ROAD: Russian car market may shrink by 8-10 percent
In Russia, they predicted a reduction in the car market by 8-10 percent. They write about this with reference to the Russian Automobile Dealers Association (ROAD). “News”.
According to experts, a drop in sales is expected after the Central Bank’s decision comes into force on July 1, which limits the issuance of car loans and increases premiums on risk coefficients. ROAD believes that as a result, loan rates could increase by 1.5-2 percent and reach 19-24 percent for new cars and 22-27 percent for used cars.
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The Central Bank expects that after increasing the surcharges, banks will begin to provide fewer loans to Russians with a high debt burden. “We include among them those who spend more than half of their income on payments,” the regulator’s press service said.
ROAD Vice President Alexey Grigoriev believes that increasing requirements for borrowers will have a critical impact on car sales. According to him, loan approval will decrease by at least 10 percent. The Association of Automobile Dealers suggested that the effect of the Central Bank’s measures will be noticeable in the third quarter of 2024, but other factors will also influence the Russian car market, including expectations of an increase in the key rate.
Earlier, the National Bureau of Credit History named the recommended income of a borrower paying off a car loan. According to experts, it should be 116.8 thousand rubles – the amount required to service this type of loan has increased by almost 15 percent over the year. According to the bureau, in 2017-2019, for optimal car loan servicing, you had to earn from 60 to 80 thousand.
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