Australian Car Loan Demand Continues To Slide

Australian Car Loan Demand Continues To Slide

The slide in car finance declined during April as more mature buyers returned to car showrooms, despite the support, business applications continued to fall, after undergoing a spending spree at the end of last year.

Business credit inquiries dropped by 10 per cent, driving over all demand down by 4 per cent, compared with the same month in the previous year, the fourth consecutive monthly fall.

However private buyers, and in particular retirees returned to the market, helping to make up the difference according to new data released by Veda Auto Show

“Australians aged 65 and over are much more likely to purchase a car than the same time last year, with 11 per cent more credit applications in April,” said David Scognamiglio, the head of Veda Auto.

The decline during April was by far the smallest so far this year.

“This is a reasonable sign of recovery for personal automotive sales given that government incentives led demand in this sector 12 months ago,” Mr Scognamiglio said.
Despite demand rebounding amongst reitrees, younger buyers continue to form the core demand in the market.

“The 25 to 44 year-old demographic remains the most likely to purchase a car in the next six months, with 55 per cent of inquiries coming from this age group,” Mr Scognamiglio said.