by Car loans in Russia have practically come to a halt. In March, local banks approved only 10% of the credit applications for car purchases.
This did not occur even during the coronavirus epidemic – in early 2020, 26% of applications were approved. Moreover, interest rates on loans are constantly rising.
Sanctions against the Russian Federation and the subsequent economic collapse have forced banks to tighten credit requirements. The population of the aggressor country is rapidly impoverishing, raising questions about the solvency of car loan buyers.
Moreover, new cars in Russia continue to become more expensive – in March, prices increased by 30-60%, depending on the brand and model. For this reason, the demand for car loans has also decreased.
