The value of car loans “surged” by almost 40 per cent to a total of €189 million in the third quarter of 2023, fuelled by continued growth in electric car sales that now account for one in five new cars licensed in Ireland.
The latest Banking and Payments Federation Ireland (BPFI) personal loans report highlights that in the third quarter of 2023, the number of car loans rose by 25.5 per cent year on year to 14,994, while the value of loans jumped by 39.6 per cent to €189 million.
These were the highest quarter three volumes and values since the data series began in 2020, and BPFI chief executive Brian Hayes said the “surge” in car loans is due in part to the continued growth in new car sales, especially electric cars, that accounted for 19 per cent of new cars licensed for the first time in 2023.
“The average loan value was up by more than €900 to €10,336 in quarter three of 2023, car or auto finance loans are up by €1,268 to €12,599, likely reflecting higher car prices and growth in luxury and e-vehicles,” he said.
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Overall, the report shows that the value of personal loan drawdowns in the third quarter of last year reached a new high of €552 million, with 53,404 loans drawn down. This was an annual increase of 13.4 per cent in volume and 25 per cent in value compared to the same period in 2022.
The number of home improvement loans rose by 13.1 per cent year on year to 14,419, while the value rose by 23.9 per cent to €174 million – also record figures since the series began four years ago.
[ Car loan values jump as demand for electric and luxury vehicles growsOpens in new window ]
A total of 23,991 loans for other purposes, including education, holidays and special occasions such as weddings were drawn down in the third quarter of 2023, an annual increase of 7.1 per cent. Loan values rose by 14.1 per cent to €189 million over the same period.
The value of green personal loans rose to €27 million, an increase of 143.7 per cent year on year while the number of green loans jumped by 119.3 per cent over the same period to 1,250.
Green loans include those to purchase a “green” vehicle such as an electric or hybrid car, or a loan to finance upgrades to improve a home’s energy efficiency.
The value of the average green loan in the third quarter was relatively high at €21,603, compared with the average for all loans at €10,336.
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