Auto credit availability rose for a sixth consecutive month in July, with the Dealertrack (div. Cox Automotive) Credit Availability Index climbing to 105 — its highest level since December 2015 — as yield spreads narrowed and approval rates continued their upward trend.

The monthly gain was driven primarily by a narrowing yield spread, which fell 20 basis points to 6.57%, its narrowest reading since January 2025, as well as a further improvement in approval rates, which rose to 74% — their highest level since August 2025. A fourth consecutive monthly decline in subprime share, to 16.4%, served as the primary offset.

“The loosening came through structure more than pricing or credit quality,” writes Jonathan Gregory, Cox’s senior director of economic and industry insights. “Longer loans, thinner equity at origination, and an elevated share of loans written above the value of the collateral remain the watchpoints, compounding duration and collateral risk across the book even as credit quality holds.”

The share of loans with terms exceeding 72 months held at 31.1% for a second consecutive month — a record high in the dataset — while down payments fell to 13%, their lowest level since October 2022, according to the report. Negative equity declined for a fourth straight month to 56.8% but remains 269 bps above year-ago levels.

Read the full report at Cox Automotive