40% interest rates: expert explains why it is impossible to buy a new car on credit in Ukraine.

Problems with car loans hinder the development of the automotive market in Ukraine

Due to high interest rates and limited loan terms, most citizens cannot afford to purchase a new car. This was reported by automotive expert Yevgen Yermolov.

'Currently, car loan rates reach up to 40% per annum, and the loan term is limited to three years. These are unrealistic conditions for buyers,' the expert emphasized.

Compared to European countries, where about 70% of cars are purchased on credit or leasing, the situation in Ukraine is unfavorable. This leads to postponing purchases or turning to the used car market.

The market is divided into affordable cars costing up to 10-15 thousand dollars, which are used in taxis or for commercial transport, and premium new cars costing from 100 thousand dollars.

Earlier, during Yushchenko's presidency, car loans were accessible. However, the crisis with foreign currency loans and tightening lending conditions led to a difficult situation in the car market. According to Yermolov, the Ukrainian car manufacturer 'Eurocar' could significantly increase production if credit conditions were more accessible.

High interest rates and the complex situation with lending also affect car imports - the Ukrainian market is actively filled with used cars from Europe.

To improve the situation in the automotive market, it is necessary to lower credit rates and adopt a comprehensive approach to developing the industry, the expert points out.

Today, high interest rates on loans are the main factor hindering the development of the automotive market and complicating the renewal of the country's vehicle fleet.

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