Credit availability for American car buyers improved last month, with loan approval rates climbing and more people taking longer-term loans, according to a July 10 analysis by industry expert Cox Automotive.
In June, the Dealertrack Credit Availability Index, which indicates whether access to credit is improving or declining, jumped to 104.6, the highest level in over a decade and the fifth straight monthly increase. Rising index values suggest it has become easier for consumers to secure auto loans. The index tracks various factors affecting auto credit access, including loan approval rates and the term periods.
The jump in index values was driven primarily by a “sharp recovery” in auto loan approval rates by lenders, together with the share of long-term loans among overall loans hitting an all-time high, the company said….