Economy, Auto

New Car Models Join Credit Scheme

New Car Models Join Credit SchemeNew Car Models Join Credit Scheme

As the week progresses, more and more car manufacturers are voicing their willingness to take part in the new auto loan scheme that has given a boost to car sales.

The Chinese Voleex C30 produced in Iran by Rayen Automotive Group will now be included in the new credit scheme, according to a press release from the company.    

The car is sold for nearly 530 million rials ($16,000 dollars on market exchange rate), while the governmental auto loan ceiling has been set at 250 million rials ($7120 at market exchange rate) with an interest rate of between 16-18%, local automotive news website wrote.

Rayen will be providing its customers an extra loan worth nearly $5,000 to make their offer more competitive, but the interest rate on this second loan is still unknown as it is not backed by the wider scheme.

Voleex C30 is a compact car manufactured by the Chinese company Great Wall Motors and has been very popular with Iranian customers.

The company’s dealerships were supposed to start offering the vehicle with the new loans starting Saturday and no dealers so far have refused to accept the new terms.

Up until this week, it was understood by both the media and car buyers alike that the only cars included in the new auto loan deal would be those produced by Iran’s largest carmakers: Iran Khodro and SAIPA. However, through the intervening week, more car dealers have announced agreeing to accept the loan backed by the Central Bank of Iran.

The addition of Chinese-designed cars adds another wild card situation to the purchasing patterns of Iranians, as more segments of people could be swayed by the much newer models offered by the swath of Chinese car manufacturers.