2023-07-30 14:06:35
A greater demand for new cars and the solid dynamism of employment at the national level have awakened vehicle credit, which in May achieved an advance of 9 percent in real terms, compared to the same month last year, after three years immersed in a slowdown, show figures from the National Banking and Securities Commission (CNBV).
In addition to the above, the balance of non-payment of this type of financing is the lowest within the segment of consumer loans, and even lower than that of financing for housing, below 2 percent, confirm the data from the Regulation organism.
According to the CNBV, up to the fifth month, the balance of the current automotive loan portfolio stood at 171 thousand 661 million pesos, an increase of 15.2 percent in nominal terms or 9.4 percent in reais – when discounting the inflation–, if compared to the 148 thousand 934 million reported in the same month last year.
The regulator’s figures indicate that between May 2019 and the same month of 2020 growth was 3.3 percent; between 2020 and 2021, a period marked by the pandemic, the portfolio balance fell by 1.4, and between 2021 and 2022, growth was one percent, all of the above in nominal terms.
“It is impressive how the demand for car credit has grown throughout 2023 and an example of this is the data for May. Despite the fact that prices have risen, auto sales this year indicate that they will sell over one million units,” said Jorge Tello, an analyst in the financial sector.
Agencies, only on credit
The growth of auto loans, Tello explained in an interview, is due to the fact that “the formal economy has performed well and also because buying a new vehicle can only be done on credit, there are waiting lists because there is apparently little inventory.
“It is a practice of the agencies to, so to speak, force customers to buy on credit and it is having success. So for these reasons it is to be expected that credit will continue to increase during this 2023”, added the expert.
Auto loans are included in the consumer loan portfolio, and are those with the lowest default levels within the entire segment, which includes credit cards, payroll and personal loans.
According to statistics, the delinquency rate (Imor) stood at 1.25 percent –equivalent to 2 thousand 145 million pesos–, which meant a decrease of 0.62 percentage points compared to what was reported in the fifth month of the previous year.
The Imor on credit cards is 3.01 percent; in payroll loans, 2.82, and in personal loans, 4.80 percent.
“The low delinquency is due to the fact that people are attached to the car and it is the least thing they want to lose. It is a matter of feeling, it is not rational, but they get into debt to have the best possible vehicle even if they reduce spending on other goods, but they do not lose the car.”
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