If you noticed more of your dealership teammates returning to potential car buyers with body language that indicated, “Yes! I got that deal bought,” the August reading of the Dealertrack Credit Availability Index might be part of the reason why.

Cox Automotive reported on Friday that auto credit access in August improved for the fourth consecutive month, reaching its highest level since November 2015.

The index came in at 105.3, representing an increase of 0.4% from July and 7.7% compared to August of last year.

Scott Vanner, a manager of economic and industry insights at Cox Automotive, explained what happened.

“The monthly gain reflected continued loosening in loan structures, including increases in negative equity and the share of long-term loans,” Vanner wrote in an analysis that accompanied the latest index.

“A higher subprime share also contributed, although it did not signal broader credit expansion. A modest widening in the yield spread was the only offset, absorbing about a quarter of those gains,” Vanner continued.

Cox Automotive tabulated that the overall loan approval rate rose to 73.9% in August, an increase of 20 basis points from July, marking its fifth consecutive monthly increase and the highest level in 12 months.

Even so, Vanner pointed out that the rate remained 50 basis points below the 74.4% recorded a year ago, and the monthly gains continued to narrow.

Vanner recapped that the rate increased 150 basis points in May and 220 in June before the monthly gains slowed to 10 basis points in July and 20 in August.

Meanwhile, Cox Automotive noticed the share of loans to subprime borrowers rose to 16.6% in August, an increase of 20 basis points from July. Vanner indicated it was the first increase in five months and ended the four-month pullback that followed March’s surge to 19.5%.

Year-over-year, the subprime share is up 300 basis points from 13.6%, according to Vanner, who also said, “The rebound was the single largest contributor to August’s index gain.”

Going deeper into why perhaps even more deals could have been bought at your store in August, Cox Automotive computed the yield spread widened 4 basis points (from 6.57% to 6.61%), giving back part of July’s 20-basis-point narrowing.

Vanner said the average contract rate rose to 10.99%, an increase of 9 basis points, while the 5-year Treasury yield rose to 4.38%, an increase of 5 basis points and its highest reading since January 2025.

Looking year-over-year, Vanner explained that the spread remained 26 basis points below the 6.87% recorded in August of last year and about 54 basis points below the 7.1% average since the start of 2023.

“The widening was the only drag on the August index,” Vanner said.

Next, Cox Automotive delved deeper into the details that dealerships and lenders might consider when communicating back and forth about a credit application, including:

—Term length: The share of loans with terms longer than 72 months rose to 31.3% in August, up 20 basis points and a record high in the dataset. It was the third consecutive month at or above 31%.

Vanner noted the share was up 580 basis points from 25.5% last August.

—Negative equity share: Cox Automotive determined the share of loans with negative equity rose to 57.4%, an increase of 60 basis points and the first increase in five months.

Vanner added it was the highest reading since April when it landed at 58.5%.

Vanner also mentioned negative equity remained up 390 basis points above the 53.5% recorded a year ago and above every monthly reading recorded from 2015 through 2019.

“The increase was the second-largest contributor to the August index gain,” he said.

—Down payment percentage: Cox Automotive found that down payments remained at 13% in August, unchanged from July and matching October 2022 as the lowest level in nearly four years.

The share was 60 basis points below the 13.6% recorded in August 2025, according to Vanner.

The Cox Automotive expert wrapped up his index discussion by touching on potential implications for consumers and lenders, beginning with the customers dealers and finance companies are trying to gain.

“The latest report suggests consumers relied more on longer terms and negative equity to complete purchases in August, with a record 31.3% of loans exceeding 72 months,” Vanner said. “Down payments remained at their lowest share since October 2022, and the share of loans with negative equity increased 60 basis points to 57.4%.

“These structures can reduce the immediate payment burden but increase total borrowing costs, extend the time borrowers remain underwater and limit their flexibility if circumstances change,” he continued.