Prime and near-prime auto loan approvals last month reached levels not seen since March 2008, according to CNW Research. Subprime approvals also showed gains, but approvals for the segment are still rebounding after dropping to record lows in November and December.
The Bandon, Ore.-based firm found that 90.24 percent of prime applications (750+), which includes leasing, were approved in March, the highest point since March 2008. For finance only, 88.31 percent of prime applications were approved, the highest point in two years.
As for near-prime (620-749), 84.63 percent of applications were approved, the highest point since March 2008. As for finance only, 79.57 percent of applications were approved, the highest point in two years.
In the subprime category (620 and below), 13.82 percent of applications were approved, continuing a four-month upswing since approvals hit a record low (10.06 percent) in December. Additionally, approvals for this credit tier remains at its lowest point since CNW began recording auto loan approvals in January 2002.
As for finance only, 9.52 percent of subprime applications received approvals, which is the highest point in more than two years.