Central Bank's interest rate cut reflected in auto loans: How much is the repayment for 250,000 TL?

Following the Central Bank's decision to cut the policy rate, this move began to reflect in loan interest rates as of the first month of 2025. The most favorable auto loan installment for a 12-month maturity has become 27,987 TL.  

According to the report in Türkiye newspaper; the automotive market entered the new year with new expectations. Following the last regulation made in 2022, at the point reached today, there are no new cars left that fall into the 45%, 50%, 60%, and 70% SCT (Special Consumption Tax) reduction brackets based on current prices. While all vehicles are now included in the 80% SCT bracket, expectations for a tax base regulation have begun to rise in the market.

It is stated that if an SCT regulation is implemented, “second-hand” car prices could also decline. While no steps have been taken on this matter yet, attention has also turned to auto loan interest rates. 

Following the first interest rate cut from the CBRT last month, declines have also begun in auto loan interest rates. A new cut in the policy rate from the CBRT is also expected next week.

250,000 TL LOAN/12-MONTH MATURITY PAYMENT

The most favorable auto loan for a 12-month maturity is offered by ING Bank at a rate of 3.74%.

Accordingly, for a 250,000 TL loan:

-The monthly installment is 27,987 TL.

-The total repayment is 337,422 TL.

-The interest burden is 35 percent.

250,000 TL LOAN/24-MONTH MATURITY PAYMENT

The most favorable auto loan for a 24-month maturity is offered by Akbank at a rate of 3.70%.

Accordingly, for a 250,000 TL loan:

-The monthly installment is 17,784 TL.

-The total repayment is 428,399 TL.

-The interest burden is 71.35 percent.

250,000 TL LOAN/36-MONTH MATURITY PAYMENT

The most favorable auto loan for a 36-month maturity is offered by Alternatif Bank at a rate of 3.69%.

Accordingly, for a 250,000 TL loan:

-The monthly installment is 14,717 TL.

-The total repayment is 531,380 TL.

-The interest burden is 112.55 percent.

250,000 TL LOAN/48-MONTH MATURITY PAYMENT

The most favorable auto loan for a 48-month maturity is offered by Alternatif Bank at a rate of 3.59%.

Accordingly, for a 250,000 TL loan:

-The monthly installment is 13,139 TL.

-The total repayment is 632,234 TL.

-The interest burden is 152.90 percent.

Bankers state that taking out long-term loans may not be the right strategy due to interest rate cut expectations, warning: “Especially for 36 and 48-month loans, more favorable rates may be found in the near future. 

Consumers should keep the maturity as short as possible for their loan needs while interest rates are falling. This way, if there is a decline in interest rates, the loan they took at a high price will mean less loss.”

News Source: 12punto