Average term of car loans in Russia increased by five months

In October 2024, the average term of car loans for new and used cars amounted to 5.57 years, which is 7.9% or five months more than at the end of October of the previous year. This was reported by the National Bureau of Credit Histories (NBKI) on November 27.

The increase in the terms of car loans makes them more affordable by reducing the size of monthly payments: the "longer" the loan, the smaller the size of monthly payments and, accordingly, less debt burden of the borrower, explained the marketing director of the NBKI Alexei Volkov. The average check of an auto loan in recent months is slightly decreasing, but still remains quite impressive, he noted.

The highest average term of auto loans in Russian regions in October was recorded in Khanty-Mansiysk Autonomous Okrug (5.84 years), Tyumen Region (5.8 years), Perm and Krasnodar Territories (5.77 years each), as well as in Volgograd Region (5.76 years).

The lowest average term of car loans was shown by Moscow (5.23 years), followed in the rating by St. Petersburg (5.32 years), the Republic of Crimea (5.36 years), the Moscow Region (5.39 years) and the Republic of Tatarstan (5.40 years).

The Republic of Crimea, Perm Krai and Novosibirsk Oblast, as well as Krasnodar Krai and Ulyanovsk Oblast showed the highest dynamics of term growth (the increase amounted to 9 to 10%). In Moscow and St. Petersburg, the average term of car loans for the year increased by 7.3 and 6.4%, respectively.

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November 18, it was reported that the volume of car loans in October decreased by 37% compared to the previous month. In total, more than 86 thousand loans for Br123 billion were issued. The average level of full cost of auto loans in October exceeded 23%, the UCB noted. The average term of a loan to buy a car increased to five years and 10 months, and its average size - up to Br1.44 million.

November 12, it became known that Russian banks began to issue more often non-purpose consumer loans secured by vehicles. According to the Central Bank, if before 2023 the share of such consumer loans was less than 1% of those provided by the sector as a whole, in the second quarter of 2024, it exceeded 3%, and in the third quarter reached already 5%.