Vehicle Purchase Financing Rises Steeply in 2019, Driven by Transportation Apps
RIO DE JANEIRO, BRAZIL – Vehicle purchase financing grew the most this year among all types of companies, according to data released on Friday, December 27th, by the Central Bank, in a trend primarily influenced by the widespread use of transportation Apps.
From January to November, this figure increased 71.1 percent. In 12 months, it grew 80 percent to R$47.853(US$12) billion.
At a press conference, Renato Baldini, deputy head of the Central Bank’s Statistics Department, stressed that the numbers show a new reality in relation to what occurred in previous years.
“Financing for vehicle purchases was mainly for private individuals, the share of legal entities was low, but this has been greatly changed,” he said.
According to Baldini, direct sales to rental company fleets have increased, which is associated with the leasing of vehicles to App drivers.
Companies such as Uber, 99 and Cabify are among the App companies operating in Brazil.
Corroborating the favorable scenario for the purchase of vehicles by companies, interest rates in the segment are also at their lowest historical level – 12 percent per year – in the midst of the reduction in basic interest rates conducted by the Central Bank. Currently, the SELIC is at its historical minimum of 4.5 percent.
Asked about the prospects for 2020, Baldini estimated that vehicle credit for companies is not yet showing signs of stabilizing.
“We don’t know how far it will go, but apparently it’s ongoing”, he noted.
Vehicles for families
The purchase of vehicles by private individuals has also grown significantly, albeit at a slower pace, on a broader financing basis.
In the first 11 months of 2019, this figure increased 15.8 percent, and 17.7 percent in the 12-month period, reaching R$197.210 billion.
In this case, average interest rates also reached their lowest level in the series in November, at 19.4 percent per year, according to the Central Bank.
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