Russians stop raising car loans

The current decline in the sales of car loans has become a cause for serious concerns for car dealers in Russia. According to RBC, the rate has dropped from 37 to 30 percent since spring. The largest reduction of the index was reported in the mass segment:  25 percent now vs. 40 percent in the beginning of the year.

The Statistics of the National Bureau of Credit Histories (NBCI) confirms that during the first three quarters of this year, the quantity of auto loans declined by more than 20 percent compared with the same period of last year.

During the same period of time, according to the Association of European Businesses (AEB), 1.8 million cars were sold in the country. That is, the ratio of "credit" cars accounts for about 35-38 percent compared to 45 percent at the end of last year. According to AUTOSTAT, in the US, the share of cars bought on credit, makes up 83 percent; in the UK - 74 percent.

The reduction in the number of car loans may be primarily due to growing lending rates and insurance tariffs. The fall in demand for car loans may also be explained with macroeconomic factors. The decline of the Russian ruble against the dollar and the euro lowers the standard of living of the population, and people prefer not to take on an additional financial burden.