In 2022, more Russian households turned to credit institutions to finance used cars, with a growing preference for models from Japanese and Korean brands. Analysts observed that this shift reflected a broader response to market conditions, including the rising cost of new vehicles and the limited availability of popular European models. As a result, loans for pre-owned cars became a significant portion of the overall car credit market, signaling a change in consumer purchasing behavior that year.
Data from mid-2022 showed a notable jump: the share of loans allocated to used cars increased by about 14 percentage points year over year, reaching roughly 58 percent of total car lending. The average loan size for each vehicle also rose, climbing by around 20 percent to approximately 1.2 million rubles, up from about 1 million rubles the previous year. This trend suggests buyers were willing to finance higher-priced used cars, potentially reflecting stronger demand for reliable, lower-mileage options in the context of economic uncertainty and fluctuating new-car prices.
Another observable shift was in the typical loan term. In 2021, customers often opted for 3 to 5-year loans. By 2022, terms extended to 5 to 6 years, indicating a preference for more extended repayment periods to keep monthly payments manageable while acquiring a vehicle that could serve as a longer-term asset. The consequence of these longer terms contributed to an overall increase in the vehicle’s useful life purchased with credit, with many borrowers planning to keep their cars longer and to replace them less frequently.
Bank analysts attributed the growth in used-car lending to two main factors: the sharp escalation in new-car prices and a reduced supply of popular European models on the market. When new cars became prohibitively expensive or scarce, buyers turned to the secondary market, often financing those purchases through more favorable terms offered by lenders for used vehicles. This dynamic helped sustain demand for used cars and supported a higher share of lending activity in that segment during 2022.
In addition to these domestic drivers, observers noted that the overall cost landscape for vehicles was shifting. The average price level for new cars had risen substantially, which influenced consumer expectations and substitution effects. As buyers recalibrated their budgets, the perceived value of reliable, well-maintained used cars grew, aligning with a broader trend toward long-term ownership rather than frequent replacements. In this context, lenders adjusted terms and risk assessments to accommodate longer repayment horizons while still managing credit quality.
Industry watchers also emphasized the importance of vehicle depreciation, insurance costs, and maintenance considerations when evaluating loan viability for used cars. While the lower upfront price of older models can be appealing, borrowers faced a spectrum of expenses that could affect total cost of ownership over the loan period. Financial institutions responded by refining their product offerings, including more flexible repayment schedules and greater attention to borrowers’ income stability, vehicle history, and mileage as part of the credit decision process. These refinements helped maintain access to credit for buyers seeking dependable transportation while balancing risk for lenders.
Ultimately, the 2022 lending landscape for used cars in Russia reflected a market adapting to shifting prices, limited new-car availability, and evolving consumer preferences. As buyers gravitated toward reliable used options, financing structures evolved to support longer terms and higher loan amounts, reinforcing the role of the used-car market as a key component of consumer credit during that period. This evolution underscores how macroeconomic factors and supply chain dynamics can reshape borrowing patterns in the automotive sector, encouraging both lenders and borrowers to adjust strategies in pursuit of value and practicality.