Auto Credit Access Stable
May mix of conditions shows year-over-year loosening by most measures.

Year-over-year, access was greater in every channel but franchised used sales, which was flat, and for all lender types.
Pexels/Mike Bird
Auto credit access was stable last month, Cox Automotive’s All-Loans Index essentially flat at 94.8.
Availability grew tighter in most channels and all lender types, said Cox, which observed that the subprime and negative equity shares fell while the approval rate, term length and down payments rose and yield spreads narrowed, balancing out conditions for the borrowing consumer.
Year-over-year, access was greater in every channel but franchised used sales, which was flat, and for all lender types, Cox said. Captive lenders and credit unions were loosest.
May’s approval rate rose 20 basis points month-over-month as the share of loans with terms longer than 72 months rose slightly but was down 1.5 percentage points year-over-year.
Auto consumers’ outlook was mixed, depending on the tracking index.
Their plans to buy a vehicle in the next month were flat year-over-year, based on the Conference Board Consumer Confidence Index. But their view of vehicle buying conditions fell to its lowest since the fall due to their declining assessment of interest rates, according to a University of Michigan sentiment index.
The Federal Reserve left interest rates unchanged on Wednesday in its effort to cool inflation while saying it plans to cut rates once this year.
Originally posted on Auto Dealer Today
More Auto Finance

July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →