Russia Real Estate and Auto Credit Trends in 2024-2025
Vehicle lending costs in Russia have risen sharply, and experts believe the growth in auto loans may slow as high interest rates persist through the end of 2024. This assessment comes from Yegor Lopatin, who leads the Financial Institutions Rating Group at NKR Agency and spoke with It’s About Real Time about current loan dynamics.
Analysts expect a slowdown in auto loan activity in the early months of 2024 and again toward year end. January and February are typically slow for vehicle sales, and this year elevated loan rates are likely to magnify that softness. If rates stay elevated, the market could see a 20 to 25 percent cooling compared with the previous year, according to Lopatin. He underscored that the trajectory hinges on financing conditions and consumer demand in the automotive sector, which has faced pressure from higher borrowing costs.
There is some potential relief if a preferential vehicle loan program extends through 2024 to 2026. Lopatin suggested that without such support, loan origination would have contracted even more, hinting at policy influence as a meaningful factor in stabilizing lending activity. (Source: It’s About Real Time)
Automotive expert Igor Morzharetto echoed the view that higher rates should not deter Russians from considering car purchases on credit. He indicated a probable easing of loan rates in the latter half of the year while acknowledging that vehicle prices might rise as numerous promotional offers reach consumers. This combination could shape an uneven but active credit market for autos as the year progresses. (Source: It’s About Real Time)
Among the broader market currents, discussions have highlighted the appeal of Chinese cars for buyers seeking value, a trend noted in industry commentary as a factor shaping demand and loan dynamics. (Source: It’s About Real Time)