Bit surprising tbh with the housing market in the doldrums (https://www.interest.co.nz/property/...-any-time-soon) 430,000 NZers behind in their debt repayments (https://www.interest.co.nz/personal-...tting-pressure), and interest rates at their highest level for years. For how long, can Turners keep defying the macro-economic trends?[/QUOTE]
430,000 is close to 10% of the entire population, yet the article has "Consumer arrears rose to 11.9% of the active credit population". I suspect these numbers, they don't gel. Note the article chart shows the seasonal nature of debt and that at the same time in 2019, we had 12.2% in arrears, it is now only 11.9%.
Yes the property market is down, but not in the doldrums, the vast majority of owners bought before the bubble, so only interest rates impact them and rates are well below 2007 interest rates during a previous boom. My truckometer shows we are still spending flat out, so does the latest card data, so maybe we are not really in the doldrums as the RBNZ would like us to think. HH Income is growing at record rates, in some regions well above inflation, so maybe we just have the spending power.
Replacing a second hand car is not like buying a house, it is often done due to a necessity, eg the old car is bust. The rate of car deregistrations in increasing, suggesting that Turners is on a roll simply because too many people have held on to their dunger for too long.
Turners also benefited from rental company replacements a few months ago and will do from both the floods and the increase in debts - recall they have a business for credit control where they do the work for the Telco's. The linked article shows an increase in Telco debt, having that work return could be significant - recall the Telco's delayed credit controls during Covid.