TransUnion’s data shows that the average outstanding balance on a vehicle loan in South Africa is R222,804.<\/strong><\/p>\n In Q2 2021, the volume of new vehicle loans increase by 95.8% YoY. This is expected as in the comparable period in 2020, level 5 and 4 lockdown restrictions prevented dealerships from operating, TransUnion said. It noted that the current origination volume remains below pre-pandemic levels – down 9% from Q2 2019.<\/p>\n “However, the gap is narrowing; a sign of recovery as demand returns. New loan amounts increased by 8.7% YoY as consumers pay more for vehicles due to ongoing price increases. Serious account-level delinquency rates reduced marginally to 7.1% in Q3 2021 compared to the prior year and across all age bands.”<\/p>\n The stability in delinquencies may result from refinanced deals contributing to higher average balances per account but lower repayment values for consumers leveraging the benefit of a low-interest rate and improvement in risk mix from new originations, TransUnion said.<\/p>\n Home loans<\/strong><\/p>\n TransUnion’s data shows that the average outstanding balance on a home loan in South Africa is R593,599. <\/strong>The volume of home loans has rebounded since the pandemic began – up 149.6% YoY, the group said.<\/p>\n “The comparative growth is exceptionally high because the deeds office was closed during Q2 2020, creating a backlog of applications which resulted in below-average approvals.<\/p>\n “However, with many industries adopting a hybrid work approach, demand for larger living spaces has risen. Millennials dominate originations from a distribution perspective accounting for 52%, followed by Gen X at 41%.”<\/p>\n One factor that may have contributed is an increased appetite of home loan lenders toward lower risk profile borrowers, TransUnion said.<\/p>\n “Originations to prime and above borrowers in Q2 2021 (78%) is up 15% YoY (63% Q2 2020). Another factor is the increase in refinanced properties, resulting in lower repayment amounts alleviating financial strain on consumers.”<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/12\/Vehicle-loans.png\")
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