Auto Loans Easier to Come By
Greater credit access in November combines with falling delinquencies for more stable conditions.
Cox's All-Loans Index rose 1% in November to 95.4, the highest point since October 2023.
Pexels
Automotive credit loosened the most in more than a year, easing the most for new-vehicle loans.
In November more borrowers won loan approvals, in addition to better loan rates, says Cox Automotive, which observed greater credit access across all channels and lender types.
Its All-Loans Index rose 1% to 95.4, the highest point since October 2023.
Loan approval rates jumped by 60 basis points for the month, and terms longer than 72 months fell 80 basis points in their third straight monthly decrease. Meanwhile, loans with negative equity plunged 140 basis points, and the subprime share fell 40 basis points, though it was up slightly year-over-year, Cox said.
One dark spot in the credit picture was a 40 basis-point increase in the down payment percentage, the first such increase since February. Despite that and shorter loan terms, though, Cox said overall conditions combined for more favorable borrowing chances for auto consumers for the first year-over-year loosening in six months.
Originally posted on F&I and Showroom
More Industry
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →