Auto Loans Easier to Come By
Greater credit access in November combines with falling delinquencies for more stable conditions.
Cox's All-Loans Index rose 1% in November to 95.4, the highest point since October 2023.
Pexels
Automotive credit loosened the most in more than a year, easing the most for new-vehicle loans.
In November more borrowers won loan approvals, in addition to better loan rates, says Cox Automotive, which observed greater credit access across all channels and lender types.
Its All-Loans Index rose 1% to 95.4, the highest point since October 2023.
Loan approval rates jumped by 60 basis points for the month, and terms longer than 72 months fell 80 basis points in their third straight monthly decrease. Meanwhile, loans with negative equity plunged 140 basis points, and the subprime share fell 40 basis points, though it was up slightly year-over-year, Cox said.
One dark spot in the credit picture was a 40 basis-point increase in the down payment percentage, the first such increase since February. Despite that and shorter loan terms, though, Cox said overall conditions combined for more favorable borrowing chances for auto consumers for the first year-over-year loosening in six months.
More Auto Finance
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 →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →