It grew easier to find a car loan in March.
The Dealertrack Auto Credit Total Loan Index tracks how difficult it is to qualify for all types of car loans. It increased in March, meaning borrowers had an easier time qualifying for car loans last month. Kelley Blue Book’s parent company, Cox Automotive, publishes the index.
The current credit climate is still challenging. The Federal Reserve has delayed a long-promised round of interest rate cuts, keeping rates much higher than usual.
Still, banks and credit unions approved more loans last month, and the share of subprime loans (those to buyers with credit scores of 620 or lower) increased.
Both new and used car prices have fallen in recent months.
Not all the news was good. The average down payment was unchanged and remains near an all-time high. Lenders approved shorter loan terms – a move that can keep monthly payments high.
The Conference Board Consumer Confidence Index increased by 6.3% in January, powered by views of the present situation jumping 9.6% and to the highest level since March 2020. Consumer confidence was up 8.3% year-over-year. Plans to purchase a vehicle in the next six months declined to the lowest level since April and were down year over year.
