Auto Credit Easier to Come By
Conditions improved in October across the board, though some measures are still down from prepandemic levels, Cox says.
Both loans in negative equity and those with terms longer than 72 months fell in October.
Pexels/Jakub Zerdzicki
Auto consumers had an easier time getting credit for their vehicle purchases for the second month in a row.
Cox Automotive’s All-Loans Index rose 2% month-over-month in October to 94.5, its biggest jump in more than two and a half years.
The auto services and technology provider said loan approval rates improved for the month as the subprime share increased and yield spreads shortened.
Credit access eased in every channel and lender type, especially for certified preowned purchases, Cox said.
Though access was still tighter than a year earlier and auto-focused finance firms were the only segment offering more credit than before the pandemic, the share of loans with negative equity fell. The 30 basis-point drop reversed a four-month trend of increases, Cox said, though such loans were still up 1.6 percentage points year-over-year.
Meanwhile, loans with terms longer than 72 months also fell 30 basis points and were down about 1% year-over-year.
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