- The auto industry’s major measurement of credit availability hit its highest point in more than a decade in June.
- Credit is relatively easy to come by right now, but car shoppers need to pay careful attention to what they’re signing up for.
It hasn’t been this easy to qualify for a car loan in more than a decade.
The Dealertrack Credit Availability Index tracks how difficult it is to qualify for all types of car loans. Last month, it hit its highest number since December 2015. Higher numbers mean easier credit access. 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 approved 73.8% of applications in June. They accepted an average downpayment of 13.2% — a figure that has stayed close to flat through most of 2026. Last year, the average down payment was 13.7%.
The average rate rose slightly to 10.98%. Rates may rise further later in the year. The Federal Reserve held rates steady at its most recent meeting, but some members of the board expect to raise them later in 2026.
The share of loans given to subprime borrowers (those with credit scores of 620 or below) fell to 16.6%. It reached 19.5% in March.
Two measurements, however, signal continued affordability struggles for car shoppers.
The share of loans with terms of 72 months or longer reached an all-time high of 31.1%.
Fifty-seven percent of borrowers folded some negative equity from an old loan into their new loan, meaning they purchased a new car before paying off the car they traded in. That figure has been declining from a high of 59.2% since March, but remains an alarming signal to economists.
Car shoppers should read loan offers carefully and understand not just the monthly payment they’re signing up for, but the total cost of a loan over time. Measures like longer loan terms can lower monthly payments but increase your cost over time.
