Automotive arrears increase

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

It says the number of personal loans that were in arrears at the end of March exceeded 10 per cent for the first time since February last year, reflecting a four per cent year-on-year increase.

However, Centrix notes arrears in the automotive space only rose from 5.7 per cent in February this year to 5.8 per cent in March and remain lower than at the same stage of 2024.

Credit card arrears also increased slightly to 4.7 per cent but were three per cent lower year-on-year.

Overall, the number of consumers in arrears increased to 489,000 in March, up 9,000 from the previous month, representing 12.6 per cent of the credit-active population. 

Centrix notes that 174,000 consumers are more than 30 days past due, with 74,000 of them exceeding 90 days in arrears.

Its credit indicator report shows demand for new credit products increased 2.4 per cent year-on-year in March, led by applications for credit cards rising 23.8 per cent and mortgage inquiries climbing 17.8 per cent.

The demand for automotive loans fell 3.6 per cent over the same period and the number of applications for buy now, pay later products slipped 6.5 per cent.