Car loan drawdowns reached record high with loans valued at €208 million in Q1 2024 – BPFI Personal Loans Report
- Continued momentum for green personal loans, up by 38.3% in volume with record values of over €27 million
- Volume of home improvement loans fell by 6.7% year on year, but values rose by 12.9%
Friday 9th August 2024 – Car loan activity reached a record high with over 16,000 (16,089) loans valued at €208 million, according to the Banking & Payments Federation Ireland (BPFI) Personal Loans Report for Q1 2024. This comes as the overall value of personal loan drawdowns reached €551 million, the second highest level (after Q3 2023) since the data series began in Q1 2020.
Looking at the various loan types:
- The number of car loans rose by 6.1% year on year to 16,089, while the value of loans jumped by 10.7% to €208 million, the highest volumes and values since the data series began in Q1 2020.
- The number of home improvement loans fell by 6.7% year on year to 13,009 while the value rose by 12.9% to €166 million over the same period.
- A total of 20,672 loans for other purposes, including education, holidays and special occasions such as weddings were drawn down, a rise of 2.7% in volume year on year, with values rising by 21.1% to €177 million over the same period.
- The value of green personal loans rose to €27.1 million in Q1 2024, an increase of 38% year on year while the number of green loans also jumped by 38.3% over the same period to 1,209.
- The average green loan was more than twice the value of an average personal loan at €22,432 in Q1 2024, compared with the average for all loans at €11,062. The average car loan was €12,901.
Commenting on today’s report, Anthony O’Brien, Head of Sector Research & Analysis, BPFI said: “Our latest report shows continued strong activity in personal loan drawdowns. While overall volumes have increased somewhat by 1.1% year on year to 49,770, values have risen more significantly by 14.5% over the same period to €551 million, a jump of more than 90% since Q1 2021. The average loan value is now at its highest level since the data series began in Q1 2020 at €11,062, a jump of almost €1,300 from the same period last year.”
Mr O’Brien continued: “Looking more closely at loan types, we are seeing a continued surge in car loans with both volumes and values at their highest level on record, with 16,089 loans drawn down in Q1 2024, valued at €208 million. This likely reflects the sustained growth in new car sales, with CSO figures showing an increase of 9% of new cars and 25% of second-hand cars licensed in Q1 2024 compared with Q1 2023. In contrast, the number of home improvement loans have decreased 6.7% year-on-year, although the values rose by 12.9% with the average home improvement loan at a new high of €12,770.”
“Meanwhile, momentum for green loans continues to grow with a jump of 38.3% in volume year on year, the second highest on record, and an increase of 38% in value to €27.1 million, the second highest value since the series began (after Q2 2023). The average green loan value was more than twice the value of an average personal loan at €22,432. We expect the Government’s recently launched Home Energy Upgrade Loan Scheme to provide a further boost to green loan demand by helping to reduce the financial barriers to home energy upgrades and make them more affordable. These loans will support homeowners who want to undertake a substantial retrofit to improve the energy performance (building energy rating) of the home by at least 20% and be supported by a Sustainable Energy Authority of Ireland (SEAI) grant.”
The BPFI Personal Loans Report Q1 2024 can be downloaded here.
ENDS/
Data Series: Personal loan report data from Q1 2020 onwards is available in Microsoft Excel format (*.xls) in the BPFI Personal Loan Report data series. BPFI data on green loans is available from Q1 2022. Download the BPFI Personal Loan Report time series here.
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
Contact: Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
