Having learned zero restraint from the years of boom and bust, Portuguese drivers went credit crazy last year with €1.1 billion advanced by normally tight-fisted banks to customers wanting to buy new cars.
Car loans from January to November 2014 was the only credit segment in the country to show any real signs of growth, according to data released today by the Bank of Portugal.
The total credit granted to consumers in these months rose 11% over 2013, from €3.3 billion to €3.7 billion, with car purchase loans rising a staggering 37% and representing over 30% of all consumer credit advanced .
The granting of loans for car purchases accelerated from May and peaked in October with €128 million taken out in credit for cars.
Credit granted via credit cards, loans, current accounts and overdraft facilities (including unused ceiling) fell 9% from January to November, down from €944 million to €859 million.
The credit segment that showed the greatest fall and which represents the smallest value of total loans was money advanced for education expenses, healthcare, renewable energy equipment and the leasing of other equipment.
This sector fell 23.7% with a piffling total granted of €2.6 million.
With Mercedes Portugal reporting its best year ever with a 45% growth and 10,000 vehicles sold, and with other top marques booming, either Portugal is coming out of recession with a roar, or the banks have slackended their lending guidelines and see a car as an easier asset to sell than a house should the customer default.
