Economy, Auto

Auto Loans Could Return

Auto Loans Could ReturnAuto Loans Could Return

The auto loans, backed by President Hassan Rouhani’s administration and the Central Bank of Iran, which offered 250 million rials to each buyer of a locally developed car, could return.

Asre Khodro, a local automotive website citing Eghtesad News’ interview with an expert, Alireza Pourhassani, suggests that the loan may once again be offered to people keen on purchasing a car but lacking the ability to make a full cash payment.

The loan scheme was ended abruptly after applications exceeded the 110,000 ceiling in six days.

According to the site, Pourhassani noted that as car sales have declined again due to lack of credit, the auto loan may be brought back to sell select brands.

The expert said downward forces on the market currently require a loan like the previous one due to the prevailing recession.

“The slowdown in sales is due to the ongoing quality issues with locally produced cars verified by the national standards association and the lack of credit in the market,” he said.

“If the government were to reintroduce the scheme of offering 250 million rials for purchasing a car, many of these pressing issues can be put aside.”

Pourhassani further said that in the next Iranian year (starting March 20, 2016), carmakers need to consider several factors when selling their vehicles.

These factors include quality of domestic vehicles, price of such vehicles as they match the price quoted by complete knocked-down cars, currency fluctuations and changes in regulations such as customs tariff.