Auto Borrowers Had Mixed Month
Credit access varied depending on vehicle, lender type, Cox says.
The share of loans whose terms exceed 72 months rose 89 basis points, though it fell one percentage point year-over-year.
Pexels/RDNE Stock Project
Auto credit availability was mixed in April, with an overall slight tightening year-over-year among new and certified preowned channels and banks and captive finance companies.
Cox Automotive’s All-Loan Index was essentially flat with a dip of less than 1% to 93.8.
Used-vehicle loans through independent dealers loosened the most as certified preowned loan access was tightest. Of lenders, credit loosened the most through finance companies specializing in automotive loans and tightened the most through banks.
Approval rates and the subprime share fell from for the month, reducing access on the one hand, while yield spreads tightened, terms lengths expanded, down payment amounts shrank and negative equity increased in deals, increasing access on the other hand, Cox said.
It said the share of loans whose terms exceed 72 months rose 89 basis points, though it fell one percentage point year-over-year.
Originally posted on Auto Dealer Today
More Auto Finance
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →