Though still behind last year, access to credit improved for auto consumers in August.
According to new data from Cox Automotive’s Dealertrack Credit Availability Index, access to credit hit a high point for the year last month at 99.1.
“The all-loans index increased 1.8 percent to 99.1 in August, the highest reading since November 2022,” Cox Automotive reported in the news release.
Credit is still 2.8 percent behind last year. Used vehicle loans are 5.1 percent behind last year. Independent used loans are down 3.2 percent.
The average loan rate increased in August by 32 basis points.
The subprime share of loans increased from 10.4 percent to 11 percent. The subprime share was at 10.5 percent in June.
“Yield spreads narrowed, subprime share increased, and negative equity share increased, and those moves improved credit access for consumers,” Cox Automotive reported. “However, average terms lengthened, down payments declined, and approval rates fell, and those moves hurt credit access for consumers.”
The amount of loans with 72-month terms dropped by 0.8 percent in August. They are down 2.3 points in the past year.
