The Market Will Revive With The New Arrangement In Vehicle Loans

MASFED Chairman Aydın Erkoç made evaluations on the new regulation in vehicle loans carried out by the BRSA and stated that this way, both the new and second-hand sectors will become active.

Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç made evaluations about the decision to change the limits and limits regarding vehicle loans, published by the Banking Regulation and Supervision Agency (BDDK). Stating that they have been waiting for this regulation for a long time and that they are welcomed as the sector, Erkoç said:

''This regulation will activate the long-standing stagnation in the new and used car industry. In addition to the production and supply shortages in the new vehicle sector, the fluctuating course of the exchange rate also caused vehicle prices to increase, and the economic problems experienced due to the pandemic had a negative impact on the purchasing power of the citizens. Our citizens who do not use loans due to the limitation in vehicle loans will be able to use loans, and this arrangement will pave the way for vehicle trade.

Stating that they have been waiting for this regulation for a long time, Erkoç said, "The industry was waiting for this, we thank our officials. Our motor vehicle dealer colleagues could not sell vehicles on credit due to this limitation. As of March every year, there will be a movement in the automotive market, and there will be a revival with this new regulation. However, in order for the sector to experience a full dynamism, loan interest rates need to be lowered,'' he said.

According to the statement made by the BRSA, the loan rate for a vehicle worth 400 thousand TL was 70 percent. The maturity rate for loans extended to purchase vehicles with a final invoice value of 400 thousand Turkish Liras or less has been increased to 48 months. The maturity rate for vehicle loans between 400 thousand and 800 thousand Turkish Liras was 36 months, and 800 months for vehicle loans between 1 thousand and 200 million 24 thousand Turkish liras. The maturity rate for vehicle loans with a value between 1 million 200 thousand and 2 million Turkish Liras has been increased to 12 months.