Since last year, the logistics crisis has impacted the vehicle inventory in Colombia and the world. Although the first thing to keep in mind is that not all the references are sold out, since the brands had a stock prior to the pandemic and container crisis, for new or specific models the waiting time can range between 30 days, six months and up to a year.
Despite this panorama, the automotive market is recovering slowly, since at the end of the first quarter of 2022, 57,429 vehicles were registered, which represents an accumulated growth of 0.9%. In addition, Colombians continue to request loans to purchase cars.
“The replacement of vehicles in Colombia occurs every five or seven years, which has been postponed due to the global crisis and, in addition, the need to have your own vehicle increases with the conditions of biosecurity, safety, reliability and legitimate aspiration. of Colombian families”, said Juliana Rico, executive director of the Andi Chamber of the Automotive Industry.
Now, the banks with the best rates (EA) for this line of credit are Banco de Bogotá, with 9.51% interest; AV Villas Bank, with 10.82%; and Banco de Occidente, with 12.28%. While the financial entities with the highest rates for this segment are Banco Caja Social and Banco Agrario, with 18.92% and 17.38%, respectively.
“The supply of vehicle credit is maintained, although it is evident that the crisis generated by the pandemic also affected the automotive sector. In addition, the imported one represents approximately 70% of the loans, and the acquisition times were lengthened by the crisis in logistics, a fact that greatly chills the decision when purchasing a new vehicle, also impacting its financing. In these scenarios, the used car market tends to strengthen,” said Wilson Triana, an expert and consultant in banking and insurance.
Another loan option that is gaining strength is that of hybrid and electric cars, since some entities finance up to 100% of the car, but the client pays capital, interest and additional charges. It can also be financed with a term of up to 72 months.
“Our rates are very competitive. For example, one of our most important businesses is focused on hybrid and electric vehicles; and one in four cars of this type is financed by Sufi with very attractive rates and conditions”, Alejandro Botero, CEO of Sufi, an entity of the Bancolombia Group, told LR.
Other companies that offer loans for this segment are Davivienda (9.77%), Bbva (8.45%) and Finandina (12.55%). It is noteworthy that the rates may vary depending on whether it is a used or new car, so it is recommended to seek advice from each bank.
As analysts point out, loans for used cars are also gaining strength due to logistical cost overruns and the availability of raw materials. According to Mercado Libre, the demand for vehicles in this segment has grown up to 79% online, positioning digital platforms for the sale of more units.
“During the first quarter of the year, the demand for ads published on the platform increased by 79%, in terms of used cars. Compared to the last quarter of 2021, we see an increase in supply of 11.4%. new vehicles, demand grew by 66% and purchase intent increased by more than 20%,” the company said.
Insecurity raised car insurance premiums
According to data compiled by the Federation of Colombian Insurers (Fasecolda), as of March 31, 2022, the insurance industry issued premiums for $1.08 billion in the automobile category, which showed an annual growth of 21.32% and a 10.84% share in the sector. The variation in policy costs depends on factors such as accident rates or high levels of insecurity. Only in the first three months of the year, the National Police reported an increase of 11.20% in cases related to car theft.
