Credit Access Continues to Climb in July
Strong new vehicle sales reports were matched by a third consecutive month of improved credit access in July, according to Dealertrack (div. Cox Automotive)’s latest Credit Availability Index, which climbed to 98.1 last month.
The index, which tracks auto finance credit availability by approval rates, term, down payment percentage and more, has improved steadily for nearly a year, excluding a slight downtick in April. The July report reflects a loan approval rate of 74.4%, up by 210 basis points from a month ago.
“Credit access improved across all sales channels and most lender types, with finance companies and captives leading the expansion,” the report states. “Consumers benefited from slightly lower borrowing costs and increased approval rates, while lenders balanced growth with cautious adjustments to risk exposure.”
