Car Loan Access Down
January continued three-month streak of tightening across channels.
IMAGE: Pexels/Sora Shimazaki
Automotive credit was harder to get as the year began, tightening in all channels and lender types, according to Cox Automotive analysis.
A string of declines that started in late fall continued to reach the index’s lowest level since August 2020 and making for tighter access than a year earlier.
Multiple conditions combined to make credit harder to come by for consumers: widening yield spreads, and falling term lengths, approval rates and subprime share, Cox said.
The only metric in consumers’ favor in January was an uptick in the negative-equity share. Though flat, the down-payment share was at its highest in the report’s history.
New-vehicle loan access was the tightest for the month.
Loan approval rates were down 1.6 percentage points year-over-year, while the subprime share was up 0.6 percentage points.
DIG DEEPER: Shifting Economy Sends Auto Loan Rates Up
Originally posted on Auto Dealer Today
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 →