Economy, Auto

Loans Make Car Sales Skyrocket

Loans Make Car Sales SkyrocketLoans Make Car Sales Skyrocket

As the new auto loan scheme enters its fifth day, more than 100,000 people have signed up for the new scheme, according to a new report.

Iran Khodro Company, the country’s top car manufacturer, announced on Friday it alone had over 53,000 requests for new vehicles and 43,000 of all applicants had paid the down-payments on their requested vehicles.  

As of Saturday, carmakers announced that due to the unprecedented number of people applying for the loan, stocks have now run out and those ordering many of the vehicles will have to wait until Q2 2016 to get their cars.

The best-selling cars are now the Peugeot 405, Peugeot 206 and Samand, Tasnim News Agency reported.

SAIPA group, the second largest carmaker, has announced that it sold 57,844 vehicles and Pride, Tiba and Tondar 90 (Dacia-Logan) have been the best-selling models.

The car offer, which was initially aimed at selling 21 models produced by the two main manufacturers, now includes non-Iranian cars assembled domestically.

With the additional vehicles included in the scheme, which opens up another market of buyers, the Central Bank of Iran, which is backing the loans, has not said how long the loan will last.

Earlier in the week, reports from car showrooms across the country suggested that some car dealers were only offering a four-year loan instead of the seven-year loan initially offered by the carmakers, raising the ire of many car buyers on tight budgets.