Auto loans likely static for rest of 2025

Despite lower rates, Tris sees flat market

- NAREERAT WIRIYAPONG

Auto hire-purchase lending is likely to remain flat in the second half of 2025 despite falling interest rates and competitive new car pricing, says Tris Rating, citing cautious lending practices, weak consumer purchasing power, a glut of used cars and limited truck demand.

According to Tris, hire-purchase loans across all vehicle categories declined throughout 2024 and into the first six months of 2025, though passenger cars showed early recovery signs driven by competitive used car pricing and growing hybrid electric vehicle (HEV) demand as consumers shift towards sustainable options.

“Auto hire-purchase lending will likely remain flat in the latter half despite favourable conditions, including supportive regulations, competitive new car pricing, motorcycle market normalisation, and falling interest rates,’ the credit rating agency said in a recent report.