Importance Today, car loans are the most in-demand type of banking products for the public. As for banks, car loans are the most balanced credit product in terms of profitability and risk. Therefore, banks are interested in increasing their participation in this market. Nowadays, the Russian car loan market has plenty of various offers. There are several types of automobile loans depending on requirements and financial possibilities of potential borrowers, including classic car loans, express automobile lending, factoring, car loans without down payment, buy-back and trade-in schemes. The number of car loans offered by banks has increased more than 8 times over the past 10 years. However, in 2014, the Russian car loan market faced a slowdown in the rate of growth, a rise in interest rates on car loans, and a natural decrease in consumer demand. The reasons of the recession include difficult economic situation, ruble depreciation, reduction in real earnings, growth of debt load of the population, and high cost of maintenance for car owners. Demand may grow with the help of the State assistance and available car loans. Most countries apply various methods to stimulate consumer demand, like State programs, decrease in tax burden for the purchase of eco-friendly and economic cars. Objectives The objectives are to research programs and conditions of car loans in Russian commercial banks, to identify the most important problems of car loans and the reasons of recession of the Russian car loan market, to define the main areas of further development of the car loan market. Methods To reviewthe Russian car loan market, I applied the economic, statistical and graphical methods. Results I have reviewed the specifics of the Russian car loan market, revealed the problems of Russian commercial banks and borrowers of this market segment, and identified the trends and development prospects of car loans. Conclusions and Relevance The study emphasizes that in the present difficult economic and political condition, when more expensive borrowings (18-19% interest rates declared by banks in fact increase to 25-30% when a borrower applies for a loan) and sanctions provoke a catastrophic slump in sales (by 30-50% as compared with the results of 2013) and bring down the Russian car market, when there is further depreciation of ruble and consumer incomes, and when people, in expectation of possible response sanctions in the form of restrictions on import of foreign cars, cause excessive demand for foreign cars, it is very difficult to talk about stabilization in the car market. To ensure positive dynamics of the market segment, in addition to the economic and political stabilization, it is necessary to change the system of automobile lending and to focus it on aligning the ratio of supply and demand.
Keywords: car loans, car loan market, car loan program, household debt load, car dealership, car showroom, State program, support, automobile market
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