Cox Automotive says its Dealertrack Credit Availability Index rose for a fourth consecutive month in August to 105.3, its highest level since November 2015. The index combines approval rates, borrower mix, interest-rate spreads, loan terms, negative equity and down payments; a higher reading means credit is more available, not necessarily cheaper.
The overall approval rate increased to 73.9%, its fifth monthly gain, but remained below the 74.4% rate recorded a year earlier. The share of loans to subprime borrowers rose to 16.6%, up from 13.6% in August 2025.
What the record says
Borrowing costs still moved higher. Cox reports that the average auto-loan contract rate rose nine basis points in August to 10.99%, while the five-year Treasury yield reached 4.38%, its highest reading since January 2025.
Loan structures also stretched. A record 31.3% of auto loans had terms longer than 72 months, up from 25.5% a year earlier. The share of loans involving negative equity rose to 57.4%, and down payments averaged 13% of the deal—the lowest share since October 2022.
Before signing, ask for the written out-the-door price, APR, amount financed, exact term, monthly payment and total of payments. Compare at least one bank or credit-union offer with dealer-arranged financing using the same vehicle price, down payment and term. A lower payment is not a valid comparison if it comes from adding months or rolling in more debt.
What dealers and customers should know
What this means for shoppers: a lender may approve a deal by extending the term, accepting more negative equity or requiring a smaller percentage down. Those features can make the first payment look manageable while increasing total interest and extending the period when the loan balance may exceed the vehicle's value.
If a trade has negative equity, request that its payoff, trade allowance and the amount carried into the new loan be shown separately. Consider whether keeping the current vehicle longer or bringing additional cash would reduce the amount financed without draining emergency savings.
Why it matters
August's improvement is good news for shoppers who were previously unable to obtain approval, but it is not evidence that vehicles or loans became more affordable. The safest use of wider credit access is to compare complete loan costs and choose the shortest term that fits a realistic household budget.
AI-assisted reporting disclosure
This article was researched and generated with AI-assisted systems using the direct references listed below. Dealership Tech Report applies automated accuracy and risk checks, but recalls, investigations, incentives and market conditions can change. Verify time-sensitive details with the cited primary source before acting.
This report separates confirmed source facts from editorial interpretation. Offers, rates, tax treatment, prices and eligibility can change and may vary by customer, vehicle and location; verify current terms before quoting or making a purchase decision.
Cited references
- Cox Automotive Dealertrack Credit Availability Index — September 10, 2026 — Direct reference; development dated Sep. 15, 2026
- FTC guide to financing or leasing a car — Supporting direct reference
- CFPB auto-loan shopping worksheet — Supporting direct reference