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Fintech platform Nodifi has seen an increase in car loans from the broker channel in the last quarter, but the group has warned ongoing lockdown restrictions could shake outcomes.
Asset finance marketplace Nodifi has published loan data from the June quarter, showing an increase of 9.4 per cent delivering an average loan amount of $40,710, up from $38,72 in the first quarter.
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Average asset finance loans sourced through the direct channel had risen from the prior quarter by 6.1 per cent to $29,691, while those in the third-party channel increased by 6.2 per cent to an average of $40,771.
There had been a 15.2 per cent drop in loans originated through Nodifi’s direct channel, but a 9.1 per cent rise from the third-party channel.
Close to three-quarters (73.2 per cent) of Nodifi’s asset loans were for consumers, compared with 26.8 per cent in the commercial realm.
An increased demand for house renovations was reported to boost personal loans.
Nodifi believes ute and SUV popularity will continue to drive positive trends for vehicle finance, with more purchases expected once dealership stock levels start to increase and return to normal.
But the fintech has warned that COVID-19 could still continue to have an impact, amid lockdowns.
June saw the majority of settlements during the second quarter (40.5 per cent), compared with April (26.4 per cent) and May (33.1 per cent) – driven by the end of financial year demand for motor vehicles, Nodifi reported.
While settlements dropped by 6.9 per cent via the direct channel, there had been a 32.9 per cent boost from the third-party channel.
Vehicle finance settlements were up by 17.4 per cent from the first quarter and 12.9 per cent year-on-year.
Motor vehicles made up 85 per cent of all settlements.
While June was again the standout performer in Q2, it wasn’t the strongest month year to date, with March recording 21.2 per cent of all settlements, in contrast to June’s 20.2 per cent.
In terms of spread, NSW and the ACT led the country for most settlements, followed by Victoria and Queensland. The three states contributed to 79 per cent of all settlements.
People aged 30-39 had taken out the most vehicle loans, occupying 33 per cent of loans, compared with 31.1 per cent for 18 to 30-year-olds, 20.7 per cent for 40 to 49-year-olds and 15.2 per cent for those aged 50 and over.
[Related: Nodifi sets rates for consumer asset finance]
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