The Dealertrack (div. Cox Automotive) Credit Availability Index improved to 102.4 in March, its highest reading since June 2022 and a 6% year-over-year increase.

Analysts say the U.S. auto loan approval rate increased by 40 basis points to 70.8% in March, reversing a two-month trend, driven largely by the subprime segment.

“The share of loans to subprime borrowers increased by 200 bps month over month (from 17.5% to 19.5%) and is up 300 bps year over year. March’s reading of 19.5% is the highest level in the dataset since March 2020. This sustained expansion suggests lenders are increasingly comfortable extending credit to higher-risk borrowers,” the report states.

Average down payments improved to 13.9% from 13.6% in March but declined by 80 bps year-over-year. Repayment terms of 72 months or longer ticked down to 28.8% after increasing for three straight months to reach 29.3% in February’s report.

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