Car Loan Access Down
January continued three-month streak of tightening across channels.
IMAGE: Pexels/Sora Shimazaki
Automotive credit was harder to get as the year began, tightening in all channels and lender types, according to Cox Automotive analysis.
A string of declines that started in late fall continued to reach the index’s lowest level since August 2020 and making for tighter access than a year earlier.
Multiple conditions combined to make credit harder to come by for consumers: widening yield spreads, and falling term lengths, approval rates and subprime share, Cox said.
The only metric in consumers’ favor in January was an uptick in the negative-equity share. Though flat, the down-payment share was at its highest in the report’s history.
New-vehicle loan access was the tightest for the month.
Loan approval rates were down 1.6 percentage points year-over-year, while the subprime share was up 0.6 percentage points.
DIG DEEPER: Shifting Economy Sends Auto Loan Rates Up
Originally posted on Auto Dealer Today
More Industry
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →