Experts informed how the key rate cut will affect the cost of car loans in 2022

The Central Bank recently lowered its key rate by 3 percentage points after its emergency increase to 20% at the end of February. Experts interviewed by the agency "AUTOSTAT" told how this decision will affect interest rates on car loans, and how much it will support the demand for new cars in the face of high prices. According to Alexander Potapov, director of the lending factory for the retail business of RGS Bank, after the record-breaking increase in the key rate of the Central Bank at the end of February, interest rates on car loans also increased naturally.

Currently, they were 22-35% depending on the type of loan and conditions: availability - absence of collateral, down payment, insurance options, brand, car segment (new - used), etc. Taking into account the subsequent reduction in the key rate to 17% car loan rates are expected to fall in the near future. This process can drag on for several weeks, because everyone will follow the market movement. But in general, the average rate on car loans should go down in the range of 2-3% (RGS Bank also adjusted rates down on April 13th).

"Currently, interest rates on loans are determined first of all by the cost of resources, so further dynamics will depend on the decisions of the Bank of Russia. Now the regulator has set a downward course. We believe this trend will continue. And by the end of the year, the key rate may be reduced to 10-12%. Accordingly, car loan rates will be reduced by a comparable amount," Anton Pavlov, Deputy Chairman of the Board of Absolut Bank, predicts.