AvtoVAZ said that car loans in Russia have become almost unaffordable
The increase in the key rate and tightening of lending standards have made car loans almost unaffordable for Russians. This was stated by the head of AvtoVAZ Maxim Sokolov, according to the press service of the car company, which was received by "Izvestia" on December 4.
"In recent weeks, a number of macroeconomic factors that negatively affect car sales in Russia have worsened. We are talking about the key rate of the Central Bank, lending standards and the ruble exchange rate. Thus, the increase in the key rate and the tightening of lending standards have made car loans almost unaffordable for citizens. At the same time cars in Russia are sold mainly on credit", - Sokolov's words are quoted by the press service of AvtoVAZ.
The top manager noted that AvtoVAZ confirms its readiness to fulfill the production plan for 2025, which is 500 thousand cars. The enterprise has the necessary facilities, personnel and other resources for this purpose. However, if macroeconomic factors worsen and demand decreases, the company will be obliged to adjust plans to prevent overproduction. If demand grows, AvtoVAZ will consider increasing volumes, Sokolov added.
On November 28, it was reported that in the first 10 months of 2024 in Russia were issued auto loans worth 2.02 trillion rubles, an increase of 79.8% compared to the same period last year. In January-October in Russia was issued 1.4 million car loans, year-on-year growth amounted to 75.7%.
November 27, it became known that in October 2024, the average term of auto 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. Increase in the term 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.
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