Automotive credit availability increased slightly in June, according to Cox Automotive analysts, though lender movements were conservative in the face of highly leveraged borrowing in an inflated market in tariff limbo.

Cox’s Dealertrack Credit Availability Index kept ticking up, its All-Loans Index rising nearly a percentage point over May to 97. The movement continued a series of upticks that started last summer and that’s been interrupted only by an April pause analysts attribute to uncertainties around U.S. trade tariff moves.

Credit access widened in all channels and with most types of lenders, led by captives and auto-focused finance companies. Approval rates rose 70 basis points, and borrowing costs ticked down a tad as “lenders balanced growth with cautious adjustments to risk exposure,” Cox said. It credited the increased availability in part to reduced rate pressure.

Amid the improved conditions, though, were the continued presence of overly stretched borrowers. The subprime share of loans rose 10 basis points, loans longer than 72 months jumped 80 basis points, and the portion of borrowers with negative equity was flat at a record 55%.

A bright spot among borrowers came with a 40 basis-point drop in the average down payment percentage, “possibly reflecting increased consumer demand or greater lender flexibility,” Cox said.

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