Auto credit access hit its best numbers since June 2022. As of January 2026, car loans were easy to find, and credit access continued to improve in February 2026, according to the Dealertrack Credit Availability Index.
Cox Automotive, Kelley Blue Book’s parent company, publishes the index. Here are key takeaways from the latest report:
- The overall credit index rose to 101.3, indicating that more lenders were willing to offer car loans.
- Approval rates fell to 70.9%, down 60 basis points from January. Although credit availability was up, fewer people were approved.
- Loans to subprime borrowers went up to 17.5%. Lenders were willing to take chances on riskier borrowers, which is higher than normal for this time of year.
- Loans became more expensive as the yield spread rose from 7.14 to 7.53 and the average contract rate rose from 10.9% to 11.2%.
- More people are choosing loans of 72 months or longer, likely because they want smaller monthly payments. This is now the highest share of extended-term loans recorded.
- Negative equity is at an all-time high, with 58% of borrowers owing more than their cars are worth.
- The average down payment increased from 13.4% in January to 13.6% in February; however, it is down from last year.
While it technically became easier to get a car loan in February 2026, loans also got pricier, more people with lower credit got approved, and car loans stretched out longer than ever, likely due to the high cost of a new car.
