On the Dash:
- The Dealertrack Credit Availability Index reached 99.1 in November, its highest level since October 2022.
- Approval rates rose to 73.6%, yield spreads narrowed to 6.80, and subprime lending decreased month over month.
- Credit improved across all channels and lender types, led by captives, credit unions, and franchised used vehicles.
In November 2025, the Dealertrack Credit Availability Index reached 99.1, marking the highest level since October 2022 as access to auto credit improved. The All-Loans Index increased by 4% compared to November 2024 and rose by 1.1 points from October’s figure of 98.1, continuing a broader trend of easing that began in late summer 2024.
Auto loan approval rates climbed to 73.6% in November, up by 1.6 percentage points from October and 100 basis points from November 2024. This rebound followed two consecutive months of decline. The share of loans granted to subprime borrowers decreased by 80 basis points from the previous month, dropping from 15.1% to 14.3%, although it remains up by 200 basis points year over year.
Yield spreads narrowed by 56 basis points, falling from 7.36% to 6.80%, while the average contract rate dropped by 53 basis points, from 11% to 10.5%. The 5-year Treasury yield rose slightly, from 3.65% to 3.68%. The improvement in the overall index was primarily driven by spread compression, which led to better pricing despite lenders becoming more cautious about higher-risk borrowers.
The percentage of loans with terms longer than 72 months fell by 40 basis points to 27.1%, though it is still up by 330 basis points year over year. The share of loans with negative equity dropped by 140 basis points to 52.8%, up 110 basis points from the previous year. Average down payments increased by 10 basis points to 13.4%, which is slightly lower than November 2024’s average of 13.5%.
Credit access improved across all sales channels, with the largest gains in the all-new and all-used segments. Franchised used and certified pre-owned vehicles also increased. Non-captive new loans remained relatively stable. Among lenders, captive finance companies led the way with a 1.7% gain, followed by credit unions at 1.1%, finance companies at 0.6%, and banks at 0.1%. Year over year, banks and auto-focused finance companies were at the forefront of credit loosening, while captives remained more cautious but still positive.
Consumers are benefiting from broader financing opportunities, especially in the all-new and all-used segments. Nevertheless, slight increases in down payments and more cautious loan terms may affect affordability. Lenders are expanding access while reducing the issuance of subprime loans and longer-term contracts, striving to balance growth with risk management.
Overall, the November Dealertrack Credit Availability Index reflects continued easing in auto credit conditions, driven by narrower yield spreads and higher approval rates, while lenders remain cautious about riskier borrowers.
