Economy, Auto

Auto Loans Cut Short

Auto Loans Cut ShortAuto Loans Cut Short

The Central Bank of Iran and the Ministry of Industries, Mining and Trade issued a directive announcing that the new auto loans must stop on Sunday.

The auto loans, which were supposed to be given over a period of six months, lasted for only six days during which 110,000 people registered for the loans.

The plan stipulated that no more than 110,000 people would be allowed to take a loan worth a maximum of 25 million rials ($7,200 at market exchange rate), which should amount to 80% of the car price.

According to Mehdi Kasaian, a capital market expert, IKCO and SAIPA group have each sold 53,000 and 56,700 vehicles respectively during the six days, ISNA wrote.

Mostafa Khankarami, IKCO’s deputy for sales and marketing, said the group was prepared to sell more cars, but the CBI directive and the loan ceiling prevented it from doing so.

He added that IKCO will be delivering the cars within a month.

Some 85% of the loan-takers will finalize their purchase in the coming days. In that case, IKCO will have sold nearly 47,000 cars during the period.

 Chinese Cars

On Monday, one day after the CBI directive was issued, IKCO and Iran’s second largest carmaker SAIPA group stopped offering the cars on loan, Fars News Agency reported.

Modiran Khodro automotive group, which produces a range of models of the Chinese brand Chery in Iran, however, is reportedly still offering cars on a credit scheme.

According to a company official, Modiran was planning to take the offer down on Monday.

These companies were told that they could sell their cars under the scheme, as long as they provide the loans from their own resources.