Registrations collapsed, but in the first half of 2021 credit requests for the purchase of a new car increased by 51.8% compared to the same period last year. The newfound consumer confidence may further stimulate future demand.
Despite the incentives launched by the government, the automotive world is still unable to find its way back to recovery. Even if, according to the photograph taken by Crif in the first half of 2021, there is a strong recovery of the “credit” linked to the purchase of a new car.
The trend
Faced with a strongly negative trend in registrations, which in July saw a decline of -19.4% compared to 2020 and -28.1% compared to 2019, the automotive market is finding partial support in the decisive recovery of disbursements of loans for the purchase of cars, which in the first part of the current year grew by + 71.2%, returning to volumes close to those pre-pandemic.
In this phase, the propensity of Italians to turn to credit institutions to support a demanding spending project such as that of a car is also confirmed by the trend in demand for targeted loans. In the first half of the year, requests for car loans registered on Crif’s credit information system jumped by 51.8% compared to the first half of 2020, benefiting both from the stimulus deriving from state incentives and offer conditions still palatable.
“Undoubtedly, the recovery of loans for the purchase of a car must be compared with the first half of 2020 heavily conditioned by the spread of the pandemic and the consequent restrictive measures that had slowed the market”, notes Elisabetta Pancaldi, senior director of Crif, which at the same time, however, underlines how volumes have returned overall to levels close to pre-Covid levels thanks above all to the rebound in March, April, and May. For the near future, it is expected that the demand for loans may grow further, stimulated by the improved consumer confidence and the consolidation of the economic recovery, guaranteeing support for a market that is struggling to restart. On the distribution front, however, the constant increase in requests for financing conveyed on the online channel, favored by the growing digitalization of credit processes.
The average amount increases
It should also be noted the increase in the average amount of car loans requested, which at the end of June stood at € 16,044, up by 5% compared to the same period in 2020.
Over the last few years, the value of the loans has steadily grown, stimulated by a still low cost of money and extremely attractive offer conditions, aimed at stimulating the renewal of the car fleet in our country.
Almost half of car loan applications were submitted by consumers between the ages of 35 and 54, due to the growing incidence of applicants between the ages of 45 and 54.
On the other hand, there was a slight decrease in the weight of the under 35s who, in any case, represent over 1/5 of the total, confirming the significant weight of this group of consumers.
Concerning the trend of requests for car loans in the various regions of the country, influenced by local peculiarities and dynamics that have not been the subject of in-depth analysis, the Crif survey shows a markedly positive trend in Umbria (+ 22%), Valle d’Aosta (+ 16.4%) and Abruzzo(+ 16.2%) offset by the decreases recorded in the Marche (-5.4%), in Tuscany (-9.2%), in Molise (-11.8%). There was also a slight decrease in requests in Piedmont (-0.9%) and Lombardy (-1.6%). Concerning the average amounts requested, on the other hand, in June, the primacy goes to Trentino-Alto Adige, with 18,909 euros, followed by Valle d’Aosta, with 17,703 euros. At the opposite end of the ranking is Basilicata, with € 14,759 on average, and Molise, with € 14,496.