Those planning to buy a car have been waiting for a reduction in loan interest rates for a long time. Interest rates, which have been rising due to tight monetary policies, have limited vehicle sales. The automobile market has shrunk by nearly 15%. Meanwhile, banks have made an optimistic prediction about the vehicle market. Here is the current situation with vehicle loans… How much are vehicle loan interests? Is it advisable to take out a vehicle loan? How much is the repayment for a vehicle loan?

The tight monetary policy that the Central Bank has been implementing for a long time has led to a significant increase in loan interest rates. Rising costs and high interest rates have restricted demand for vehicle loans. The automobile market has decreased by almost 15% in the January-September period.

Due to the recent contraction in the market, car companies have announced consecutive campaigns. However, demand remained significantly limited. High interest rates and loan restrictions have led citizens to postpone their plans to purchase vehicles.

The Central Bank announced the results of the bank credit tendency survey for the third quarter. According to this, banks have indicated that the tightening trend in vehicle loans is coming to an end. As a result, banks have signaled a decrease in vehicle loan interest rates for the last quarter of the year.

According to CBRT data, the downward trend in vehicle loans continued in September. As of September 27, the average vehicle loan interest rate decreased to 42.67%. This figure had peaked at 55.36% in July. A decrease of approximately 13 basis points has been recorded in the last 3 months.

Looking at banks, vehicle loan interest rates range from 4% to 6%. Some banks have annual cost rates that can reach up to 158%. For a 400,000 lire vehicle loan, it is calculated as follows:
Interest rate: 4%
Term: 48 months
Monthly installment: 24,757 TRY
Total repayment: 893,263 TRY
Annual cost rate: 84.29%
Interest rate: 5%
Term: 48 months
Monthly installment: 13,781 TRY
Total repayment: 662,502 TRY
Annual cost rate: 115.41%
Interest rate: 6.2%
Term: 48 months
Monthly installment: 16,544 TRY
Total repayment: 795,127 TRY
Annual cost rate: 155.12%