At the end of August, the share of new cars purchased on credit in the total number of sales was about 47%

According to the results of January-August, Russians purchased more than 51% of all new cars and 10% of used cars using borrowed funds. These figures turned out to be significantly higher than the levels of the same period last year: 40.1% and 6%, respectively. The dynamics are mainly associated with rising prices for cars against the backdrop of their continuing shortage. Citizens are trying to have time to purchase a car at current prices and at current rates, fearing a further increase in both. However, this is precisely what can slow down the auto lending segment in the traditionally rushing fourth quarter.

At the end of August, the share of new cars purchased on credit in the total number of sales was about 47%, which exceeds the figures for the same period in both 2022 and 2021, VTB calculated. At that time, 43.6% and 43.4% of new cars were purchased on credit, respectively. On average, over the past eight months of this year, the indicator was at the level of 51.3%, the maximum values ​​were observed in January (65%) and July (57%). This is higher than the eight-month average for 2022 (40.1%).

In the segment of used cars at the end of August, the share of credit transactions amounted to 10%, which corresponds to the average value in January-August. “Requests for new cars are growing faster than for used cars,” explains Expobank Managing Director Dmitry Maslov. “The new car market is gradually becoming saturated with Chinese brands.”

“In August, demand for the purchase of cars, including on credit, increased significantly, which could be due to both an increase in the key rate and a significant depreciation of the ruble. Citizens were in a hurry to make a purchase in anticipation of another rise in prices and interest rates,” confirms Yegor Lopatin, deputy director of the group of financial institution ratings of the NKR agency.

“Banks began to offer more flexible conditions against the backdrop of growing demand, for example, issuing a loan for a car of an age for which they had not previously issued, a flexible down payment amount,” adds Alexander Vasiliev, senior manager of the group for servicing companies in the automotive industry of the DRT company. “Many consumers accepted the offer banks to fix current loan conditions against the backdrop of an increase in the key rate.”

Rosbank Auto also notes an increase in demand for car loans. “This is partly due to the significant increase in the cost of cars recently. The growth of real incomes of the population lags significantly behind the rise in price of cars,” explains Vyacheslav Yakubchik, head of the department for the development of partnership programs and strategic segments of Rosbank Auto. “In this regard, buying cars on credit becomes the only accessible way for most citizens.”

In the fourth quarter, Russians’ interest in car loans may cool, fears Konstantin Snegirev, Deputy Head of the Auto Lending Department at VTB, against the backdrop of a tightening of the Central Bank’s policy and, as a result, an increase in rates. The early implementation of part of the demand will also provoke a decline in activity, adds Yegor Lopatin. However, due to the growth of the average check against the backdrop of adjustments in car prices, delivery in the last months of the year will be a record for the market.

Based on the results of partial September, bankers are already observing a decrease in sales of both new and used cars in comparison with August, according to Otkritie Auto (the auto business unit of Otkritie Bank). According to VTB, in September-December the issuance of car loans could reach 500 billion rubles, accounting for a third of the annual volume. That is, the market will return to the spring trend, when record growth was ensured by an increase in the receipt, but not by the number of issues.

Polina Trifonova