Dealertrack Credit Availability Index Improves Substantially

Takeaway: In 2024, the Dealertrack Credit Availability Index showed a mixed trend in auto credit access. Throughout the year, there were notable fluctuations in key factors such as loan approval rates, yield spreads, subprime loan share, loan term lengths, negative equity, and down payments. Overall, while there were improvements in some areas, such as approval rates, yield spreads, and a higher share of subprime buyers, other factors like fluctuating negative equity suggested there were challenges for consumers seeking auto credit. The year ended on a good note, with the Dealertrack Credit Availability Index reporting the highest level of auto credit access since March 2023.

What’s next: To date in 2025, access to auto credit has improved further, reaching the highest level since December 2022. So far, the Dealertrack Credit Availability Index has reflected notable improvements in auto credit availability, reflecting both lender behavior and broader economic conditions. In the early months of the year, higher approval rates can be attributed to lenders’ confidence in the economic outlook and consumers’ ability to repay loans.