In March 2026, the Dealertrack Credit Availability Index rose to 102.4, its best reading since June 2022. The All-Loans Index increased 1.3% from February’s 101.1 and is up over 6% from March 2025.
Even as yield spreads widened, the month’s improvement was broad-based across all channels and lender types, driven primarily by a significant expansion in subprime lending, a recovery in approval rates, and strong gains from banks.
The approval rate for auto loans rose to 70.8% in March, up 40 basis points (bps) from February, reversing a two-month declining trend. Approval rates remain down 180 bps from March 2025 (72.6%), even as most lenders continued to expand access broadly.
The share of loans to subprime borrowers increased by 200 bps month over month (from 17.5% to 19.5%) and is up 300 bps year over year. March’s reading of 19.5% is the highest level in the dataset since March 2020. This sustained expansion suggests lenders are increasingly comfortable extending credit to higher-risk borrowers.
The yield spread widened by 31 bps (from 7.53 to 7.84), while the average contract rate rose 50 bps (from 11.2% to 11.7%). The 5-year Treasury yield increased by 17 bps (from 3.68% to 3.85%). This widening spread represents less favorable pricing for consumers and may reflect lenders charging a premium to offset the increased risk from higher subprime lending and elevated negative equity.
The share of loans with terms greater than 72 months decreased by 50 bps (from 29.3% to 28.8%), breaking a three-month streak of increases, and is up 510 bps year over year. February’s 29.3% remains the all-time high in the dataset; at 28.8%, March’s reading is the second highest on record and continues to reflect ongoing affordability pressures as consumers opt for longer terms to manage monthly payments.
Overall, the March Dealertrack Credit Availability Index reflected continued improvement in auto credit access, with the headline index climbing to 102.4, its best level since June 2022. Individual metrics told a more complex story, however. Subprime lending reached its highest level since March 2020, approval rates recovered modestly, and banks posted the strongest monthly gain among lender types. Yet negative equity reaching another new high and widening yield spreads point to growing risk beneath the surface.
