Belarusian used-car market turned out to be overcrowded, as imports of only the most popular cars aged 3–5 years over the first four months of this year increased by almost 5%, and those older than that age by 20% compared with the same period last year.

The cars were initially planned to be re-exported to Russia, but the re-export did not take place due to higher recycling fees, so they “got stuck” here, and as a result prices for them fell: those cars that a year ago “went” without any problem for $13,500 are now barely selling for $12,000.

But there is one nuance: if the “ceiling price” of European budget-segment brands is around the $10,000 mark, then Chinese cars with low mileage stably hold at the level of $30,000.

Banks are not standing aside from the car business and are ready to help finance the purchase of used cars with their loans.

Let’s look at banks’ offers and calculate how much buying one of the most popular cars among Belarusians, the Peugeot 308 SW with a 1.5-liter diesel engine, will cost the family budget.

On what terms do banks provide loans

The standard terms offered by banks look like this: the client pays 10% himself, the remaining 90% is provided by the credit and financial institution as a loan for a term of 10 years. But there is one bank ready to provide a loan for only 2 years.

So, we buy a Peugeot 308 SW for $12,000, which at today’s (as of June 9) National Bank exchange rate is approximately 33,600 Belarusian rubles. The bank will provide a loan in the amount of 30,240 rubles. We will use this figure as a starting point.

Top 5 most favorable terms for car enthusiasts

Let’s start with the harshest among the favorable ones.

When applying to VTB Bank, you need to know that the loan will be provided at 17.96% per annum for a term of only up to two years, but without collateral or guarantors. The car can be purchased from either a legal entity or an individual. Under such constrained conditions for the client, you will have to pay approximately 1,515 rubles monthly, which is a little more than half of the average accrued salary in the country.

If we are going to take a car no older than 8 years, you can get additional financing by contacting Bank “Dabrabyt”, which is ready to provide an “Avtonado” loan at a rate of 17.96% per annum for a term of 10 years. True, the car can only be purchased from legal entities registered in Belarus. The monthly payment will be only 705 rubles.

The same amount will need to be paid if using the "Car with Mileage" loan from Belgazprombank. In addition, the list of sellers has been expanded: the car can be purchased from an individual, an individual entrepreneur, a legal entity, or a car dealer.

Belvnesheconombank offers potential car owners a loan with a one-month grace period, during which 9.9% per annum is accrued; the rest of the time the rate will be 17.96% per annum. The monthly payment after the grace period ends will be approximately 704 rubles.

Belagroprombank provides the most favorable loan for a car (electric car), which can be purchased from individuals and dealers at 17.75% per annum. You will need to pay 700 rubles each month.

As we can see, the payments are quite affordable for the average budget of a Belarusian family. It is no surprise that roads are increasingly congested and parking spaces are in catastrophic shortage.