vedaauto.com Automotive Credit Demand Index ? November 2009

vedaauto.com’s monthly Automotive Credit Demand Index*, released today, reveals an overall 2.2% increase in credit demand for the automotive market in November compared to October 2009. However, credit enquiries for used vehicle purchases in November dropped 8.4% over the previous month, and also saw a year-on-year decline of 23.3% over November 2008.

The vedaauto.com Credit Demand Index provides details on monthly automotive credit applications made by consumers and businesses, offering insights into auto demand in Australia.

Overall growth in credit demand during November was driven by an increase in commercial loan applications for new cars, which were up 13.4% over the previous month and up 33.4% over November 2008.

Head of Veda Auto, David Scognamiglio said credit demand for used cars has been impacted by consumers and businesses taking advantage of the Government’s stimulus package for new cars.   

“The next few months will provide a significant bellwether for the automotive industry. The intense activity around new vehicle purchases is likely to soften once the Government’s stimulus package ends on December 31, which could deliver the automotive industry a soft start to 2010. On the other hand, the interest in used vehicles may rebound in January 2010, which is consistently the peak month for used vehicle credit demand,” said Mr Scognamiglio.  

Additional data for November 2009:

• Consumer auto credit enquiries decreased 3.3% in November compared to October 2009, with the average credit amount decreasing slightly from $21,698 to $21,503.

• Commercial auto credit demand increased 13.4% in November compared to October 2009, and is up a significant 33.4% year-on-year. The average amount for commercial auto enquiries remained high at $46,076.

• Applications for auto credit among younger Australians (aged 18 to 24 years) in November declined 18.5% year-on-year, indicating that some young people may be having difficulties gaining credit this year, while others may be taking advantage of recent first-time home owner grants.

• ACT was the highest performing region in a November year-on-year comparison, increasing in automotive enquiries by 14.1% followed by SA which rose 5.1%. Credit demand also rose in the following states, VIC up 4.8%, NSW up 2.8% and QLD up 1.4%. Credit demand decreased in all other states and territories, WA fell 0.8%, NT fell 11.7% and TAS and dropped by 13%.

vedaauto.com data is compiled by assessing Veda credit applications, combined with National Vehicle Information System (NVIS) figures from the last three years.