Credit Access Improves by 4.1% in October
The Dealertrack (div. Cox Automotive) Credit Availability Index increased to 98.3 last month, continuing a trend toward loosening conditions that began more than a year ago.
Dealertrack’s All Loans Index ended the month at 98.3, an 0.4-point increase from September and a 4.1% improvement from October 2024.
Although approval rates declined by 1.4 points from September to 72.6%, a steadily growing subprime market share (up from 14.2% to 15.1%) indicates finance sources are taking chances on higher-risk borrowers.
Correspondingly, terms of 72 months or more represented 27.5% of all transactions (up from 26.8% a year ago) and the average down payment percentage ticked down to 13.3%.
“The continued improvement in credit access, especially in franchise used and non-captive new vehicle segments, continues to offer financing opportunities,” the report states. “While approval rates declined, the drop in down payments and more flexible loan terms may enhance affordability.”
