Some banks are offering vehicle loan rates as high as 30 percent per year. TheNational News Service quoted Maxim Kadakov, editor-in-chief of Behind the Wheel, noting that demand for cars in the market is likely to rise soon.
Kadakov explained that as the key rate climbs, car sales on credit could slow, since loans may already be available at 27 percent and, under certain terms, at 30 percent. The outcome varies by borrower and by bank. He added that many people expect prices to rise in the future because of increased recycling fees, so buyers may rush to purchase cars in the coming months.
Recently the Central Bank lifted the base interest rate from 16 percent to 18 percent annually, and its 2024 inflation forecast was revised from 4.3-4.8 percent up to 6.5-7 percent. GDP growth projections for the year were also nudged higher from 2.5-3.5 percent to 3.5-4 percent.
Plans to raise the recycling fee for cars by 70-85 percent are set to take effect on October 1, 2024, with a longer-term goal to multiply the current fee by roughly 3.9 times by 2030, adjusting the calculation coefficient to 58.62.
Dealers and analysts interviewed by socialbites.ca say that after recent growth, the Russian car market is expected to contract in 2024. They attribute the current demand to negative expectations rather than real price reductions, noting that buyers fear prices will rise again after the recycling fees increase and the Central Bank rate climbs. The article explores how steep the market decline could be.
Some analysts describe a trend in which Russian households are seen purchasing cars more urgently than usual.