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Auto credit hits decade high, approval rates climb to 74%
['Jaelyn Campbell', 'Jason Becknell']
CBT News
Auto credit access hits a decade high as Dealertrack’s index climbs to 105, driven by narrowing spreads and rising approval rates.
The overall loan approval rate climbed to 74% in July, up 37 basis points from June.
The average contract rate dropped 8 basis points to 10.90%, while the 5-year Treasury yield rose 12 basis points to 4.33%.
Negative equity share declined 23 basis points to 56.8%, a fourth straight monthly drop after peaking at 59.2% in March.
It remains up 269 basis points year over year and above every monthly reading recorded between 2015 and 2019.