Your #1 source for auto industry news and content

spot_img

Auto credit access expanded in September — Dealertrack

Cox Automotive released its Dealertrack Credit Availability Index for the month of September, showing that access to auto credit expanded for the first time in the last five months.

The All-Loans Index increased 1.1% to reach 103.7 in September, showing that auto credit was easier to access compared to the month of August and that conditions were looser than before July. The increase showed that access was looser by 4.8% year over year and 4.5% looser compared with February 2020.

The Index showed the average yield spread on auto loans narrowed, meaning consumers saw better rates on auto loans relative to bond yields in September. The average auto loan rate increased by 40 Basis Points (BPs) compared to August, while the 5-year US Treasury increased by 66 BPs.

The subprime share increased to 11.7% in the month, and the share of auto loans with negative equity also increased slightly.

All loan types loosened during September, with all new loans loosening the most and used loans through independent dealers loosening the least. Year over year, all channels saw higher access.

The index also showed credit access expanded across all lender types, with credit unions seeing the most loosening and other lenders close behind.

Adverse outcomes for consumers came in the form of falling approval rates, the share of longer-term loans declines, and an increase in down payment shares.

Meanwhile, The Conference Board Consumer Confidence Index increased by 4.2% in September, with both underlying measures of the present situation and expectations seeing improvement. The sentiment index from the University of Michigan also saw an increase, albeit at a smaller 0.7%, with only views of current conditions improving.


Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.

spot_img
CBT News
CBT News
For over 10 years, CBT News has been informing and helping automotive retail professionals grow their businesses and thrive in their careers through an awarding-winning, on-demand streaming platform. With exclusive interviews featuring the biggest names in the industry, daily newscasts, up-to-date market data, and exclusive articles covering the latest trends, CBT News is your #1 source for auto industry news and content.

Related Articles

spot_img

Latest Articles

From our Publishing Partners