Igor Morzharetto, the deputy editor-in-chief of Za Rulem and a recognized automotive expert, notes that the Central Bank’s latest move to tighten the rules for consumer and car lending is unlikely to shake up the car market or sharply reduce the total number of loans. He suggests that the market should see only modest shifts, if any, and that car prices may stay roughly on course. His comments were shared with the Public News Service.
To recall, as of July 1, the Central Bank introduced stricter criteria for Russians seeking consumer and vehicle loans. The aim is to curb the debt load carried by households while safeguarding financial stability. In the view of several analysts, the tightening could trim car sales by about ten percent, though opinions vary on the trajectory for pricing and demand.
Morzharetto argues that lenders have already begun applying tighter screening for potential borrowers, so the immediate impact on vehicle affordability and price tags should be limited. Banks have sharpened their risk assessment processes, which means fewer applicants will meet the new criteria, yet those who qualify will still access credit with presentable terms.
As Morzharetto explains, historically the market saw a wide gap in loan approvals, with a sizable share of applications rejected. Today, the lending landscape is more cautious, and lenders prefer to avoid irreversible commitments. This prudent approach helps maintain financial health for both banks and customers, he adds.
The expert points out that current car loan interest rates hover around the higher end of the spectrum, often near 20 percent, which makes monthly payments challenging for many buyers. Still, manufacturers and finance partners are adapting by offering more favorable conditions on select models. Some cars now come with financing plans that spread the cost with lower upfront payments or extended terms, while other models may command interest rates in the low to mid-teens, which buyers historically perceive as a reasonable range under normal market conditions.
Morzharetto cautions that a single factor to watch is the upcoming recycling fee adjustments slated for August. These changes could alter overall ownership costs and, in turn, influence buyer timing and decisions in the broader market. Despite this, he sees a generally positive momentum across the sector, supported by renewed consumer interest and ongoing demand for new vehicles in both North American markets.
From a broader perspective, optimistic forecasts point to continued healthy activity, with potential growth in new-car purchases throughout the year. Analysts in Canada and the United States remain attentive to shifts in lending standards, inflation dynamics, and vehicle pricing strategies, all of which play into how many consumers will opt to buy new versus used or to delay purchases while saving for larger down payments.
In summary, the tightening measures are likely to reshape the makeup of borrowers rather than drastically alter the overall market trajectory. For lenders, the focus remains on prudent underwriting and sustainable loan portfolios. For buyers, the key is to evaluate affordability, explore varied financing options, and consider the total cost of ownership when making a decision to purchase a vehicle.
Earlier analyses pointed to a boom in auto lending in Russia, but the current environment indicates a more cautious, measured growth path is likely to prevail, with the market adapting to the new regulatory framework and consumer expectations in the coming months.