Vehicle affordability and credit access improved in July in a positive sign for the auto finance industry following months of credit tightening as captives reclaimed lost market share.
The number of median weeks of income needed to purchase a vehicle dropped to 42.3 in July, according to Cox Automotive. Credit access, meanwhile, increased 0.2% sequentially to 97.2, according to Dealertrack.
The shift comes as captives reclaimed market share in the second quarter. Captives held 51% of market share, up from 37% in Q2 2022, according to TransUnion.
In this episode of the “Weekly Wrap,” Editor Joey Pizzolato, Deputy Editor Amanda Harris and Associate Editor Johnnie Martinez II discuss the top stories for the week ended Aug. 18, and what to expect in the week ahead.
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Auto Finance Summit, the premier industry event for auto lending and leasing, returns October 29-31 at the Bellagio Las Vegas. To learn more about the 2023 event and register, visit autofinance.live/afs/.
