8.5% tighter year-over-year and 2.4% tighter than two years earlier.

Cox also reported that average credit terms lengthened in April and that down payments decreased.  Approval rate, subprime, and negative equity shares decreases hurt consumer credit access.

The share of loans with terms greater than 72 months increased 0.8 percentage points, but it fell 0.4 percentage points year-over-year.