2023-05-23 16:32:20
Currently, seven out of ten car loans – considering both new and used models – are turned down by banks in Brazil. This is what the CNC (National Confederation of Trade in Goods, Services and Tourism) pointed out.
What do you need to know:
- Seven out of ten car loans are refused in Brazil in 2023;
- Brazilian default risk made banks and financial institutions more cautious;
- Records of fraud in financing also led to greater selectivity in granting credit;
- The country’s current situation is also a factor that challenges the approval of new financing.
This has happened because the risk of default by Brazilians has made banks and financial institutions more cautious, as explained by Paulo Noman, president of Anef (National Association of Financial Companies of Automakers), in an interview with Autoesporte.
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In addition, greater selectivity in granting credit is due to records of fraud in financing in Brazil.
Financing in Brazil
Delinquency has advanced little in the country. Regarding vehicles, one-third of all new cars are financed. And defaulting contracts with delays of over 90 days correspond to 6.2% of all financing in 2023, considering CDC (Direct Consumer Credit) and leasing, according to Anef. Compared to 2022, advance is 1.3%.
In CDC financing, where the customer receives a bank loan to purchase the vehicle, the default rate is 5.5%. And in the case of leasing, where the bank assigns the use of the car through a lease plan, the default rate is 3.3%, according to the Central Bank.
In addition to the risk of default, the country’s current situation is also a factor that challenges the approval of new financing.
The maintenance of the Selic rate at 13.75%, the economic instability and the constant rise in prices have scared away new customers.
Paulo Noman, president of Anef (National Association of Financial Companies of Automakers), in an interview with Autoesporte
Context
Cash car sales correspond to 61% of new car acquisitions, driven by rental companies, according to Anef. The payment with financing represented 34% in the period. In all, BRL 47 billion were released by banks and financial institutions – which represents an increase of 5.2% over 2022.
Noman said the most affordable financing depends on a chain of events. Among them are: the country’s financial health and new government plans to guarantee cheaper vehicles.
The Brazilian doesn’t want a less safe and technological car, even if it’s cheap like the old ox feet. The government needs to ensure that the car becomes cheaper without compromising the product.
Paulo Noman, president of Anef (National Association of Financial Companies of Automakers), in an interview with Autoesporte
About the interest rate, which reflects directly on car financing, Noman sees a light at the end of the tunnel. “The market sees room for a future reduction in the Selic rate, but it hasn’t started yet,” he said.
With information from self sport
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