Subsidiaries of foreign car companies (captive organizations – created by business groups to serve their customers), behind the scenes banks continue to work and actively attract customers with low-rate loans.
Thus, MC Bank Rus, owned by Mitsubishi, this month launched a profitable offer for the entire model range of the Japanese brand. The bank said that the acceptance of applications and the issuance of new loans continues and the bank has no plans to reduce its activities in Russia.
“From July 15 we have reduced the rate and now a citizen can buy a new Mitsubishi car with 9.9% credit per year.”
Andrey Kochenkov, Director of Business Development at JSC MS Bank Rus, told socialbites.ca.
When asked by the publication about the possible termination of activities in Russia in connection with the sanctions of Japan and the suspension of production and supply of cars to the Russian market, the interlocutor noted that “there is no such desire.”
RN Bank, subordinate to the Renault group and the Nissan concern, continues to work, in addition, it actively lends itself to the purchase of both French brand cars and AvtoVAZ models that once belonged to the concern. In particular, the organization offers a loan for 4 years with a monthly payment of 5 thousand rubles for the purchase of a simplified Lada Granta.
“The Nissan Financial Services program is in effect, the issuance of loans continues, lending has not stopped,” the press service of the Russian representative office of Nissan told socialbites.ca.
The Infiniti hotline and Renault dealership in Moscow also confirmed the ongoing issuance of loans under branded financial programs with the participation of RN Bank.
“10% down payment required, maturity 2 to 7 years, interest rates between 9.9% and 16%”,
– Said the sales manager of one of the Renault showrooms in the capital.
However, not all captive banks continue to work behind the scenes, with German automakers’ credit agencies announcing a similar suspension of work with distributors. “Helplines” dedicated to communicating with customers on financial matters are currently disabled, but experts can be reached at their general customer support number.
So, Mercedes Benz Bank Rus (owned by the German concern Mercedes-Benz) told socialbites.ca that the auto loan program is suspended until further notice in the spring. Volkswagen Bank (owned by the Volkswagen Group) said that loans for the purchase of cars have also not been issued since February, but a leasing program for legal entities is in place.
BMW Bank has also not considered applications for new car purchase financing since spring, but is only ready to provide loans for used dealer cars.
“If this is a used car, the interest rate will be 18 percent and the initial payment 40 percent for a period of up to three years.
We have stopped issuing loans for new cars since March, there is no information about renewals,” he said.
– He told “socialbites.ca” in “BMW Bank”.
Toyota Bank continues its activities provided by the dealers of the Japanese brand. In particular, the Toyota dealership in Moscow offered a loan of 14.6% per annum for the purchase of the RAV4 crossover.
The press service of the Central Bank of the Russian Federation declined to comment on the situation with the banks of automakers in the event of the withdrawal of foreign auto companies from the market.
You can take
There is no risk for domestic borrowers in case of withdrawal of foreign loan companies. Experts believe that even if foreign auto companies decide to sell or liquidate their banks, the debts will be sold to other financial institutions.
“The only thing you can save here is the percentage of the bank-to-dealer payment for lending.
And these commissions are now too high for dealers. For side banks, the situation seems lighter, ”says Anton Shaparin, vice president of the National Automobile Association, in an interview with socialbites.ca.
Given the current volatility of the central bank-regulated key rate and uncertain prospects for maintaining employment, it’s better to avoid taking out loans if possible, advises Shaparin.
Sergey Burgazliev, an independent automotive industry consultant, says that corporate banks have always had a more robust approach to evaluating their clients, and their approval rates are always lower than those of independent banks.
“For the buyer, such banks are advantageous in terms of more convenient and more affordable insurance services. It is beneficial for the consumer, ”Burgazliev tells socialbites.ca.
In the current situation, auto companies believe they will either close their banks or reduce the number of employees and functionality. If, in terms of the sum of payments, a loan and insurance in a corporate bank is more profitable than in an independent bank, it is quite possible to consider such an offer even now, said the expert.