MENU
SEARCHOverall April conditions didn’t benefit the consumer, especially those presenting more risk.
A bright spot came in a yield spread decrease of 54 basis points, pointing to lower interest rates for borrowers.
Pixabay/Raten Kauf
Though automotive loan approval rates rose slightly in April, overall credit access was flat and consumer stress signals increased.
Cox Automotive observed a 20 basis-point bump in loan approval rates month-over-month. The subprime share, though, fell 280 basis points, showing that lenders exercised more caution in that segment.
Meanwhile, more auto borrowers stretched their payoffs over extra-long loan terms as the share of loans longer than 72 months rose by 130 basis points. And the portion of loans in negative equity increased slightly, by 10 basis points.
The average down payment percentage was flat at about 15%.
A bright spot came in a yield spread decrease of 54 basis points, pointing to lower interest rates for borrowers.
Auto credit access tightened in most channels and was mixed across lender types, Cox said.
LEARN MORE: Auto Borrowers Stretch Further
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.
Read More →
Solving mismatched payment quotes can boost sales, profits
Read More →
Data reflect growing finance activity on the extreme ends of credit risk scale
Read More →
The amounts owed on under-water trade-ins reach new highs.
Read More →
Though many auto consumers are finding it challenging to trade, dealers can leverage conditions to help them get over the hump.
Read More →
Recent patterns show good credit helps navigate high interest rates as highly leveraged consumers sink further.
Read More →
