Auto Loans More in Reach
October easier to tap despite approval rates falling

Loan access improved among all lender types, led by captive lenders.
Pexels/RDNE Stock Project
Automotive finance conditions were mixed in October, though overall credit access continued loosening that started last summer, Cox Automotive said.
The company’s All-Loans Index inched up from 97.9 in September to 98.3, a 4% year-over-year increase.
Still, approval rates fell 1.4 percentage points, though that’s up 50 basis points year-over-year and was balanced by increased subprime loans, longer loan terms and lower down payment minimums, the latter of which fell 20 basis points, or a 70 basis-point decline year-over-year.
The subprime share of loans rose 90 basis points to 15%, 240 basis points above a year earlier. A 12 basis-point yield spread widening showed greater credit access to subprime borrowers, though pricing was less appealing for consumers, Cox said.
Meanwhile, loans longer than 72 months rose nearly a percentage point to about 28%, betraying either declined affordability or lender flexibility, according to the report.
Loan access improved among all lender types, led by captive lenders, while banks and automotive-centered lenders were the loosest year-over-year. Most channels also loosened, particularly the noncaptive segment, and franchised used-vehicle and noncaptive new-vehicle lending loosened the most year-over-year.
Originally posted on F&I and Showroom
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →