- Lenders approved more car loans in June
- They also accepted lower down payments and granted longer terms
It’s getting easier to find a new car loan as fewer Americans shop for new cars.
The Dealertrack Credit Availability Index tracks how difficult it is to qualify for all types of car loans. It increased in June, meaning that borrowers had an easier time qualifying for car loans last month. Kelley Blue Book’s parent company, Cox Automotive, publishes the index.
Related: Is Now the Time to Buy, Sell, or Trade in a Car?
Lenders were more willing to approve applications — the approval rate for loans increased by 70 basis points. They were also more willing to work with subprime buyers (those with credit scores under 620), increasing the subprime approval rate by 10 points.
Lenders accepted lower down payments, with the average down payment decreasing by 40 basis points.
Related: Lender Report Spike in Auto Loan Refinancing
The share of loans with terms longer than 72 months grew by 80 basis points. Longer loans can help decrease monthly payments, but keep consumers in debt for longer.
