Auto Loan Access Eases
September numbers break streak of tightening while some borrowers walk a shaky line.
Independent used sales was the only segment to stay buttoned up. Compared to a year earlier, credit for certified preowned vehicle purchases was tightest.
Pexels/Sora Shimazaki
Auto credit hurdles finally eased up in September, ending a five-month streak of tightened access.
Most channels and all lender types loosened up last month, according to Cox Automotive, whose All-Loans Index rose about half a percentage point to 92.8, though that’s down 2% year-over-year.
Auto credit was a little easier to come by due to decreased average loan rates, increased subprime share, and longer loan terms, Cox said.
Independent used sales was the only segment to stay buttoned up. Compared to a year earlier, credit for certified preowned vehicle purchases was tightest.
The overall greater accessibility was led by credit unions and banks, said Cox, which noted that auto loan rates have fallen 113 basis points since March.
Signs of less auto consumer stability nevertheless shone through in September, when loans with negative equity rose for the fourth straight month, up about 2% year-over-year. And loans with terms longer than 72 months were up 80 basis points after dropping in August.
Several consumer confidence indices that Cox tracks showed mixed results for the month.
More Auto Finance
Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →