Car Loan - Reboot

By the end of this year's auto loan market in Russia decreased by almost four times compared to last year: forecast "Avtostat, its volume is $ 5.6 billion versus $ 20 billion in 2008. Car sales in credit could fall to near 2004 levels, while the Russians have purchased with loans of about 350 thousand cars. In 2007-2008, the market volume grew more than three times - every year on credit schemes sold over 1 million vehicles. Before the August 2008 car loans was the main driving force of the Russian automotive market. Sales of new cars, both physically and in value terms, grew up just due to the inflow of available credit and a high exchange rate against the euro and the dollar. However, from the beginning of the crisis situation has changed dramatically. If last summer, almost every second new car buyer purchases with borrowed funds, by the end of the year, according to "Avtostat, the share of credit cars decreased to 15-20%. Banks began to gradually raise rates and tighten conditions for granting loans, and subsequently sharply reduced lending limits - of 5-10. Average rates on car loans by the time grew up to 2-2,5 times: from 12-14% to 25-30% per annum, and sometimes reached 35-40%. All the experts interviewed by the "profile", were unanimous in their opinion the situation is temporary, and as soon as possible the same banks will gradually return to a profitable business. "In recent years, car loan market is stabilized by improving the liquidity situation in the banking market and reduce the cost of funding - says Tatiana Natarova, manager of public relations Nissan Motor RUS. - As a result, many banks have already lowered their lending rates, or plan to do so in the near future time. This tendency is reinforced by the policies of the Central Bank, which gradually reduces the ruble refinancing. Presumably the market of car loans catch up previous positions in the second half of 2009, and by the end of the year, market participants believe the share of "credit" of cars in Russia will increase to 30-35%. With only one caveat - if there is no second wave of the crisis. In any case, with certain types of loans the Russians might have to say goodbye. Experts call the most promising candidate for departure loan with no down payment. Such an option - when the client can easily refuse to pay the loan and simply return the collateral (the car) - neither the bankers nor the sellers are no longer satisfied. Now we can identify the following existing lending programs: "Classic car loan", "Express-credit", "interest-free loans", Buy-back ("buy back"), "Auto loans without insurance, Credit for a used car", etc. " Currently popular lending program in Russian rubles with preferential lending rates, which differs from the standard credit terms of the bank by subsidizing rates from importers or dealers ", - said Sergei Mironov, director of sales," Rolf Import (distributor of Mitsubishi Motors in Russia. - "Profile"). Also, he said, continue to demand loans provided to reduce the number of documents or with a free proof of income. On the background of changes in the market of car loans that occurred during the second half of 2008 increased the value of loan programs offered by automakers - both individually and in association with banks. A number of foreign manufacturers, according to "Avtostat" even opened in Russia's own banks (Bank of Toyota, Mercedes-Benz Bank Rus, BMW Bank). Others have developed special programs in conjunction with Russian banks to strengthen their own brand. "This is due to the appearance in recent months, attractive credit terms to stimulate the credit sales during the period of general decline in consumer activity in the automotive market, - says Tatiana Natarova. - We, for example, increased its loan program proposal Nissan Finance -" 0% overpayment " up to three years in a number of models. And now, on average, every fifth car sold on credit under this program. " A similar proposal is valid and the program Infiniti Finance - "0% of the overpayment on cars Infiniti, including the new Infiniti FX 2009 release. A company ROLF Import, together with the Savings Bank of Russia launched the program July 1, Mitsubishi Motors Finance. According to Sergei Mironov, this loan program allows the buyer to choose the size of down payment (30%) and term (from 1 to 5 years). Depending on certain conditions interest rates ranging from 0% to 11.4%. The choice of insurance companies is not limited to - most importantly, that they were accredited in the Savings Bank. At the same time the official dealer of Mitsubishi in the regions represented by their own credit program, developed with local partner banks. Currently, the share of car sales on credit, "Rolf Import" does not exceed 20%. With the launch of the program of Mitsubishi Motors Finance company expects to raise stake in auto sales credit of up to 30-35%, while increasing and the total number of sold cars. Joint credit program also have General Motors, which started with Alfa Bank in May. As part of a marketing campaign bank and automaker offering customers a minimum of promotional rate of 4.9%. "These programs are attractive not only reduced interest rates for clients, but also more flexible requirements for the borrower, special rates for cars and various promotions in the case of buying a car with the help of credit funds" - said the "Profile" Andrew Sokol, senior vice president of Alfa Bank. Besides standard products, Alfa-bank offers, and new types of loans, whose appearance is due to the current situation on the car loan market as a whole. In connection with a shift in consumer demand towards low-cost or used car bank, according to Sokolsky, developed for its customers' Car Loan without the hull. " Another new product, "Online car loans, can submit a credit application with minimum cost and without leaving, for example, from home - via the Internet. The fact that the main factor influencing the choice of car, now is the price, and Sergei Mironov said. In this regard, the most popular cars are the P (Mitsubishi is represented in this segment of cars and the Lancer X Lancer IX, whose sales were resumed in Russia in late June), and compact SUVs. The crisis changed customer preferences, not only when choosing a car, but when choosing a way of giving credit application. "Most of the borrowers, which is important for the financial condition of the lending bank, is often preferred when applying for no credit department showroom and offices of the bank - said Andrew Sokolsky. - Nevertheless, Alfa Bank believes that one of his priorities the strengthening of relations with auto dealers. " In order to collaborate more effectively, according to senior vice president, the bank has developed special loan conditions, different systems of employee motivation Dealer assigned to each individual partner sales manager, the ability to design the entire loan transaction in the car dealer without having to visit a client bank branch.