Auto Credit Improves

According to Cox Automotive’s latest credit barometer reading, August auto loan available improved.  All loan channels except for new-vehicle loans saw loosened availability but were tighter year-over-year.  Cox’s All-Loans index rose to 99.1, the highest level since November 2022.

Cox said that the negative-equity and subprime shares of auto loans grew, combined with narrowing yield spreads that increased consumer credit access.  However, average terms grew while down payments and approval rates fell.

Credit access remains flat compared to February 2020 levels, but access remains harder than before the pandemic.