Cox Automotive’s Dealertrack Credit Availability Index hit 95.4 in January, a 2.9% year-over-year improvement and the highest level in nearly two years.

The index uses a number of metrics to determine the level of credit access available to U.S. car buyers. Auto credit access remained essentially flat compared with December with some cause for concern: Loans with terms greater than 72 months grew as a percentage of all loans, breaking a four-month streak, and analysts said loans with negative equity were up “sharply” in January.

But auto credit did loosen last month, with loans to subprime credit borrowers up by 100 basis points from December, claiming their largest share since April 2024. The National Automobile Dealers Association reported dealers were on track to move more than 15 million new units this year after encouraging January sales reports.

“The larger presence of high-risk loans loosened access for some borrowers, and the impact was by far the most favorable factor of credit availability this month,” the Cox report states, in part.

Read more at Cox Automotive