Car finance figures plateau

The demand for vehicle loans remains flat while arrears on such agreements edged down to 5.4 per cent in June, slightly below the level recorded a year ago.

That’s according to the latest credit indicator report from Centrix, which shows the number of enquiries for automotive loans in June was up 0.7 per cent from the same month a year ago.

Overall demand for consumer credit rose 7.9 per cent year-on-year, led by credit card applications increasing by 15.4 per cent and personal loan enquiries up by 3.1 per cent.

As for consumer arrears, the number of individuals behind on payments fell by 7,000 in June to 478,000, or 12.4 per cent of the credit-active population. 

Keith McLaughlin, managing director, says there has been a broad slowdown in New Zealand’s economic recovery, persistent inflationary pressures and ripple effects from international tariffs.

“All factors that will shape future official cash rate decisions and influence national credit activity,” he adds. 

“The slight year-on-year improvement in arrears we’ve observed so far this year have plateaued, with figures now largely unchanged compared to the same time last year.”