Auto Loan Access Flat
January’s mixed conditions bring good and bad news for consumers.

Loan accessibility improved the most for certified preowned vehicles.
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Auto credit access was mixed in January as some conditions improved for some consumers while others declined.
Cox Automotive’s Dealertrack Credit Availability Index was flat month-over-month at a reading of 95 but up about 3% year-over-year. It said that represents the best access since March 2023 after a December dip.
Accessibility improved across all channels, especially for certified preowned vehicles, but was mixed among lender types, Cox said.
The market watcher also observed a mix of circumstances that kept the index flat:
A 160 basis-point decline in loan approval rates
A 46 basis-point jump in the average auto loan rate for the first rate increase since March of last year
A 28 basis-point increase in yield spreads
A 100 basis-point increase in the subprime share for the biggest share since April 2024
A 50 basis-point increase in loans with terms longer than 72 months
A 120-basis point increase in loans with negative equity
Credit access was greater than a year earlier for all channels and lender types and the loosest for noncaptive new-vehicle loans, Cox said. It further explained that banks and captive finance companies’ lending policies have loosened while auto-focused finance companies and credit unions have tightened access.
Originally posted on F&I and Showroom
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