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vedaauto.com Automotive Credit Demand Index – November 2009
16 December 2009
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.
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.
-Ends-
Source: Veda Auto Analysis 2009
* The Veda Auto.com credit indices was completed using August 2006 as starting reference month. Commentary may be provided by referencing anonymised data cubes for year- on-year analysis (YOY). Data analysed is drawn by referencing anonymised credit enquiry data from the Veda Advantage Consumer Credit Reporting Database (the Database). The Database includes application data from all significant lenders in Australia and distinguishes between consumer and commercial applications for credit. The Database records relevant to this study:
- sex of credit applicant
- age of credit applicant
- residential address of applicant (Post Code)
- Amount of credit application.
Demand indices reflect credit enquiries and not approved credit applications. Data is referenced and checked against Federal Chamber of Automated Industries (FCAI) public VFacts data to determine credit demand correlation to new vehicle total sales. The vedaauto.com Used Car Indicator is a unique data set, new to the Australian market and tracks significant trends around credit demand for used vehicles over the calendar year.
Media Information:
Sally Robertson (02) 9492 1033 or mobile: 0400 927 003 email: Sally@launchgroup.com.au
About Veda Auto www.vedaauto.com. Twitter page: http://twitter.com/VedaAuto. Veda Auto is a business division of Veda Advantage Information Services and Solutions Limited ABN 26 000 602 862. Veda Auto delivers vehicle information solutions to motor dealers, insurance, finance companies and consumers. Veda Auto aims to help reduce fraud and improve transparency in the sale and purchase of second hand vehicles in Australia, to the benefit of both businesses and consumers alike. Veda Auto sources data from the National Vehicle Information System (NVIS) and Government databases to compile the most comprehensive report possible (as based on available datasets) on the history of a motor vehicle.
*The National Vehicle Information System (NVIS) holds information on millions of vehicles that have been registered in Australia. It is the only comprehensive vehicle history database in operation in Australia. The NVIS is maintained and operated by Veda Advantage Ltd, the owner of Australia's leading consumer and commercial credit information bureau.
About Veda Advantage www.vedaadvantage.com.
Veda Advantage has been at the forefront of the information services industry for many decades. Issues such as privacy, data security, fraud and business intelligence are part of our commercial landscape. Veda Advantageholds the country's largest database of credit files for more than 14.5 million credit-active Australians. The vast majority of applications for credit in Australia are checked against the files held by Veda Advantage - providing businesses with the information and knowledge to assist them in making informed decision in customer acquisition and credit risk management.
DISCLAIMER
Purpose of Veda Advantage media releases:
The information in this release is not intended to provide guidance or commentary as to Veda Advantage's financial position nor does it constitute legal, accounting other professional financial advice. The information may change (based on the datasets available) and Veda Advantage does not guarantee the currency or accuracy of its sourced data.
To the extent permitted by law, Veda Advantage specifically excludes all liability or responsibility for any loss or damage arising out of reliance on information in this release and the data in this report, including any consequential or indirect loss, loss of profit, loss of revenue or loss of business opportunity.
