16 December 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. 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. 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.
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