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.
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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.
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