Auto credit availability rose for a fifth consecutive month in September, with the Dealertrack (div. Cox Automotive) Credit Availability Index climbing to 107.1 — its highest level since April 2015 — as all six index components contributed to the gain for the first time this year.

Analysts say the September advance was led by a rebound in subprime share, which rose 80 basis points to 17.4% after two months of decline, and a narrowing yield spread, which fell 19 basis points to 6.42% — its lowest level since December 2024 — as the 5-year U.S. Treasury yield climbed 42 basis points to 4.8%, a 19-year high.

Loan approval rates rose 30 basis points to 73.9%, while the share of loans exceeding 72 months hit a record 31.8% for the fourth consecutive month at or above 31%. Down payments slipped to 12.8%, their lowest level since September 2022, and negative equity rose to 57.8%.

“The index reached its highest level since April 2015 because credit loosened through loan structure and a higher subprime share, while the yield spread narrowed,” the report states. “Lenders are taking on more risk through a higher subprime share, longer terms and more negative equity, which raises potential losses if borrowers default, while earning a smaller spread over Treasury yields.”

Read the full report at Cox Automotive