In 2023, Russian borrowers continued to use vehicles as collateral when applying for auto loans, with domestic brands like Lada and well-known foreign makes such as Hyundai and Kia frequently pledged. This trend is highlighted in a study conducted by CarMoney, a car loan service that aggregates information from market observations and consumer reports. The data show that AvtoVAZ vehicles moved up in prominence, climbing from seventh place in 2022 to third by the end of the previous year. The shift underscores how borrowers gravitate toward familiar, locally produced cars alongside popular imports when securing financing for a vehicle purchase.
What stands out in the findings is the displacement of traditional leaders in the collateral rankings. Ford, Toyota, Volkswagen, and Nissan, historically dominant in securing auto loans, were challenged by a rising share of domestic models on the collateral list. Yet the report also confirms that Korean brands—Hyundai and Kia—remained the most frequently pledged vehicles, continuing to set the benchmark for what borrowers and lenders consider reliable collateral when financing a vehicle purchase.
The study records Hyundai’s share of pledged vehicles for the 12-month period of 2023 at 9.8%, with Kia following closely at 8.1%. Lada secured a 6.8% share, marking an increase from 5.5% in the prior year. After these top three, other brands such as Ford, Toyota, Volkswagen, Nissan, Renault, Chevrolet, and Skoda are listed in the collateral hierarchy, reflecting a broad spectrum of preferences among borrowers and lenders across different segments of the market.
There was also a notable rise in the pawn of Chinese-made cars, with annual growth in this category reaching 33%. This uptick signals evolving consumer choices and the expanding presence of more affordable, value-oriented options in the auto-loan market, alongside changes in dealer financing practices and lending policies that influence collateral selection. These patterns illuminate how the mix of collateral evolves in response to price points, brand perceptions, and perceived reliability among borrowers seeking financing for both new and used vehicles.
The broader context shows that the affordability of popular crossovers has become a central issue for many Russian buyers. As prices continue to shift, the appeal of certain brands as loan collateral reflects a combination of brand loyalty, residual value, and the practical realities of financing in a competitive market. Lenders often weigh these factors when assessing risk, pricing terms, and the likelihood of loan recovery, while borrowers weigh the same attributes against monthly payment obligations and long-term ownership costs. This dynamic landscape reveals how consumer preferences, supplier networks, and credit options intersect to shape the choices that secure auto loans in today’s market [1].