BANDON, Ore. — Apparently, after gaining ground for several months, the share of auto loans receiving approval has now begun to drop, CNW Research discovered in its latest analysis.

However, on the brighter side, consumers appear to believe that credit is loosening, and this is driving those with lower FICO scores into the market to get an auto loan.

In June, 88.9 percent of all loan applications from prime vehicle shoppers were approved. In August, this figure climbed to 91.7 percent. However, in September, the statistic declined to 88.4 percent, and this trend has continued into October. During the opening weeks of this month, approvals dropped to 86.2 percent.

"Similar patterns were seen in near and subprime categories," pointed out Art Spinella, of CNW Research.

"Excluding leases and personal loans, those being financed through a dealership or financial institution hit a high-water market in August at 84.7 percent for prime customers and 71.6 percent for near-prime. On the subprime-borrower side, this category has apparently seen declines every month since June, Spinella explained.

"Better than a third of the rejections, however, can be traced to people coming to market with poorer FICO scores now believing they can get an auto loan," he noted.

"The other two-thirds of rejections, however, would have been approved in August," Spinella added.

The company classifies prime as 750-plus FICO, near-prime falls between 620-749 and subprime is considered below 620.

CNW's breakdown of approval trends:

June
Prime: 88.91 percent
—finance only: 81.36 percent
Near-Prime: 81.72 percent
—finance only: 70.23 percent
Subprime: 19.76 percent
—finance only: 8.51 percent

July
Prime: 89.61 percent
—finance only: 81.52 percent
Near-Prime: 82.46 percent
—finance only: 70.17 percent
Subprime: 19.93 percent
—finance only: 8.38 percent

August
Prime: 91.74 percent
—finance only: 84.66 percent
Near-Prime: 83.07 percent
—finance only: 71.59 percent
Subprime: 18.38 percent
—finance only: 7.61 percent

September
Prime: 88.41 percent
—finance only: 82.43 percent
Near-Prime: 81.11 percent
—finance only: 68.63 percent
Subprime: 16.52 percent
—finance only: 7.09 percent

October (through 15th):
Prime: 86.22 percent
—finance only: 81.48 percent
Near-Prime: 78.93 percent
—finance only: 66.54 percent
Subprime: 14.38 percent
—finance only: 6.81 percent