Demand for vehicle loans jumps

The demand for automotive loans was 14.4 per cent higher in September than in the same month of the previous year, according to new figures from credit bureau Centrix.

Keith Mclaughlin, managing director, notes the number of inquiries for such lending remains strong “despite a recent dip in new vehicle sales registrations following the recent changes to the clean car discount”. 

The increase follows a 19 per cent year-on-year rise in new automotive loan applications in August.

Centrix’s latest credit indicator report also shows vehicle loan arrears edged back to 5.9 per cent of active credit accounts in August but are still up by 29 per cent from the same month a year ago.

Mclaughlin, pictured, adds that overall consumer arrears fell in August to 11.62 per cent of the active credit population compared, which was down from 11.7 per cent in July. 

“Year-on-year, consumer credit demand is up eight per cent,” he adds. “As demand for unsecured credit continues to grow, credit card applications have risen 13 per cent year-on-year, and personal loan inquiries sit above 2019 levels. 

“We’re continuing to see signs of a housing market pick up, as new mortgage lending is up three per cent from pre-pandemic August 2019. 

“There’s a modest increase on borrowing figures from August 2022, climbing two per cent year-on-year.”