Determining the bending-fracture limit, also referred to as local formability, is crucial for sheet metal forming. However, this is limited by existing methods such as the VDA-238-100 standard due to limitations in its failure criterion based on the punch load. This study addresses this limitation by proposing a quantitative crack-based failure criterion and investigating its relationship to the load-drop point. Along with surface and cross-sectional optical analyses, an integrated line-scanning system for the VDA-238 test is developed, and advanced high-strength steel (AHSS) grades are analysed with yield strengths ranging from 980 to 1500 MPa in both the rolling and transverse directions. The results showed that, while the load-drop point marks a rapid shift in the crack-propagation direction, the true onset of crack initiation occurs earlier, with different patterns for each AHSS and direction. For all the AHSS and directions tested, a crack depth exceeding 1 % of the sheet thickness occurs at 90 % of the switch-off stroke in the VDA-238 test, suggesting an empirical tendency toward microcrack growth for a more accurate evaluation of the local formability based on early cracks.