Car loan values surge 25% to highest level on record in Q1 – BPFI
New figures out today show that car loan volumes and values reached their highest levels on record in the first quarter of this year.
The latest Banking & Payments Federation Ireland (BPFI) Personal Loans Report shows that the number of car loans rose by 21.5% year on year to 19,552, while the value of these loans increased by 25% to €259m.
The average car or auto finance loan increased by €366 to €13,267, BPFI added.
Today’s report also shows that personal loan activity grew across all categories including green and home improvement loans as well as loans for education, holidays and special occasions.
A total of 60,770 personal loans were drawn down, valued at €683m, in the first quarter of this year – an increase of 22.1% in volume and 24.1% in value year on year.
The average personal loan value rose by €177 year on year to €11,239.
BPFI said the number of green loans rose by 26.6% year on year to 1,531 while the value of green personal loans jumped by 29.3% over the same period to €35.1m.
It noted that the average green loan rose by €474 at €22,906 in the first three months of this year, more than twice the value of the average for all loans of €11,239.
Today’s report also reveals 15,372 home improvement loans were given out in the first quarter of the year, up 18.2% on an annual basis. These were valued at €198m 19.2% higher than the previous year.
The average home improvement loan increased by €116 to €12,886.
Meanwhile, a total of 25,846 loans for other purposes – including education, holidays and special occasions such as weddings – were drawn down, a rise of 25% in volume year on year, with values rising by 27.5% to €226m over the same period.
The average loan value for other loans increased by €170 to €8,725.
“Our latest figures reveal continued strong demand for personal loans, with Q1 2025 marking a new high for overall drawdown volumes and values,” Anthony O’Brien, Head of Sector Research & Analysis at BPFI said.
Noting that car loan volumes and values reached their highest level since the BPFI data series began in 2020, Mr O’Brien said the continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases.
He also said it is worth noting that personal loans are also used to finance second-hand car purchases.
Article Source – Car loan values surge 25% to highest level on record in Q1 – BPFI