Risk factors in auto lending continued to rear their heads in April as consumers squeezed themselves into new rides and lenders sought to balance conditions.

The share of extra-long loan terms hit a record high, Cox Automotive said in its monthly Dealertrack Credit Availability Index report. And though the subprime share retreated from a six-year peak in March, it was still up sharply from a year earlier.

Similarly, the number of borrowers with negative equity, though their share fell 70 basis points from March to about 59%, was still up by a dramatic 540 basis points year-over-year.

Captive lenders and credit unions cut auto credit availability for the month, captives by about half a percentage point.

Overall subprime lending fell 210 basis points from March to 17%, though that was still up 370 basis points from a year earlier.

The subprime tightening was offset by the nearly 100 basis-point rise in 72-month-plus loan terms to about 30%, in addition to narrowing yield spreads and increased approval rates, Cox reported. The latter climbed 60 basis points to 71%, though that was down 120 basis points year-over-year.

The long loan terms and negative equity point to continued consumer affordability pressures that lenders and auto dealers must juggle.

Cox’s credit availability index was essentially flat month-over-month at 102, its highest reading since June 2022.

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