Car loan disbursements fell by 37% in October

The volume of car loans in October decreased by 37% compared to the previous month, as the United Credit Bureau (UCB) informed "Izvestia. In total, more than 86 thousand loans for Br123 billion were issued.

The trend was confirmed in the press service of VTB, saying that in October the bank issued significantly fewer loans for the purchase of cars than in September.

The average level of full cost of car loans in October exceeded 23%, the UCB noted. The average term of a car loan increased to five years and 10 months, and its average size increased to 1.44 million rubles.

"Taking into account the down payment of 20-30%, this corresponds to an auto costing close to 2 million rubles," explained Nikita Kulagin, head of Sovcombank's macroeconomic analysis department.

Overpayment on a car loan with such conditions may amount to about 1.2 million rubles, which is 80% of the original cost of the car, according to "Izvestia".

The share of car loans for new cars in October decreased to 66%, follows from the data of OKB. A month earlier, the figure reached 72%. That is, Russians are increasingly buying used cars.

An important reason for the dramatic changes in the market is that borrowers were expecting a rise in the price of cars due to another increase in the utilization fee from October 1, said an expert on the stock market "BCS World of Investments" Evgeny Mironyuk. That is, the decrease in issuance now is to some extent a setback to the normal level, which was recorded earlier, when the market was not a frenzy of demand, he emphasized.

Read more in the exclusive material of "Izvestia":

Car traffic: car loan disbursements collapsed by 37% in October