U.S. auto loan approval rates continue to trend upward, according to Dealertrack (div. Cox Automotive)’s Credit Availability Index, which stands at 99.6 as of the end of December, propelled by a two-year high for the data provider’s All-Loans Index.

Overall approval rates improved by 90 basis points from November and 80 bps from December 2024. However, a declining share of subprime buyers (14.1% of all loans) suggests finance sources are being more selective.

Those who are financed are more likely to do so on a 72-plus-month deal (27.3% of all borrowers) and with a smaller down payment (down 10 bps to 13.3% of the purchase price).

“For full-year 2025, the Dealertrack Credit Availability Index averaged 97.3, a 3.4-point improvement from 2024’s average of 93.9, representing a 3.6% year-over-year gain,” analysts write. “This marks a notable reversal from 2024, which saw the index decline slightly from 2023 levels as lenders remained cautious amid elevated rates and affordability pressures.”

Read the full report at Cox Automotive