Auto Credit Availability Expands Again in September, Getting Closer to Pre-Pandemic Access

Access to auto credit expanded slightly in September according to the Dealertrack Credit Availability Index for all types of auto loans. The All Loans Index increased 0.4% to 98.9 in September, reflecting that auto credit was slightly easier to get in the month compared to August. Access was looser by 5.5% year over year, but compared to February 2020, access was tighter by 0.3%.

All loan types saw modest easing in September. Franchise Used Loans loosened the most, while New 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 standards movement was varied across lender types in September. Credit access loosened at banks, credit unions, and auto-focused finance companies but tightened at captives. On a year-over-year basis, all lenders had looser standards. Credit unions have loosened credit access the most year over year. Compared to February 2020, only auto-focused finance companies were looser in September, while credit unions had tightened the most.

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.