Auto Loans More in Reach
October easier to tap despite approval rates falling

Loan access improved among all lender types, led by captive lenders.
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Automotive finance conditions were mixed in October, though overall credit access continued loosening that started last summer, Cox Automotive said.
The company’s All-Loans Index inched up from 97.9 in September to 98.3, a 4% year-over-year increase.
Still, approval rates fell 1.4 percentage points, though that’s up 50 basis points year-over-year and was balanced by increased subprime loans, longer loan terms and lower down payment minimums, the latter of which fell 20 basis points, or a 70 basis-point decline year-over-year.
The subprime share of loans rose 90 basis points to 15%, 240 basis points above a year earlier. A 12 basis-point yield spread widening showed greater credit access to subprime borrowers, though pricing was less appealing for consumers, Cox said.
Meanwhile, loans longer than 72 months rose nearly a percentage point to about 28%, betraying either declined affordability or lender flexibility, according to the report.
Loan access improved among all lender types, led by captive lenders, while banks and automotive-centered lenders were the loosest year-over-year. Most channels also loosened, particularly the noncaptive segment, and franchised used-vehicle and noncaptive new-vehicle lending loosened the most year-over-year.
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