Vehicle loan enquiries drop

Demand for vehicle loans has fallen by 23.7 per cent year-on-year with the decline blamed on the continuing slump in sales of new electric vehicles (EVs).

The latest figures from credit bureau Centrix show the automotive sector suffered the biggest drop in consumer credit demand, which is “reasonably flat compared to last year”.

Enquires for mortgages fell 3.5 per cent year-on-year, while other categories listed by Centrix, such as credit cards, retail energy and personal loans, increased.

The Centrix July Credit Indicator also shows arrears on consumer credit for vehicles rose slightly in June when compared with the same month of last year, with 5.6 per cent of such borrowers behind on payments.

The overall number of consumers in arrears was 465,000 in the year to the end of June, down by 9,000 from the previous month.

As for businesses, the report shows company liquidations increased from 176 in June 2023 to 216 in the same month this year, a jump of 19 per cent. The construction and property industries accounted for the majority of these.