Automotive arrears climb

Missed payments on car loans have edged up and the demand for vehicle finance has also increased, according to the latest report from credit bureau Centrix.

It notes the number of credit accounts that were in arrears at the end of April fell month-on-month for most financial offerings, except for vehicle loans.

Arrears in the automotive space have risen to 5.2 per cent of consumers who have loans, with the figure also up from 3.6 per cent in the same month a year ago.

Overall, consumer arrears fell 0.5 per cent month-on-month to 11.3 per cent of the active credit population, the equivalent of 411,000 consumers. 

This included late payments for credit cards falling to 4.7 per cent.

Centrix adds that demand for new credit products increased year-on-year in May, led by an upswing in applications for credit cards, automotive and personal loans, and energy utilities.

The change for automotive loans was an increase of 9.3 per cent, which was only eclipsed by a 25.1 per cent jump in people wanting credit cards.

Meanwhile, the demand for buy now, pay later products and mortgage lending slumped 3.8 per cent and 13.3 per cent, respectively.