Vehicle financing: larger portfolio with lower credit.

By Redação AutoIndústria | Translated by Jorge Meditsch

Data from Anef, the Brazilian manufacturers’ finance companies association, shows a 2% fall in credit liberated for vehicle financing from January through September from R$ 146.7 billion in 2021 to R$ 143.8 billion this year.

Nonetheless, the portfolio’s balance still grew, with R$ 363.3 billion, 13.1% over the same period last year. Direct Consumer Credit remains the most demanded credit modality, with R$ 360.9 billion, a 13.2% growth, while the leasing operations had a 4% fall to R$ 2.4 billion.

The Association emphasizes the tendency toward cash purchases in the automobile and light commercial vehicle market. Until September, 57% of the consumers decided for it, compared to 50% one year before. Direct Consumer Credit was used in 39% of the operations and consortium in 4%.

In the motorcycle segment, cash sales also grew, reaching a 35% share year-to-date, compared to 30% last year. The Direct Credit is responsible for 35%, but the consortium option went from 2% to 30%.

Trucks and buses financing had the highest Direct Credit demand, 40%, and Finame slightly increased, from 25% to 28%. Cash sales were 28% and consortium, 4%.

The institution registered an increase in delinquency up to September, both by physical and juridic persons. In the first case, the debts not paid in 90 days went from 4.2% last year to 5.7%, and in the second, from 1.6% to 1.9%.