Vehicle loan inquiries rise 4.5%

The demand for automotive loans is 4.5 per cent higher than a year ago, according to new figures from credit bureau Centrix.

Its latest credit indicator report shows overall consumer credit inquiries are six per cent lower than last year on a three-month rolling basis.

However, the number of requests for mortgage and personal loans joined the automotive segment in being higher than a year ago.

Centrix notes mortgage inquiries were up 15.6 per cent year-on-year and personal loan demand rose by 5.1 per cent.

New non-mortgage lending increased 2.9 per cent during the August quarter, primarily supported by motor vehicle finance, while personal lending has remained broadly stable in recent months.

Centrix’s report also shows vehicle loan arrears increased to 5.4 per cent of credit accounts in August, up from 5.1 per cent a year earlier.

Total consumer arrears among New Zealand borrowers were largely unchanged at 10.74 per cent of the credit active population, with 424,000 people behind on repayments. 

Company liquidations remain 14 per cent higher than a year ago on a rolling 12-month basis, with 3,105 liquidations recorded during the past year. 

New company registrations increased six per cent to 61,900 during the same period, while company closures rose two per cent to 51,700.

Centrix notes the latest monthly figures were lower than a year earlier. In August, 223 companies were placed into liquidation, down from 248, while total company insolvencies moved down from 242 to 232.