Auto Credit Becomes More Accessible

Cox Automotive reported that auto credit became more accessible in October across all channels and most lender types. Cox stated that October was the third month in a row of improvement, though credit remains less accessible than it was in October 2022 and tighter than before the pandemic.

The consumer credit scene is experiencing mixed patterns as the number of subprime equity shares of auto loans rose and the average loan terms lengthened, all of which increased consumer access.  However, the approval rate decreased and down payments grew, limiting consumer credit access.

In October, Cox highlighted that the average loan rate increased by 16 basis points month-over-month and that approval rates were down 1.2 percentage points year-over-year, falling to its lowest level since November 2020.