U.S. auto credit availability rose to its highest level in four years in May, according to the Dealertrack (div. Cox Automotive) Credit Availability Index, which stands at 103.7, up 1.5% from April and 7.3% from May 2025.

Analysts say the gain was driven primarily by a narrowing yield spread and a remarkable recovery in approval rates, which rose to 72.4% in May, up 180 basis points from April. A second straight monthly decline in subprime share, from 17.4% to 16.7%, served as the main offset.

“Despite the total index reaching its highest level since April 2022, three of four lender type indices fell or were flat in May, a signal that portfolio-level dynamics varied significantly from the headline,” the report states.

The share of loans with terms exceeding 72 months hit a new all-time high of 30%, and negative equity remains elevated at 57.3%, both of which the report flags as key watchpoints for finance sources going forward.

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