Auto-credit access improved for a fifth consecutive month in September, according to Cox Automotive's Dealertrack Credit Availability Index. The index rose 1.9% to 107.1, its highest level since April 2015, and the overall approval rate reached 73.9%.
The improvement did not mean loans became cheap or low-risk. Dealertrack says the average contract rate increased to 11.22%, a record 31.8% of loans ran longer than 72 months, and 57.8% of financed transactions involved negative equity.
Verified results
Dealertrack says every component of its index contributed to September's increase. A larger subprime share was the biggest factor, followed by a narrower yield spread. Credit access improved across every tracked channel and all four lender types; used-vehicle channels and several lender categories reached series highs.
The average contract rate rose 23 basis points to 11.22%. The share of loans with terms longer than 72 months increased 60 basis points to 31.8%, while average down payments fell to 12.8% of the transaction—the lowest level since September 2022.
Why it matters
More approvals can bring customers back into the market, but September's improvement leaned on structures that reduce the immediate payment or cash requirement while extending risk. A long term, small down payment and rolled-in negative equity can keep a borrower underwater longer and make a later trade, sale or income shock harder to absorb.
The index measures access, not affordability. A higher reading does not mean the customer received a lower APR, borrowed less or secured a safer ownership plan.
What dealerships should do now
F&I and desk managers should review approval rate together with APR, term, amount financed, advance, cash down and negative equity. Track how often deals longer than 72 months solve a temporary payment objection versus creating a contract that conflicts with the customer's expected ownership period.
Present at least one shorter-term comparison when available and show the payment, total of payments and amount carried from a trade separately. Stores should also watch lender callbacks, funding friction, first-payment performance where available and product suitability without using national borrower data to stereotype an individual applicant.
What shoppers should do
Treat approval as the start of the comparison. Ask for the written out-the-door price, APR, amount financed, term, monthly payment and total of payments. Compare dealer-arranged financing with at least one bank or credit-union offer using the same vehicle price, down payment and term.
If a trade has negative equity, require the payoff, trade allowance and amount added to the new loan to be shown separately. A payment that fits only because the loan runs beyond six years may cost more overall and leave less flexibility before the next trade.
AI-assisted reporting disclosure
This article was researched and generated with AI-assisted systems using the Cox Automotive Dealertrack report listed below. Dealership Tech Report applies automated accuracy and risk checks, but the index and component measures are proprietary commercial data. Verify actual lender terms and the complete contract for the specific transaction before acting.
The Dealertrack Credit Availability Index is a proprietary national measure built from six factors. It does not publish an approval, rate or term available to every applicant, and its national results may not match one store, lender, credit tier or local market. A larger subprime share and more extended terms contributed to the higher September reading, so the index should not be described as proof that loans became cheaper.
Cited references
- Cox Automotive — September 2026 Dealertrack Credit Availability Index — Commercial auto-credit analysis; published Oct. 13, 2026