Australian Car Loan Demand Still Well Below 2009 Levels

Australian Car Loan Demand Still Well Below 2009 Levels

Despite the recovery in car sales, Australian car loan demand has declined to below levels seen a year ago, and the up-tick in sales is painting a false picture of recovery.

According to new data released this week, the demand for auto finance suggests that recovery is on two tracks, with demand for new cars robust, whilst demand for second hand vehicles crashing as much as 49 per cent in February compared with the same month in the previous year.

The data, which was compiled by Veda Auto suggests that auto sales for both new and second hand vehicles is 9 per cent below the same period in 2009, as the economy was reaching rock bottom.

“We’re definitely at a lower base level, everything is still trending backwards a little bit ” the head of Veda Auto, David Scognamiglio, said.

Mr. Scognamiglio said he was encouraged that despite the decline in private demand, business demand had not fallen off a cliff as the Federal government tax breaks cease and the decline in lending began to take effect.

He added that it would be May before demand for auto finance exceeded the level it was at in 2009.