November 2025 auto credit snapshot
The Dealertrack Credit Availability Index rose to 99.1 in November, its highest level of 2025 and best since October 2022. The index gained 1.1 points month over month and 4% year over year, extending the loosening trend that began in late summer 2024.
Key drivers
- Approvals: Approval rate climbed to 73.6% (+1.6 pp MoM; +1.0 pp YoY).
- Pricing: Yield spread narrowed 56 bps to 6.80 as average contract rates fell 53 bps to 10.5%, despite a small uptick in the 5-year Treasury (to 3.68%). Spread compression was the primary driver of the index gain.
- Risk posture: Subprime share fell to 14.3% (-80 bps MoM; +200 bps YoY). Lenders also trimmed very long terms and nudged up down payments.
Loan structure and risk metrics
- Share of terms >72 months: 27.1% (-40 bps MoM; still +330 bps YoY).
- Borrowers with negative equity: 52.8% (-140 bps MoM; +110 bps YoY), among the lower shares this year.
- Average down payment: 13.4% (up from 13.3% in October; 1 pp below November 2024).
Channel performance
- Broad-based gains, led by all-new, then all-used; franchised used and certified pre-owned also strengthened.
- Non-captive new was comparatively steady but edged higher.
- Year over year, the largest improvements were in franchised used and all-used; non-captive new also improved, followed by CPO, independent used, and all-new.
Lender performance
- Month over month: Captives led (+1.7%), credit unions (+1.1%), auto-focused finance companies (+0.6%), banks (+0.1%).
- Year over year: Banks and auto-focused finance companies loosened the most, with credit unions improving; captives were more measured versus last year but still constructive.
What it means
- For consumers: Financing is generally cheaper and easier than earlier in the year, especially in new and used segments with the strongest gains. Slightly higher down payments and fewer very long terms may lift monthly payments for some.
- For lenders: The market is opening while risk controls stay in focus. Lower subprime share, shorter terms, and modestly higher down payments point to cautious underwriting alongside growth ambitions.
Outlook and methodology
If spreads remain tight and approvals hold, the index could stay elevated, though lenders are closely tracking risk indicators. The Dealertrack Credit Availability Index aggregates six components—approval rates, subprime share, yield spreads, loan term length, negative equity, and down payments—to gauge whether credit is loosening (higher values) or tightening (lower values). Cox Automotive publishes the index around the 10th of each month.
