Auto Credit Tougher to Get
Auto-focused lenders were the exception in August, when overall consumer confidence actually rose.
Cox said the share of loans longer than 72 months fell by 60 basis points and was down about two percentage points year-over-year.
Pexels/Саша Алалыкин
Getting credit to buy a car got a little harder in August, though conditions loosened some through automotive-focused lenders, and overall consumer confidence improved for the month.
Cox Automotive’s Dealertrack Credit Availability Index fell slightly, by half a percent month-over-month and by about 2% year-over-year to 92.5.
Loan terms shortened and yield spreads grew, negatively affecting access, while approval rates and subprime and negative-equity shares rose modestly, making access easier, for the slight tightening net effect.
Auto credit tightened in all sales channels and all lender types except auto-focused lenders.
Cox said the share of loans longer than 72 months fell by 60 basis points and was down about two percentage points year-over-year.
Auto borrowers who are under water on their loans rose for the second straight month and were up four percentage points year-over-year.
Despite the mixed conditions for auto consumers, the overall consumer sentiment actually brightened in August, based on three indexes Cox cited.
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