- It hasn’t been this easy to qualify for a new car loan since 2015.
- That doesn’t mean everyone should — borrowing costs are rising.
Lenders approved almost 74% of new car loan applications in August, as a major measure of credit availability hit an 11-year high.
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 November 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?
2026 has been a good year for car shoppers in some ways. Lenders have approved more loans than the month before each of the last five months. They ask for an average down payment of just 13% of the car’s value.
But it’s a challenging year in others. Borrowing costs keep rising. The share of loans with negative equity (buyers folding debt from an old car loan into a new one) rose to 57.4%, meaning that most borrowers no longer pay off their car.
The share of loans with terms of 72 months or longer rose to 31.3%. Longer loan terms can drive down monthly payments but leave the borrower paying more in the long run.
