Auto Credit Shrinks to 2-Year Low

In May, Cox Automotive reported that automotive credit availability was at its tightest in more than two years.  Cox’s All-Loans index fell to 96.4, the lowest result since February 2021 as credit access fell 8% year-over-year and 2.8% lower than February 2020 results.

Cox also noted that down payments fell and the average loan terms grew longer.  Additionally, consumer credit access was limited as the subprime and negative-equity shares declined.  Cox reported that most loan channels’ credit availability fell in May, especially credit availability for certified preowned loans.  May’s approval rate was flat month-over-month but fell 2.4 percentage points year-over-year.