Arrears on vehicle loans flat

The percentage of people behind on their vehicle loans in February came in at 5.7 per cent, which was slightly up from 5.6 per cent in January.

However, the February figure is unchanged from the same month of 2024, according to new figures from credit bureau Centrix.

The company’s latest credit indicator report also shows credit card arrears improved to 4.5 per cent in February, while the proportion of households behind on retail energy payments also fell to 4.5 per cent.

Centrix notes the numbers for those categories were four and seven per cent lower year-on-year respectively.

Overall, the number of New Zealand consumers behind on payments dropped in February to 480,000, down 11,000 month-on-month and equal to 12.4 per cent of the credit active population.

Centrix says arrears are one per cent down year-on-year, marking the second consecutive month in which they have been lower than a year ago, indicating early signs of a gradual credit cycle recovery.

The number of consumers who are 30-plus days in arrears has also improved by 7.3 per cent year-on-year to 175,000. 

The report also shows non-mortgage new lending, which includes vehicle or personal loans, was up 3.9 per cent in the February quarter compared with the same period a year ago.

At the same time, the report shows demand for automotive loans is down 6.9 per cent.