Vehicle-loan demand slides

The number of applications for vehicle loans fell by 8.4 per cent last month when compared with January 2024, according to the latest figures from Centrix.

Overall consumer credit demand started 2025 one per cent lower than the same period a year ago, with personal loans dropping by 5.3 per cent and buy now, pay later products slipping 2.7 per cent.

In contrast, demand for credit cards was up 22.4 per cent year-on-year and mortgage applications rose 9.9 per cent.

Centrix’s latest credit indicator report also shows the proportion of vehicle loans in arrears hit 5.4 cent in December 2024.

It came as the number of people behind on credit repayments climbed 6,000 month-on-month to 470,000 in December.

Centrix notes the current arrears level is 1.3 per cent higher than a year ago but the rate of increase has moderated in recent months. 

In particular, the number of consumers who are 30-plus days in arrears improved by 5.4 per cent year-on-year, 

Keith McLaughlin, pictured, managing director of Centrix, says: “Following the festive season, we’ve observed the seasonal uptick in consumer arrears as people lean on credit products to help celebrate the end of the year.”

He adds that with a backdrop of global uncertainty and a challenging local environment, “at this stage it’s unclear what 2025 has in store for Kiwi households and businesses”.