Driving the news: Auto loan credit access hit its best level since October 2022 in November, with approval rates climbing to 73.6%.
For context: The Dealertrack Credit Availability Index rose to 99.1, after two consecutive months of declines.
Captive lenders led the charge, with credit availability up 1.7%, while banks barely budged.
But the share of subprime borrowers fell from 15.1% to 14.3%, showing lenders are still being selective about certain risks.
Why it matters: Higher approval rates and lower interest rates mean more deals are getting done at a time when dealerships need volume. The yield spread compression (basically the gap between what lenders pay for money and what they charge consumers) shrank significantly, passing savings on to buyers. That makes cars more affordable and should help move metal off lots.
Bottom line: The loosening credit environment should translate to more closed deals, but dealers relying on subprime volume are still working with one hand tied behind their backs in many cases.
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