In recent data on car loans, Hyundai vehicles have emerged as a common form of collateral among Russian borrowers. The findings stem from a study of the CarMoney car loan service, reported by socialbites.ca.
Across 2023, Hyundai cars topped the list of preferred collateral for auto loans. They surpassed the previous leader Kia, yet together these two Korean brands still represented roughly 18% of all vehicle pledges in Russia, according to the study.
Looking at the first nine months of 2023, Hyundai’s share of pledged cars stood at 9.8%, up from 9.2% in 2022. Kia followed with 8.1%, ranking second. Volkswagen accounted for 6.3% and Toyota for 6.1% of the pledged vehicles during the same period.
Local brand Lada grew its standing to sixth place with a 6.1% share after climbing from seventh. Nissan, Renault, Chevrolet and Skoda filled subsequent spots in the ranking, illustrating a diversified mix of brands relied upon by borrowers.
Moreover, there was a notable acceleration in pledges involving Chinese-made cars in 2023. Analysts estimate year-on-year growth in this segment at about 33.2%, signaling a shifting preference among some borrowers toward newer entrants in the market.
The ranking was derived from an analysis of more than 15 thousand collateral transactions, representing more than half of all car-secured loans taken by Russians during January through September of the year. The breadth of the dataset provides a broad view of how borrowers in the region used vehicle collateral to access credit in a changing macro environment.
These shifts in collateral preferences reflect broader dynamics in Russian consumer credit, including considerations of vehicle depreciation, financing terms, and the availability of different brands in auto loan portfolios. While Hyundai and Kia led the charts, the continued participation of brands like Volkswagen, Toyota, and Lada shows that borrowers weigh factors such as price, reliability, and resale value when pledging a vehicle as collateral. The rapid rise of Chinese-made cars in this space may also point to evolving price competitiveness and perceived value among buyers navigating a competitive loan market. experts caution that pledged car trends should be interpreted in the context of broader economic conditions, credit access, and regional market variations.
Overall, the study highlights how consumers increasingly view certain car brands as reliable collateral in securing financing. The mix of brands pledged by borrowers offers lenders a varied risk profile, while borrowers benefit from access to credit secured by assets that align with their preferences and budgets. The evolving landscape suggests ongoing changes in how auto loans are structured and what borrowers consider when pledging a vehicle as collateral.