A blow to automobile creditors by financing

Aysel YUCEL

ISTANBUL – A blow to the automobile market, which experienced a price increase of more than 30 percent in the first 5 months of this year, came from the financing side. BRSA, with the decision announced last night, limited the use of personal loans. It is stated that this decision will restrict access to finance for consumers who turn to personal loans due to the recent increase in vehicle loans, and this will have a negative impact on sales. On the other hand, the Central Bank of the Republic of Turkey (CBRT) increased the required reserve ratio applied to commercial cash loans in Turkish lira from 10 percent to 20 percent, which caused the interest rates on vehicle loans to rise. However, these developments are expected to have a limited impact on sales, as demand lags far behind supply due to the chip crisis.

Within the scope of new economic measures, following the announcement of the SPP by the Ministry of Treasury and Finance, the terms of consumer loans were shortened and the minimum payment amount was increased in credit cards, in line with the decision of the Banking Regulation and Supervision Agency announced last night. In the statement made by the BRSA, it was decided to determine the general maturity limit for consumer loans as 24 months for loans with a loan amount above 50 thousand Turkish Liras and below 100 thousand Turkish Liras, and 12 months for loans over one hundred thousand Turkish Liras. Previously, the BRSA had reduced the maturity limit for consumer loans over TL 50 thousand from 36 months to 24 months in September. Now, a new limit has been defined as 100 thousand TL and the maturity has been reduced from 24 months to 12 months.

Within the scope of other ongoing works of the BRSA, it is necessary to differentiate the loan value ratio in housing loans on the basis of amount, to direct loans to productive areas such as investment and export in order to improve the selective approach, especially commercial loans, and to increase the risk weight of loans to be extended to legal entities that perform derivative transactions with non-residents. announced that it would take immediate action.

Automotive sector representatives, speaking to WORLD, evaluated the effects of the BRSA’s step to narrow individual loans on automobile sales.

Otoshops General Manager Melih Mutlu, regarding the BRSA’s limitation on consumer loans, said, “With this limitation, the second-hand sector, which has experienced a price increase of 36 percent since the beginning of the year and 21 percent only in May, will restrict access to an important financing used by consumers for transportation to vehicles.” spoke. Saying that consumers who prefer to buy with consumer loans, they foresee that they will partially replace their needs with car loans, Melih Mutlu said, “On the other hand, we observe that many consumers tend to buy cash instead of loan products due to the high loan rates for the last 1 year. Therefore, we do not have any expectation that its impact will be high.”

“It will have limited impact on sales”

Vavacars Retail Group President Serdıl Gözelekli said, “The share of sales on credit had already decreased compared to the past. In addition, we are in a season of increasing demand. For these two reasons, we do not foresee any negative impact on sales.”

Cardata General Manager Hüsamettin Yalçın stated that the new regulation of the BRSA will force the consumer to support their down payment in the purchase of second-hand vehicles, and expressed that it will have a negative impact on second-hand sales.

Auto loans on the rise

Another decision announced within the scope of the new economic measures was that the Central Bank of the Republic of Turkey (CBRT) increased the required reserve ratio applied to commercial cash loans in Turkish lira from 10 percent to 20 percent. Gülan Automotive Board Member Alp Gülan said, “As the regulation of the BRSA does not include vehicle loans, its impact will be limited. However, another decision announced within the scope of new economic measures was that the Central Bank of the Republic of Turkey (CBRT) increased the required reserve ratio applied to commercial cash loans in Turkish lira from 10 percent to 20 percent. Therefore, as the costs increased, commercial loans increased a lot. Auto loan interest rates are on the rise today. It’s almost 3 percent. This will make it difficult for consumers to access finance for both new and second-hand vehicles.”