Car Loan Credit Access Tightens in January
Hits 2 ½-year low. Subprime, negative-equity shares fall.
Most loan types tightened in January; only used-vehicle loans through independent dealers were looser.
IMAGE: Raten-Kauf
Credit availability for vehicle purchases diminished in January to its tightest level since June 2021, Cox Automotive reported.
Its Dealertrack Credit Availability Index for all vehicle types fell 1% from December’s level to 98.0.
Credit access was 3.9% tighter year-over-year. Compared to February 2020, just before the pandemic descended in the West, access was tighter by 1.2%, Cox said.
The subprime share fell from 11% in December to 10.3% and was down 1.5 percentage points year-over-year. Still, consumer terms were lengthened and the approval rate rose 0.2 percentage points but was down 1.9 percentage points year-over-year. Down payments stayed at a record high, the average percentage up 1.8 percentage points year-over-year.
Most loan types tightened in January; only used-vehicle loans through independent dealers were looser. Certified preowned loans tightened most.
The Dealertrack index is baselined to January 2019 to track credit access changes over time.
Originally posted on F&I and Showroom
More Industry
Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →