Auto credit availability rose for a fourth consecutive month in August, with the Dealertrack (div. Cox Automotive) Credit Availability Index climbing to 105.3 — its highest level since November 2015 — but the gain came entirely through looser loan structures rather than lower rates or improved credit quality.

Analysts say record 31.3% of loans carried terms exceeding 72 months in August, the third consecutive month at or above 31%, while the share of loans with negative equity rose 60 basis points to 57.4% — the first increase in five months — and subprime share edged back up 20 basis points to 16.6% after four consecutive monthly declines.

Approval rates rose 20 basis points to 73.9%, their fifth consecutive monthly increase, while the yield spread widened 4 basis points to 6.61%, the only drag on the index.

“The index reached its highest level since November 2015 because credit loosened through loan structure rather than lower rates,” writes Scott Vanner, manager of economic and industry insights at Cox Automotive. “Longer terms and negative equity rose broadly across lenders, and the subprime share increased even though fewer subprime loans were originated.”

Read the full report at Cox Automotive