Auto consumers had an easier time getting credit for their vehicle purchases for the second month in a row.
Cox Automotive’s All-Loans Index rose 2% month-over-month in October to 94.5, its biggest jump in more than two and a half years.
Auto Credit Easier to Come By
Conditions improved in October across the board, though some measures are still down from prepandemic levels, Cox says.
November 12, 2024
Both loans in negative equity and those with terms longer than 72 months fell in October.
Credit:
Pexels/Jakub Zerdzicki
1 min to read
The auto services and technology provider said loan approval rates improved for the month as the subprime share increased and yield spreads shortened.
Credit access eased in every channel and lender type, especially for certified preowned purchases, Cox said.
Though access was still tighter than a year earlier and auto-focused finance firms were the only segment offering more credit than before the pandemic, the share of loans with negative equity fell. The 30 basis-point drop reversed a four-month trend of increases, Cox said, though such loans were still up 1.6 percentage points year-over-year.
Meanwhile, loans with terms longer than 72 months also fell 30 basis points and were down about 1% year-over-year.
DIG DEEPER: Is the Death Knell Being Sounded for Dealer Financing?
Originally posted on F&I and Showroom
More Industry
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →
Auto Loan Outlook Shows Cracks
Recent survey data shows that the overall demand for auto loans is down, but the demand for subprime loans is up as consumers face economic uncertainty and affordability pressures.
Read More →
Lone Star State Store Sells
The Mitsubishi location moves from one Texas automotive group to another, continuing this year’s spate of brisk buy-sell activity.
Read More →
Mitsubishi Gallery Makes Progress
As part of its 2030 business plan, Mitsubishi's North America arm will soon open its first 'gallery' store in Tennessee, where customers can learn about the brand, vehicles and technology.
Read More →
Senators Propose Chinese Connected Car Ban
Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.
Read More →
Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Read More →
Bad Credit Tanks Attainability
A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.
Read More →
A New Consumer Culture in the Auto Dealership
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
New-Vehicle Sales Down
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →