In September 2025, the Dealertrack Credit Availability Index resumed its upward trend of improved credit access after a slight tightening in the previous month. The All-Loans Index edged up to 98.1 in September from 97.9 in August, marking a 0.2-point increase. This resumes the broader run of loosening credit conditions that began in late summer 2024, but trends varied by lender type.

Dealertrack Credit Availability Index
Key Metrics
  • Approval Rates: The approval rate for auto loans remained steady at 74.4% in September, unchanged from August, but up 2.3 percentage points from September 2024 (72.1%). This stability at a high level reflects lenders’ confidence in borrower profiles and heightened competition for volume.
  • Subprime Share: The share of loans to subprime borrowers increased by 60 basis points (BPs) month over month (from 13.6% to 14.2%) and is up 170 BPs year over year. This suggests lenders are expanding access to higher-risk borrowers as overall credit loosens.
  • Yield Spread: The yield spread widened by 38 BPs (from 6.86 to 7.24), while the average contract rate rose by 25 BPs (from 10.65% to 10.90%). The 5-year Treasury yield fell by 13 BPs (from 3.79% to 3.66%). This indicates lenders are offering slightly higher rates to compensate for higher risks as the cost of funds has fallen.
  • Loan Term Length: The share of loans with terms greater than 72 months increased by 130 BPs (from 25.5% to 26.8%) and is up 200 BPs year over year. This may reflect greater affordability pressures or lender flexibility on term length.
  • Negative Equity Share: The proportion of borrowers with negative equity rose by 50 BPs month over month (from 53.5% to 54.0%) and is up 60 BPs year over year. This signals some increase in risk but remains within historical norms.
  • Down Payment Percentage: The average down payment percentage declined by 10 BPs (from 13.6% to 13.5%) and is down 50 BPs year over year. This may indicate increased consumer demand or lender flexibility.
Channel and Lender Trends
  • Channels: Credit access improved across most sales channels in September. The largest gains were seen in the independent used segment, followed by all used and all new. Certified pre-owned (CPO) also saw a notable increase, while franchised used and non-captive new segments remained stable. These gains suggest broad-based loosening, with the independent used segment continuing to lead improvements.
  • Lender Types: Lender performance was mixed again in September. Banks led the improvement, with credit availability rising by 1.6%, reflecting a strong appetite for growth and increased willingness to extend credit. Auto-focused finance companies also showed notable loosening, up 0.9%. Credit unions posted a 0.4% increase. In contrast, captives saw a decline of 0.9%, indicating a more cautious approach. Overall, lenders are showing more willingness to extend credit, with banks and finance companies driving the improvement.
Year-Over-Year Comparison

Compared to September 2024, credit access was looser across most channels and lender types:

  • Channels: The most notable year-over-year improvements were in non-captive new and franchise used, indicating stronger credit availability in both new and used vehicle segments. Independent used also improved, though more modestly. All used, all new, and CPO also saw gains.
  • Lender Types: Banks and auto-focused finance companies led the year-over-year loosening, while credit unions also improved. Captives showed a more cautious but still positive stance compared to a year ago.
Implications for Consumers and Lenders
  • Consumers: The continued improvement in credit access, especially in used and non-captive new vehicle segments, offers more financing opportunities. The drop in down payments and stable approval rates may enhance affordability. However, consumers should remain mindful of longer loan terms and slightly higher negative equity levels when evaluating loan offers.
  • Lenders: The mixed performance across lender types reflects varying risk appetites and strategic priorities. Finance companies, captives and banks appear to be expanding access, while credit unions are slightly more conservative. As credit conditions evolve, lenders must balance growth with prudent risk management, especially amid shifting rate environments and consumer behavior.

Overall, the September Dealertrack Credit Availability Index reflected a return to loosening in auto credit conditions after a brief pause in August, influenced by the recent rate cut but reflecting still evolving economic signals and elevated loan performance risk. Consumers experienced slightly improved access to financing, particularly among subprime borrowers, but consumers paid for that improvement with higher rates.

Read Full Report

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 10th of each month.