Auto Credit Loosens in September Despite Wider Yield Spreads
The Dealertrack Index ticked up in September, signaling easier financing for car buyers even as lenders widen yield spreads to manage risk.
If you're shopping for a car loan right now, the market is moving in your favor — at least a little. The Dealertrack Credit Availability Index climbed in September 2025, extending a recovery after a brief tightening in August. That upward move matters because it reflects real shifts in what lenders are willing to do.
Approval rates moved higher, the subprime share of loans grew, and loan terms stretched out. All three of those signals point the same direction: lenders are opening the spigot, not closing it. More buyers are getting approved, including borrowers with shakier credit histories who often get shut out when conditions tighten.
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But here's the catch you need to watch. Yield spreads widened at the same time. That means lenders are charging more relative to benchmark rates to compensate for the added risk they're taking on. They're growing the book, sure — but they're pricing in a cushion. For borrowers, that could translate into higher interest costs even when approval odds look better on paper.
The bigger picture here is a balancing act playing out across the auto lending space. Lenders want volume, but they're not throwing caution out the window. The net result is a market that's technically more accessible than it was a month ago, without being a wide-open free-for-all. If you've been sitting on a car purchase waiting for conditions to ease, September's data says the window is cracking open — just don't expect rock-bottom rates to come with it.
Continue reading at Cox Automotive Inc.
