Auto credit loosened in October, the third month of improvement in a row, though it was still less accessible than a year ago and tighter than before the pandemic in some channels, Cox Automotive said.

Loan accessibility improved in all channels and most lender types, Cox said.

Competing patterns balanced out the consumer credit picture. The subprime and negative-equity shares of auto loans rose, and average terms got longer, all increasing consumer access. Meanwhile, the approval rate shrank and down payment amounts increased, limiting access.

• The approval rate fell to its lowest since November 2020, down 1.2 percentage points year-over-year.

• The share of loans with terms longer than 72 months rose by four basis points, though it fell 1.8 percentage points year-over-year.

• The average loan rate increased by 16 basis points month-over-month.

Year-over-year, access was still tighter across channels and lender types.

The Federal Reserve has raised interest rates just once since May after 10 earlier increases starting last March, but Chairman Jerome Powell hasn't said he's done with the hikes, which have targeted eased inflation.

Cox’s Dealertrack Auto Credit Availability Index is baselined to January 2019.

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