July 2024 Dealertrack CAI Report: Decline in Auto Credit Availability and Its Impact on the Industry

The July 2024 Dealertrack CAI report highlights a significant decline in credit availability within the auto industry, impacting dealership operations and customer financing options. The All-Loans index continued to decrease to 92.9 in July down 1.5% on the year. This reduction is attributed to tightening credit standards and increased borrowing costs, which are making it more challenging for consumers to secure auto loans. As a result, dealerships may face slower sales and pressure to adjust their financing strategies. Tightening of credit availability underscores the need for industry stakeholders to navigate these changes by exploring alternative financing solutions and adapting to shifting market conditions.