Expensive cars - cheap credit

The government intends to extend the program of preferential car loans and remove the constraints on the car's cost, said the head of the Ministry of Economic Development Elvira Nibiullina. While the program will only include those vehicles, the retail price not exceeding 600 thousand rubles. The state program of preferential car loan was launched in April this year. The State compensates the bank that provides loans, 2 / 3 of the refinancing. Recall that since the beginning of the program refinancing rate has decreased from 12,5% to 10%. In the first version of the program were given loans for cars assembled in Russia a maximum value of 350,000 rubles, with an initial contribution of at least 30%. In early July, Russian Prime Minister Vladimir Putin signed a decree that increases from 350 to 600 thousand rubles limiting price level of car prices, for which the government subsidizes the interest rate. In this case, the initial payment for the loan was reduced from 30% to 15%. The program so far involved only four banks: Sberbank, Russian Agricultural Bank, VTB 24 and Gazprombank. According to media reports, are considering to join the program Bank of Moscow, and Unicredit Bank. Credit is given for three years. To compensate for the bank interest rates from the budget will allocate 2 billion rubles this year, 1.5 billion - in the next 500 million rubles in 2012. Thanks to these measures, in September, the volume of car loans rose from August by 1,5 times, and there was a reduction of bank interest rates. For example, the Savings Bank rate for this program is 8%. If the restrictions will be charged to the dealer and manufacturers to sell under the state program, 2 times more models of foreign cars assembled in Russia. Now fall under the action of only ten cars assembled in Russia cheaper than 600 thousand rubles: Ford Focus, Kia Spectra, Chevrolet Cruze, Renault Logan, Fiat Albea and Doblo, Skoda Fabia and Octavia, Hyundai Sonata and Accent. In case of cancellation price barrier in the program can get off-SsnagYong Rexton and Kyron, Opel Antara, Chevrolet Captiva, Nissan X-Trail (its assembly begins this week), Volkswagen Touareg, crossover Tiguan, as well as cars Volkswagen Passat, Jetta, Golf, Polo, Skoda Fabia and Octavia in the more expensive trim levels, and even a model of business-class Nissan Teana and the Volkswagen Phaeton. The desire to extend state programs logically. By year end, the Ministry of Industry plans to issue 100,000 loans. While on October 16 issued only 43,300. As acknowledged by representatives of the banks themselves, to give the claimed amount of loans and to meet deadlines, they will not. Many experts have recommended the government to maximize the program. For example, the Association of European Businesses (AEB) proposed to increase car sales in Russia to include in the support program, all vehicles produced in Russia, to cancel it at the price of the machine limit and increase the budget for the program to an amount "which allows to stimulate the purchase of 500 thousand cars in the next year" . "For the industry is very important that the state continued to support the industry, but it is also important that measures of state were distributed equally on all brands, and supporting those engaged in production, and those who work in distribution", - said chairman of the committee automakers AEB David Thomas. The fall in car sales in Russia remains the strongest among the 15 largest markets in the world, said Vice Chairman AEB Automobile Manufacturers Committee of Martin Yan. "It was important to support foreign producers, who built here their sites, investing in Russia, have brought their technologies. The tremendous drop in sales in Russia could lead to the fact that the site could close, investors would have taken out of Russia, probably forever," - comments Bank.ru president of the Association of credit brokers Nikolay Korchagin. "I think that this measure will help our auto industry to survive. But, first, confused by the fact that loans are only four banks. It is possible that they simply can not cope with the volume of requests for new conditions. Second, if State provides financial support, it automatically means that it takes risks. Let me remind you that the budget deficit is already very large. Therefore, these benefits have a right to exist only as a temporary measure. In my opinion, the worst of times have not yet passed. But By that time, as these new conditions become law, will take months. And, in my opinion, by the time the market is already out of progressively severe crisis. If the final rate will not exceed 10%, then it is possible that for these loans will be a serious purchasing power. In fact, all major reductions have already passed, I do not think that the material situation of our citizens even worse. Therefore, in general, this is a positive measure to help revive the industry, "- said the expert. At the same time, some experts believe the program itself meaningless. "The program in the theory is correct, similar programs have been in other countries - the U.S., Germany (where they have already been completed). But the Russian was unsuccessful - explains Denis Barabanov, head of analytical department of the investment company" Grandis Capital "- firstly, during the crisis was a sharp reduction in consumer demand (if the Americans had to spend to stimulate savings, then the Russians, in principle, these savings were not). Secondly, the price of cars is too high. Prices in Europe and especially in the U.S., lower than Russia, moreover, do not forget about the income gap. So such a program was doomed to fail in Russia. Moreover, according to Denis Barabanov, if previously had at least some logic, then change the program it will not do: "If the program will be extended to any cars, it might lead to a minimal increase in demand. The demand of the population who can buy the car of middle and high-end, not so heavily dependent on lending rates. If before the program was the logic - support for domestic producers and foreign manufacturers of cheap cars that are produced in Russia, now the authorities do not understand the logic. For what stimulate the purchase of relatively expensive cars? This measure is useful only to foreign producers "- the expert concludes.