Subsidiaries of foreign automakers operate as captive financial arms that continue to partner with customers, even as banks compete with favorable lending terms. Behind the scenes, these banks keep attracting borrowers with attractive low-rate loan offers.
For example, MC Bank Rus, a subsidiary tied to Mitsubishi, announced a favorable promotion across the entire Mitsubishi lineup. The bank confirmed that applications are being accepted and new loans are being issued, with no indications of scaling back operations in Russia.
“From July 15 the rate was reduced, allowing a consumer to purchase a new Mitsubishi with a credit rate of 9.9 percent per year,” stated Andrey Kochenkov, Director of Business Development at JSC MS Bank Rus.
Asked about potential withdrawal from the Russian market due to sanctions and production suspensions, the spokesperson noted that there is no such plan at this time.
RN Bank, part of the Renault-Nissan alliance, continues to operate and actively funds the purchase of both Renault brand cars and AvtoVAZ models previously associated with the alliance. Notably, the bank offers a four-year loan with a monthly payment around 5,000 rubles for a simplified Lada Granta.
“The Nissan Financial Services program remains in effect, and loan issuance continues,” commented the Russian branch of Nissan. The Infiniti hotline and Renault dealership in Moscow also confirmed ongoing loans through RN Bank programs.
“A 10 percent down payment, a term of 2 to 7 years, and interest rates ranging from 9.9 to 16 percent,” explained a sales manager at a Renault showroom in the capital.
Nevertheless, not all captive banks maintain operations. German automakers’ finance arms have signaled suspensions. Customer helplines are often disabled, though general support channels remain accessible for inquiries.
Mercedes Benz Bank Rus, owned by the German concern, reported that auto loan programs are suspended for the time being. Volkswagen Bank, also part of the Volkswagen Group, noted that loans for new-car purchases have not been issued since February, while leasing for legal entities remains active. BMW Bank has paused new-car financing since spring and is reportedly open to financing used dealer cars only.
For used vehicles, loans may still be available with higher rates—roughly 18 percent—along with a sizable initial down payment, and terms up to three years. A representative from BMW Bank confirmed that new-car lending has stopped since March, with no current plans for renewals.
Toyota Bank continues normal operations through its authorized dealers, including a Moscow-based dealership offering a loan rate of 14.6 percent per year for the RAV4 crossover.
The Central Bank of the Russian Federation declined to comment on the broader impact of foreign automakers potentially withdrawing from the market on their banking partners.
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Domestic borrowers face limited risk if foreign loan providers discontinue operations. Experts suggest that even if foreign automakers decide to sell or liquidate their banks, outstanding debts are likely to be transferred to other financial institutions.
“One practical outcome is the potential reduction in dealer payments associated with lending, which could lower commissions for dealers,” said Anton Shaparin, vice president of the National Automobile Association, in an interview. He cautioned that current central bank rate volatility and uncertain employment prospects argue for prudence when considering new loans.
Sergey Burgazliev, an independent automotive industry consultant, noted that corporate banks often apply stricter approval criteria, resulting in lower approval rates compared with independent lenders.
For buyers, corporate banks can offer advantages in terms of more convenient insurance services and overall affordability. In the current climate, automakers may either restructure their captive banks or reduce staff and functionality. If the combined cost of loan payments and insurance through a corporate bank remains more favorable than that offered by independent lenders, such options may still be worth considering.