What is the new maturity limit for vehicle loans?

With the increase in interest rates on vehicle loans, many people have changed their car buying habits. However, there were also recessions in the automobile markets. According to new news today, the Banking Regulation and Supervision Agency has made new regulations regarding vehicle loans. So, what is the new maturity limit for vehicle loans? Here are the details..

What is the new maturity limit for vehicle loans? Here is the BRSA statement

Especially in recent times, banks have made significant increases in loan interest rates. Instead of interest rates ranging from 0.99 percent, interest rates ranging from 2 to 4 percent are now discussed in banks. However, it is possible to state that there is a slowdown in the markets, especially in the automobile sector, regardless of second-hand and new.

Along with the rising consumer loan interest rates, regulations have also been introduced to the rates on vehicle loans. With the new statements made by the Banking Regulation and Supervision Agency, the maturity rates for the purchase of vehicles with a value of 1 million 600 thousand lira and above on credit have been made.

According to this:

• The maturity limit for vehicles with a value of 1 million 600 thousand liras and below is 48 months,
• The maturity limit for vehicles with a value between 1 million 600 thousand and 3 million lira is 36 months,
• 24 months for vehicles worth between 3 and 4 million lira,
• For vehicles with a value between 4 million and 5 million lira, the maturity limit was determined as 12 months.

In the decision explaining the mentioned limitations, it was stated as follows:

In accordance with the fourth paragraph of Article 12 of the Regulation on Credit Transactions of Banks (Credit Regulation) and the fifth paragraph of Article 11/A of the Regulation on the Establishment and Operation Principles of Financial Leasing, Factoring and Financing Companies (Financial Institutions Regulation),

For electric motor vehicles produced by taxpayers falling within the scope of Provisional Article 12 of the Corporate Tax Law No. 5520 dated 13.06.2006;

a) Loan maturity limits regulated in the third paragraph of Article 12 of the Credit Regulation and the second paragraph of Article 11/A of the Financial Institutions Regulation;

• Forty-eight months for loans granted for the purchase of vehicles with a final invoice value of one million six hundred thousand Turkish Liras and below,
• Thirty-six months for loans granted for the purchase of vehicles whose final invoice value is over one million six hundred thousand Turkish Liras but not over three million Turkish Liras,
• Twenty-four months for loans granted for the purchase of vehicles whose final invoice value is over three million Turkish Liras but not over four million Turkish Liras,
• Twelve months will be determined for loans granted for the purchase of vehicles whose final invoice value is over four million Turkish Liras but not over five million Turkish Liras,

b) The ratio of the loan amount to the value of the vehicle in vehicle loans or financial leasing transactions to be made available to consumers for the acquisition of passenger vehicles, except for vehicle collateral loans regulated in the second paragraph of Article 12 of the Credit Regulation and the first paragraph of Article 11/A of the Financial Institutions Regulation; It cannot exceed seventy percent for vehicles with a final invoice value of one million six hundred thousand Turkish Liras and below,

• It cannot exceed fifty percent for vehicles whose final invoice value is over one million six hundred thousand Turkish Liras but not over three million Turkish Liras,
• It cannot exceed thirty percent for vehicles whose final invoice value is over three million Turkish Liras but not over four million Turkish Liras,
• It cannot exceed twenty percent for vehicles whose final invoice value is over four million Turkish Liras but not over five million Turkish Liras,
• It will be determined as zero percent for vehicles with a final invoice value of over five million Turkish Liras,

-It has been decided that this Decision will be announced to the Associations of Organizations and published on the website of the Institution.

So, what do you think about the maturity limit on vehicle loans?