Auto Loans Easier to Come By
March credit loosening, though, came with compromises.
Though more consumers could borrow for a new vehicle, many may be paying more.
Pexels/Sora Shimazaki
Auto credit access reached a more than two-year high in March as approval rates increased and conditions loosened among all channels.
Cox Automotive’s All-Loans Index rose 3% year-over-year to 96.4 as approval rates increased by 150 basis points.
Several metric increases, though, showed some continued vulnerabilities. Both the negative equity share of borrowers and the average down payment percentage rose 40 basis points, while the subprime share increased 220 basis points.
Meanwhile, yield spreads rose 50 basis points, indicating that lenders are mitigating taking on more risk by charging higher interest rates.
Credit access loosened year-over-year across channel and lender types, the most for noncaptive new-vehicle transactions and for credit unions.
The loosening means lenders had increased appetite for risk, and though more consumers could borrow for a new vehicle, many may be paying more, Cox pointed out in its analysis.
LEARN MORE: Helping Customers Understand Gap Insurance Benefits
Originally posted on F&I and Showroom
More Industry
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
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 →