Vehicle finance is set to soar in 2015, according to new research.
Research released by IBISWorld has claimed vehicle finance is set to grow significantly in the year ahead on the back of low interest rates. The researcher said the amount borrowed to buy a new car or station wagon has risen at an annualised rate of 15% over the last five years, more than doubling in dollar terms from $3.4bn to $6.9bn between 2009 and 2014.
IBISWorld said the number of new cars sold in 2009 was 916,050, with an average financing amount of $3,718.63. By comparison, 2014 saw the number of sales rise to 1,122,100, with the average sum financed rising to $6,110.52.
IBISWorld industry analyst Andrei Ivanov said Australians have become more comfortable with the idea of financing vehicles.
“Car financing is growing at a faster rate than any other form of finance, with consumers in their thirties and forties who have purchased property in the past five years comprising the biggest borrowing market,” he said.