The Russian auto loan market is gradually transitioning to austerity mode. Buyers have become more cautious about purchasing a car on credit, and banks, in turn, are stepping up screening of potential borrowers. Against this backdrop, the average auto loan amount fell noticeably in April, with the new car segment experiencing the greatest decline.
According to Balance Platform analysts, the average auto loan in April was approximately 1.43 million rubles. In March, this figure reached 1.49 million rubles, meaning it decreased by approximately 4% over the month.
At first glance, the decline appears small, but it is significant for the automotive market. The loan size is directly related to the purchase budget: if the borrower is willing to take less money from the bank, they are forced to either look for a more affordable model, increase the down payment, or postpone the purchase.
New cars have become too expensive for some borrowers
The change in buyers’ strategies is especially noticeable in the new car market. In January, the average loan for a new car was approximately 1.58 million rubles , while by April it had decreased to 1.43 million rubles.
Thus, over the course of several months, the average loan amount has decreased by approximately 150 thousand rubles.
This may indicate not only stricter banking requirements, but also a change in the behavior of motorists themselves. Buyers are increasingly considering not the maximum price of a car they can buy today, but the size of the future payment and the total overpayment.
As a result, some customers are switching to more affordable trim levels, choosing cars of a smaller class, or increasing the down payment.
The situation in the secondary market appears more stable. The average loan size for a used car remains at approximately 1.44 million rubles . The difference with new cars has now virtually disappeared, although the cost of specific cars and lending terms can vary significantly.
Why banks have become more cautious about issuing car loans
One of the main reasons for this change in the situation remains the high cost of borrowed money and the increased attention of banks to the risk of default.
For a credit institution, a car loan is more than just an appraisal of the car’s value. The bank analyzes the client’s income, debt burden, credit history, employment stability, and down payment amount.
Therefore, formally meeting the loan requirements is no longer sufficient. The higher the cost of the car and the loan amount, the more carefully the bank evaluates the client’s financial situation.
In some cases, to purchase a new car, the borrower requires a verified income of 200,000–250,000 rubles per month. For used cars, the requirements may be more lenient – the income guideline in some offers starts at approximately 130 thousand rubles.
Moreover, specific requirements vary from bank to bank and depend on the loan amount, term, down payment, and the client’s credit history.
Buyers have begun to save not only on cars
The change in the average loan size reveals another important trend: Russians are adapting to the expensive car market.
While a few years ago, a loan allowed them to significantly expand their purchase budget, now borrowers more often use it to supplement their own savings.
A common scenario is as follows: the buyer puts aside some money, then makes a larger down payment and borrows only the missing amount from the bank. This allows you to reduce the monthly payment and lower the overall overpayment.
Another option is to switch to a more affordable trim level or model.
This can be especially noticeable in the new car segment, where the cost of many popular crossovers already significantly exceeds the psychologically comfortable level for the mass buyer.
A long loan term helps the payment, but increases the overpayment.
One of the few ways to reduce the monthly payment remains to extend the loan term. However, this solution has a downside.
For example, with the same loan amount, a loan for five or seven years will look much more attractive in terms of the monthly payment, but the final overpayment will be higher.
Therefore, comparing bank offers only by the monthly payment amount is wrong. The buyer needs to consider the total cost of the loan, the interest rate, additional services, the down payment amount, and the total payment amount .
In a high-finance environment, even a relatively small reduction in the cost of a car may be more advantageous than extending the loan term.
What does this mean for the Russian auto market
A decrease in the average auto loan amount is a potentially negative signal for the new car market. If banks approve smaller amounts, and buyers are unwilling to increase the down payment, some of the potential demand shifts to more affordable price segments.
For dealers, this means the need to more actively work with inexpensive trim levels, discounts, special loan programs, and cars with a more affordable cost of ownership.
For buyers, the situation is different. Now, it’s especially important to consider not only your ability to obtain a loan, but also how comfortable your payments will be over the entire term of the contract.
The main conclusion is that car loans are gradually ceasing to be a tool for increasing your purchase budget. It is increasingly used to cover the difference between the buyer’s savings and the cost of a relatively affordable car.
If this trend continues, the Russian car market may face a further shift in demand towards cheaper models, used cars and trim levels with a minimum set of options.
