Interest rates on auto loans are falling, but credit is unavailable

In recent weeks, the interest rate for 400,000 TL auto loans with a 36-month maturity had been reduced to 2.98%. With a new regulation implemented this week, the rate has dropped to 2.94%. For loans with a 48-month maturity, a limit of 280,000 TL is applied, and the interest rate for these loans has decreased to 2.85%.

A person taking out a 280,000 TL loan at a 2.85% interest rate pays monthly installments of 12,565 TL, resulting in a total repayment of 604,559 TL.

Experts state that the decline in interest rates is occurring gradually and that the downward trend in the policy rate is being reflected in auto loans. While some banks offer loans below 3%, the general average remains above the 3% level. However, low credit growth rates are creating difficulties in accessing credit.

Pointing out that loan amounts remain low compared to vehicle prices, experts state that unless maximum loan limits are updated, interest rate cuts do not provide meaningful relief for citizens. For this reason, a situation of "low interest rates but no credit" is being experienced.

The policy rate is expected to drop to 37% by the end of the year. If the cuts continue, it is projected that the average rate for auto loans could fall below 3%. However, credit growth rates, limits, and market balances will be decisive in this process.

Interest rate cuts are seen as one of the significant factors that could increase demand. An increase in demand could affect automobile prices. However, not only interest rates but also the speed of credit growth and limits will determine the course of the market.