Decrease in new car loan approvals reaches 17% figure
Hey there! Let's dive into the world of auto loans, shall we? Recent data shows that the percentage of used cars in total auto loans hasn't budged much, hovering around 37% for the past two years. In April 2025, a whopping 532,000 used cars were snapped up – a segment with interest rates that continue to hover over 28% per annum!
But it's a different story for new cars. Experts attribute the drop in interest rates for these shiny, fresh babies to promotions and sales support programs from Chinese manufacturers. Thanks to the government's subsidized program, domestic cars can also benefit from lower interest rates. These reductions have brought the average interest rate for new car loans down to a mere 17% per annum – the lowest it's been since October 2023!
Now, you might wonder why the difference between new and used car loan interest rates. Well, it's all about resource costs, bank expectations, and some tough love from the Bank of Russia, who've tightened lending standards since mid-2024. The folks at UralSib Bank, for example, now offer a minimum interest rate of 25% on standard auto loan programs, while Absolute Bank's new car loan rates have dropped 2.7 percentage points in a single month!
So, there you have it! New car loans are getting more affordable thanks to a little government help and special programs for Chinese carmakers. But used cars? Well, they're still sitting pretty at over 28% interest. It's all about risks and rewards, mate! Keep an eye on our Telegram channel (@expert_mag) for more automotive news and insights!
(Insights: The average interest rate for new car loans in Russia has steadily decreased to approximately 17% per annum, the lowest level seen since October 2023. Meanwhile, used car loans continue to hover over 28%, influenced by higher key rates and stricter lending standards. This contrast underscores targeted support for new car purchases, particularly from Chinese producers.)
- The decreased average interest rate for new car loans in Russia, currently around 17% per annum, is a result of government assistance and special programs for Chinese automakers, making new car financing more attractive.
- In contrast, used car loans continue to remain above 28% due to higher key rates and stricter lending standards, thereby making financing for used cars relatively less favorable compared to new cars.
