Critical Shifts:
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Overall Auto Credit Access Reached Multi-Year Highs: The Dealertrack Credit Availability Index rose for a fifth consecutive month in September 2026 to 107.1—its highest level since April 2015—driven by broad loosening across all index components, including higher subprime loan shares and narrower yield spreads.
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Subprime Borrowers Led the Loosening in Credit: The subprime share of auto loans climbed to 17.4% (up 80 basis points month-over-month and 230 basis points year-over-year), serving as the single largest contributor to the index's growth while total loan approval rates reached 73.9%.
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Loan Term Lengths Hit Record Durations: Loans extending beyond 72 months hit a record high of 31.8%, marking the fourth consecutive month at or above 31%, as longer terms were increasingly used across all credit tiers and lender types.
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Rising Negative Equity and Lower Down Payments Increase Borrower Risk: Down payments dropped to a multi-year low of 12.8%, while the share of loans with negative equity increased to 57.8%, trading lower upfront monthly costs for higher overall borrowing expense and longer time spent underwater on vehicle value.
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Auto credit access improved for a fifth consecutive month in September, reaching its highest level since April 2015, according to the Dealertrack Credit Availability Index. The All-Loans Index increased 1.9% to 107.1 from 105.1 in August and was 9.4% higher than in September 2025.
Every component of the index contributed to the September gain. A higher subprime share was the largest contributor, followed by a narrower yield spread. The monthly gain also reflected continued loosening in loan structures, including a higher share of long-term loans and increased negative equity.
After climbing 170 basis points in June and 120 basis points in July, then holding flat in August, the overall loan approval rate rose 30 basis points to 73.9% in September, its highest level since August 2025. The rate was 20 basis points above the 73.7% recorded a year ago, and the increase came as applications fell slightly faster than approvals.
The share of loans to subprime borrowers rose to 17.4% in September, an increase of 80 basis points from August and the second consecutive increase. Subprime loan volume was little changed from August, so the higher share reflects fewer loans to other borrowers. Year over year, the share was up 230 basis points from 15.1%. The rise was the single largest contributor to September’s index gain.
The share of loans with terms longer than 72 months rose to 31.8% in September, up 60 basis points and a record high in the dataset. The increase was broad, with longer terms rising across all credit tiers and lender types. It was the fourth consecutive month at or above 31%. Year over year, the share was up 490 basis points from 26.9% in September 2025.
The share of loans with negative equity rose to 57.8%, an increase of 40 basis points and the second consecutive increase. Part of the increase reflects a larger subprime share of the borrower pool, since subprime borrowers carry far more negative equity, while the rest reflects modest increases across most channels. It was the highest reading since April’s 58.5%. Negative equity was 540 basis points above the 52.4% recorded a year ago and above every monthly reading recorded from 2015 through 2019.
Down payments slipped to 12.8% in September, down 20 basis points from August and the lowest level since September 2022. The decline was broad, with lower down payments across all channels and lender types. The share was 70 basis points below the 13.5% recorded in September 2025.
Consumers continued to use longer terms, smaller down payments and negative equity in September, with a record 31.8% of loans exceeding 72 months. These structures can make a purchase easier to fit into a budget, but the flexibility borrowers gain up front comes at the cost of flexibility later. Higher total borrowing costs, more time underwater and a larger balance relative to the vehicle’s value leave less room to sell or trade the vehicle if income, expenses or other circumstances change.
The September 2026 Dealertrack Credit Availability Index rose for a fifth consecutive month to 107.1, its highest level since April 2015. All six components contributed to the gain, led by higher subprime share and a narrower yield spread. The month also brought a record share of loans longer than 72 months and an increase in negative equity to 57.8%.
