Subprime Approvals Lagging Behind, Reports CNW
Auto finance sources continued to favor the less risky lending categories in June, with approval rates for the prime and near-prime categories reaching new highs. The story was different for subprime approvals, which continued their descent from a high in April, according to CNW Research.
Excluding leases, balloon notes and other non-traditional financing, approval rates for prime (750+) and nearprime (620-749) grew from 89.89 percent and 80.37 percent, respectively, in May to 90.13 percent and 82.58 percent in April. This was the highest point for approvals since 2007 for the prime segment and 2008 for the nearprime segment.
Including all forms of financing, approval rates for the prime and near-prime segments grew from 92.47 percent and 86.59 percent, respectively, in May to 92.81 percent and 86.74 percent in June.
The best month for subprime approvals occurred in April, when application approvals reached 10.28 percent – the highest point since October 2008. Since then, approval rates have fallen to 9.11 percent in May and 9.05 percent in June. Including all forms of financing, approval rates for the high-risk category fell from 14.04 percent in May to 13.26 percent in June.
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →