Attention car buyers: Vehicle loan interest rates have dropped! What will happen in the second half of the year?

In December, the Central Bank cut the policy rate by 250 basis points, reducing it from 50 percent to 47.5 percent. While the impact of this decision on vehicle loan interest rates was a subject of curiosity, banks have begun to revise their interest rates downward as of the new year.

CURRENT INTEREST RATES ON VEHICLE LOANS

Vehicle loan interest rates at banks vary depending on the maturity and the loan amount. For example:

For a 250 thousand TL loan with a 48-month maturity, the interest rate is at the 3.49 percent level.

For a 400 thousand TL loan with a 36-month maturity, rates range between 3.56 and 3.70 percent.

Currently, most banks offer a loan limit of up to 400 thousand TL. There is talk that loan limits may increase in the coming period.

MARKET EXPECTATIONS AND THE SECOND HALF OF THE YEAR

Hayrettin Ertemel, President of the Istanbul Motor Vehicle Dealers Association (İMAS), stated in his remarks to Milliyet that the decline in interest rates is still limited, but they expect a more significant relief in the second half of the year. Industry representatives state that the market could become more active with the updating of credit growth rates and loan limits.

WHAT INTEREST RATE RANGE WOULD BE CONSIDERED A CHEAP VEHICLE LOAN?

While vehicle loan interest rates hovered between 1.50 and 2.00 percent between 2020 and 2023, current rates are at higher levels. According to experts, interest rates in the 2.50 - 3.00 percent range can be considered cheap vehicle loans under today's conditions.

Industry officials predict that interest rates will decline by small margins in the first half of the year, while more serious drops could occur in the second half.

These declines are expected to create activity in the new and used car market.