Auto Credit Availability Expands Again in October, Making Credit Easier to Get Than Pre-Pandemic

Access to auto credit expanded again in October, according to the Dealertrack Auto Credit Availability Index for all types of auto loans. The All Loans Index increased 1.6% to 100.5 in October, reflecting that auto credit was easier to get in the month compared to September. Access was looser by 6.8% year over year and compared to February 2020, access was looser by 1.3%. 

All loan types saw easing in October. Non-captive new loans loosened the most, while independent used loans loosened the least. On a year-over-year basis, all loan types were easier to get with non-captive new loans having loosened the most. 

Credit also loosened across all lender types in October. On a year-over-year basis, all lenders had looser standards with credit unions having loosened the most. In addition, all lender types were also looser compared to February 2020. This was the first time that banks and credit unions reached their pre-pandemic levels of access. Compared to February 2020, auto-focused finance companies have loosened the most. Credit unions loosened the most in October.

The Dealertrack Credit Availability Index is a new monthly index based on Dealertrack credit application data and will indicate whether access to auto loan credit is improving or worsening. The index will be published around the 10^th of each month.