- Auto credit remained relatively easy to access in January, with 71.8% of applications approved.
- Lenders agreed to longer terms and more negative equity.
It remained relatively easy to qualify for a car loan in January, with lenders approving 71.8% of applications.
The Dealertrack Credit Availability Index measures the difficulty of qualifying for all types of car loans. It sits 5% higher than a year ago, making the market easier for borrowers.
Kelley Blue Book parent company Cox Automotive publishes the index.
Related: Is Now the Time to Buy, Sell, or Trade-In a Car?
Approval rates were slightly down from December but remained fairly high by historical standards. The captive lenders owned by automakers remained the most likely to extend credit.
The share of subprime loans – those to borrowers with credit scores of 620 or under – increased from 15% to 15.7%. That’s a shift. Subprime loans had been fading after a pair of lender bankruptcies rocked the market in 2025.
Lenders asked for slightly higher down payments (13.4% of loan value, up from 13.3% in December). They were more likely to extend a loan of 72 months or longer – a move that can lower monthly payments but keep borrowers in debt longer.
Lenders were more likely to take on a loan with negative equity in January. That can help consumers afford new cars, with the average new car price cresting $50,000 late in 2025. But it’s another move that increases long-term borrowing costs.
Car shoppers should carefully evaluate the total cost of ownership when evaluating loan offers.
