Auto credit access just reached its highest level since November 2015.

At first glance, that sounds like good news for dealers and customers.

Approval rates are improving. Captives, banks and finance companies are extending more credit. Subprime participation is increasing.

But look underneath the headline.

More than 31% of loans now extend beyond 72 months, negative equity is present in 57% of transactions measured by the index, and the average contract rate actually increased to nearly 11%.

So are consumers becoming more financially capable of purchasing vehicles?

Or are lenders simply finding increasingly creative ways to make expensive vehicles fit into monthly budgets?

There is an important distinction between improving access to credit and improving affordability.

If the solution requires longer terms, more negative equity and expensive borrowing, maybe we are not fixing affordability at all.

Maybe we are financing around it.