Car Finance company sees 15% increase in loan amounts

Car finance company, Go Car Credit has reported a 15% increase in average car loan amounts from 2020 to 2021.

Reporting a 25% increase in secured agreements in 2021 compared to 2020, it appears vehicle financing continues to see a boost despite the pandemic and semi-conductor shortage. With the average age of those taking out a bad credit car finance loan increasing over the last 5 years.

From the years of 2017 to 2021, Go Car Credit has also seen an increase in the average loan amount from £5666 to £7142, which is a 26% increase. With the UK facing a boom in the used car market and secondhand vehicles costing more than brand new due to supply issues and chips, it is likely that this has contributed to increases in average loan amounts.

There’s also been an increase in the average income from £2139 to £2398 from 2017 to 2021 for customers. This suggests that increasingly, those on higher salaries are requiring the help and support of companies that cater specifically for those with poor credit. Alongside this, the average APR has dropped from 47% to 42.3%, a reduction of 4.7%.

Mark Giles, CEO at Go Car Credit said “The pandemic has obviously affected finances across the last couple of years but it’s positive that we’ve seen a 25% increase in loan amounts from 2020 to 2021. The semiconductor shortage has also led to a surge in the cost of secondhand vehicles which has no doubt put pressure on customers to secure larger loan amounts. Thankfully, we’ve seen an increase in loans secured to meet this demand, whilst lending responsibly.”