Long car loans returned to the market

K-s banks that make loans for the purchase of new foreign cars for five years, the last three months has almost doubled. Simultaneously with the building of the timing experts predict the transition to a floating interest rate on long-term loans. Interest rates declined slightly
According to the company Prostobank Consulting on 06/21/2010, the number of banks that are among the 50 largest by assets, outstanding loans for the purchase of cars of foreign manufacture for a period of five years, representing 16 agencies. On 15.03.2010, the banks issuing the loans, was 9. Thus, the number of bank loans for the three months increased by seven organizations. Also increased and the number of bank loans for a period of seven years, up to four agencies, although in early 2010 in this segment was represented by only one bank.
However, other conditions for long-term loans remained virtually unchanged. Advances have remained the same (in most proposals for 40-70% of the cars), interest rates eased slightly. For example, the average rate on loans for the purchase of new foreign cars for five years for the three months fell by only 0.2 percentage points - up to 22.83% real per annum.
Along with the trend towards longer loan terms for the purchase of auto experts have noted the possibility of mass transfer banks in the floating interest rate. This is due to the complexity of predicting the value of resources in the long term and a ban on changes in interest rates on loans already granted.
"Given the fact that today in terms of competition, many banks offer car loans are no longer at 3-5 years, and at 6-7, while a decrease in advances, we can assume that the players, reinsuring, be inclined to increase the supply of floating interest rates. While banks are not always technically capable to do it. In future years it could become a mass phenomenon in the auto market, "- said Antonio Shaperenkov, Director of Product Management Retail VAB Bank.