Did Used-Car Credit Just Loosen While New-Car Credit Got Tighter?

If you’re watching the finance side of auto retail right now, something subtle but fascinating just happened in the data.

According to Cox Automotive’s September Credit Availability Index, overall access barely moved — but the composition flipped:

• Used-vehicle loan access actually loosened, with banks stretching terms and easing down-payment requirements.

• New-vehicle loan access tightened, especially at captive lenders tied to OEMs.

That means: in a single month, the money got a little easier for used buyers and a little tougher for new.

Why that’s interesting:

• Early-October rate snapshots show used APRs dipping to ~14.1%, while new-car APRs crept up near 9.7% — the spread matters when monthly payments drive decisions.

• Captives are clearly pulling back, even as banks open the door a bit wider.

• And it’s all happening while negative equity hits record levels — nearly 1 in 3 trade-ins underwater, average shortfall over $6,900.

So what we’re seeing is a quiet credit divergence that could reshape deal flow for Q4 — not through pricing, but through who can get approved where.

This isn’t a prediction. It’s an early pattern.

But if you track F&I trends, used-side approval rates ticking up while captives squeeze could be one of the more under-discussed storylines of the fall.

Sources:

Cox Automotive Credit Availability Index (September 2025), Auto Market Weekly Summary (October 13, 2025), Edmunds Q3 Negative Equity Report, S&P Global Auto ABS Tracker.