Auto Loan Credit Access Ticked Up Again in September 2025
The Dealertrack index shows credit conditions loosening slightly, giving more buyers a shot at financing despite wider yield spreads.
If you've been eyeing a new or used car and worrying about getting approved for a loan, here's some mildly good news: auto credit got a little easier to come by in September 2025. The Dealertrack Credit Availability Index — basically a monthly scorecard for how freely lenders are handing out car loans — moved higher last month, continuing a recovery after a brief tightening in August.
The numbers behind the headline tell an encouraging story for borrowers. Approval rates climbed, more subprime buyers (that's people with less-than-stellar credit scores) got the green light, and loan terms stretched out a bit longer. Longer terms mean lower monthly payments, which can make that car payment feel a little less brutal — even if you end up paying more interest over the life of the loan.
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There's a catch, though, and it's one lenders are quietly sweating over: yield spreads widened in September. In plain English, that means the gap between what lenders charge borrowers and what it costs the lenders themselves to fund those loans got bigger. That's a signal that risk is creeping into the picture, even as banks and finance companies are technically approving more deals.
The overall picture is a balancing act. Lenders appear willing to grow their auto loan books and bring more consumers into the market, but they're keeping a close eye on risk management as economic conditions keep shifting. For everyday car shoppers, the practical takeaway is that your odds of getting financed — even with imperfect credit — are modestly better now than they were a month ago.
Continue reading at Cox Automotive Inc.
