Despite the drop in new car sales, increasing demand for loans, many buyers do not have real money. Dealers have launched their own programs and are actively competing with banks on the loan market.
In the first half of 2016 vehicle sales in Russia continued to fall, however increased demand for loans. In January–March this year, the number of cars bought on credit, compared to the same period in 2015, increased by 66%. Data for the second quarter in turn almost 33% higher than the previous quarter. According to experts, helped the state support of the car market and General easing of credit conditions. Almost every other loan on the market, issued by the state program.
At the same time, a negative factor impeding the development of the car loan, like the car market as a whole, is the growth of prices for cars. The cost of the car from the beginning of 2016 increased by 20-30%. Accordingly, the General trend to lower rates and softening of requirements to borrowers average loan size continues to grow. If in I quarter of 2015 the average cost of a car purchased with the loan was 650 thousand rubles in the I quarter of 2016 it has already amounted to 720 thousand rubles, and now has exceeded 800 thousand roubles.
Another reason for the growth in average loan amounts — falling incomes of potential borrowers who are forced to increase the share of borrowed funds when purchasing cars. “After reducing the key rate by the Bank of Russia loans have become more affordable. In particular, this will intensify the so-called pent-up demand: now a “wait” of high rates (approximately 9-10% of potential borrowers), they will be ready to use loans for the growth of their availability,” — said Stanislav Novikov, the Deputy Chairman of the Board of FG BKS of retail business. And although this year the loans will not be able to reach pre-crisis level, the rate of decline will slow down in 3-4 times.
While it is impossible to say exactly when there will be market recovery of lending to previous levels. It is hampered by such factors as high prices for new vehicles, high interest rates on loans and the unwillingness of clients to burden yourself with additional credit obligations. “More than 30% of cars currently sold on credit. And with the beginning of the year an increase in the number of issued loans. Note that these figures were formed after the start of the state program of preferential car loan. In my opinion, the car loan market in the near future will continue to be in a locked mode relative to pre-crisis indicators”, — said the Director of Department of retail business of RosEvroBank” Anton Suvorkin.
Over the past two years manufacturers have begun to actively develop its own lending program. In 2016, all manufacturers of the TOP 10 have a brand program on used cars, with the exception of domestic producers. “In accordance with the terms of loan programs the customer has proven (legally and technically) the car, which reduces the risk of the buyer and makes the process transparent for all participants. Not less actively developing their own programs and dealers,” — said the head of Department of a grocery policy of the Department of autocrediting of Rusfinans Bank Alexey Borodavin.
At the same time, the inability of some participants of the banking sector to join programs with manufacturers, forcing them to curtail business or to change majors and focus on the market of used cars. The result for this market or only slightly different from offers on new cars.
The average rate
Now the average rate on a standard car loan programs to be in the range of 15-18% per annum. Compared to the same period in 2015, the range of bets decreased by 4-6%. In the framework of the state program the rate can be lowered to 10-12% per annum. The final rate on the loan is influenced by the initial payment, term and amount of loans. Specific segments of vehicles, such as cars of a business class, banks have many special loan programs with reduced rates. “At the rate the can change the brand of the machine. Some banks have special programs with car manufacturers that are currently reduced interest rate due to discounts on the vehicle provided by its manufacturer” — the Chairman of Board of Bank “Yugra” Dmitry Shilyaev. The state program generally has become a powerful driver of the market and helped it not to SAG even more because of the devaluation, which led to a permanent increase in the price of cars.
Of course, many potential buyers, the question arises, whether to buy a car now or to postpone the purchase. “Today there is a trend to reduce interest rates on lending programs, but a significant reduction should not expect”, — said Andrei Ermakov, Director of development for the car loan Loko-Bank. In addition, when buying a car on credit you can save on other options. The fact that in early 2016 the average rate on the hull showed a decrease, which was caused by the increased use of the franchise.
The latest trends
But the cost of owning the insurance increased by 17% due to the rising cost of the cars themselves, which in turn leads to a fall in demand for insurance. For this reason, Borodavin sees on the market a few trends. One of them — Bank rates without the hull. The demand for data rates is growing both on the part of clients who want to minimize their costs when buying cars and dealers to maintain the level of sales are used for realization of uninteresting for their product (no download service from the insurance companies).
There is also the option of a “light” hull insurers. Such programs are created in collaboration with car manufacturers and are promoted within the framework of corporate programs. The cost of insurance on them is reduced due to the high amount of the deductible or reduce the amount of risks insured.
On the market you can also use the insurance “Financial guarantee”. This product was brought to market as a compromise between the classic hull and a complete lack of it. It involves the repayment of loan amount in case of occurrence of insured events.
Choosing Bank, pay attention to the procedure and the procedure of loan repayment. Find out what the penalties you can face for overdue payments. Know in advance whether it is convenient for you located ATMs and Bank branches. Choosing the type of loan, do not rush.
Quick loans a more convenient (faster the Bank will make the decision), but they are less profitable. If you take your time, better to choose the classic credit: bureaucratic red tape and wait time a little more, but you’ll lose less in interest charges, especially if we are talking about expensive cars.
A lot of good suggestions should appear in the fourth quarter, when manufacturers compete with each other for additional bonuses and discounts. Since the market downturn, but now the buyer has many opportunities to obtain a favourable sentence.