Cox Automotive reports that Dealertrack's Credit Availability Index increased 0.5% from June to 105 in July. The index was 7% above July 2025 and at its highest level in roughly a decade.
The index combines approval rates, subprime share, yield spreads, loan-term length, negative equity, and down payments. It is an attributed industry measure of whether access is generally improving or tightening, not an approval forecast for an individual applicant.
Approval rates improved, but rate relief was narrow
The overall approval rate in Dealertrack's dataset rose to 74%, up 37 basis points from June and unchanged from a year earlier. The average contract rate fell eight basis points to 10.90%, while the yield spread narrowed to 6.57%.
Cox says most of the contract-rate decline came from captive finance companies; rates at banks, credit unions, and finance companies edged higher. The aggregate change therefore does not mean every borrower or lending channel received a lower rate.
Long terms and negative equity remained elevated
The share of loans with terms longer than 72 months held at a dataset-record 31.1% for a second month. Cox also reports that 56.8% of loans in its measure involved negative equity, down from June but still above the year-earlier share.
A longer term can reduce the monthly payment while raising total interest and keeping the balance outstanding for more of the vehicle's life. Rolling an existing shortfall into a new loan increases the amount financed and can extend the time before the borrower builds positive equity.
How buyers can compare offers
Ask several lenders for written offers covering the same amount and term.
Compare APR, total interest, amount financed, total of payments, and any required products or conditions.
Keep the vehicle's out-the-door price separate from financing and trade-in discussions.
Check the payoff amount on an existing loan before deciding whether to trade or sell.
Primary references
Sources and methodology
MyFavi links to the original material so you can verify the details, reporting period, and later updates.
Dealertrack figures are attributed industry data and may be revised. This article is general market information, not a prediction of approval, a loan offer, or financial advice.
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