In January 2026, the Dealertrack Credit Availability Index held steady at 100.0, matching December’s level and remaining at its best reading since October 2022. The All-Loans Index was unchanged from December’s 100.0 but is up nearly 5% from January 2025. Individual metrics showed mixed movement, with some indicators of loosening offset by signs of tightening.

Dealertrack Credit Availability Index
Key Metrics
  • Approval Rates: The approval rate for auto loans fell to 71.8% in January, down 110 basis points (bps) from December, but up 40 bps from January 2025 (71.4%). Approval rates fell after two straight months of gains.
  • Subprime Share: The share of loans to subprime borrowers increased by 70 bps month over month (from 15.0% to 15.7%) and is up 290 bps year over year. After declining in November and December, subprime lending resumed its upward trajectory in January, reversing the two-month pullback and suggesting lenders are once again loosening access for higher-risk borrowers. Subprime lending remains significantly elevated compared to a year ago, reflecting sustained appetite for higher-risk credit.
  • Yield Spread: The yield spread rose by 31 bps (from 6.83 to 7.14), while the average contract rate rose by 39 bps (from 10.5% to 10.9%). The 5-year Treasury yield increased by 8 bps (from 3.70% to 3.78%). This widening spread represents less favorable pricing for consumers and may reflect lenders charging a premium to offset the increased risk from higher subprime lending and elevated negative equity.
  • Loan Term Length: The share of loans with terms greater than 72 months increased by 50 bps (from 27.5% to 28.0%) and is up 400 bps year over year, continuing December’s increase. This may reflect ongoing affordability pressures as consumers opt for longer terms to manage monthly payments, with lenders appearing willing to accommodate these requests.
  • Negative Equity Share: The proportion of borrowers with negative equity increased by 220 bps month over month (from 54.1% to 56.3%) and is up 470 bps year over year. This significant monthly increase fully reverses December’s 140 bps improvement and pushes the share to its highest level in recent months, signaling increased risk as more borrowers finance vehicles worth less than their outstanding loan balances.
  • Down Payment Percentage: The average down payment percentage increased by 10 bps (from 13.3% to 13.4%) but is down 80 bps year over year, reversing December’s decline. This modest increase may reflect lenders requiring slightly more upfront capital or consumers voluntarily putting more down, though down payments remain well below year-ago levels.
Channel and Lender Trends
  • Channels: Credit access improved across most sales channels in January. The largest gains were in the non-captive new segment, followed by the all-new and certified pre-owned (CPO) segments. While franchised-used dropped 0.5% and all-used dropped 0.2%, representing a more mixed outcome than in previous months.
  • Lender Types: Lender performance was mostly positive in January. Captives led the improvement again, with credit availability rising 1.2%, reflecting a strong appetite for growth and a greater willingness to extend credit. Banks and credit unions also showed loosening, up 0.4% and 0.1% respectively, while finance companies were unchanged. Overall, lenders are showing more willingness to extend credit, with captives driving the month-over-month improvement.
Year-Over-Year Comparison

Compared to January 2025, credit access was looser across most channels and all lender types:

  • Channels: The most notable year-over-year improvements were in franchised used and non-captive new, indicating stronger credit availability in both the new- and used-vehicle segments. All-used also saw solid improvement, followed by independent-used, all-new and CPO.
  • Lender Types: Banks and auto-focused finance companies led the year-over-year loosening, while captives also improved. Credit unions showed a more cautious yet still positive stance on credit access compared with a year ago.
Implications for Consumers and Lenders
  • Consumers: Ongoing improvements in credit access, especially in both new and used markets, continue to offer financing opportunities. While approval rates declined, the increase in subprime lending combined with longer loan terms suggests expanded access for some borrowers. However, the sharp rise in negative equity and higher yield spreads indicates growing risk and increased borrowing costs. Consumers should remain mindful of the total cost of ownership when evaluating loan offers.
  • Lenders: The performance across lender types reflects a shift in strategic priorities. Finance companies, captives, banks and credit unions all appear to be expanding access but with varying degrees of caution. The significant increase in negative equity suggests heightened risk exposure. As credit conditions evolve, lenders must balance growth with prudent risk management, especially amid shifting rate environments and consumer behavior.

Overall, the January Dealertrack Credit Availability Index reflected mixed auto credit conditions. While the index held steady at 100.0, individual metrics told a more complex story. Some measures continued to loosen, with increased subprime lending and longer loan terms offering expanded opportunities for certain borrowers. However, other indicators revealed tightening, most notably the decline in approval rates for the first time in three months and the sharp rise in negative equity to its highest level in recent months. The widening yield spread also indicates less favorable pricing for consumers despite the overall stable index level.

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View historical Dealertrack Credit Availability Index reports.

The Dealertrack Credit Availability Index tracks six factors that affect auto credit access: loan approval rates, subprime share, yield spreads, loan term length, negative equity and down payments. Reported monthly, the index indicates whether access to auto credit is improving or declining. This typically means that it is cheaper and easier for consumers to obtain a loan or more expensive and harder. The index is published around the tenth of each month.