Brazilian consumers, who in the heaviest period of the crisis managed to maintain their jobs and income, have returned to buying cars in recent months, reflecting some of the reimbursements of confidence following the sign of economic recovery.
This is an explanation of credit line managers for vehicles of large Brazilian banks for the growth of segment financing, which contributes to an increase in sales during the year. Carmakers report optimism with the result in 2018 even after the trucks stopped, the world cup and the elections.
According to the Central Bank, the vehicle portfolio in September increased by 12% compared to the same month of 2017. Data are also shown in the results of banks in the third quarter. According to Leandro Diniz, director of the Bradesco lending and financing department, the combination of interest rates, the aging of the fleet and the beginning of a positive confidence curve brought demand to the market.
"The one who holds the credit is the same [consumidor] which I have already had, and now people are more willing to change cars, "says Rodnei Bernardino de Souza, director of Itaú. Those who usually have cars change every two or three years, and these people started to return to the market.
"It's still growing with moderate interest rates, we still have some time to get back to that, with demand driven, people who have missed buying and changing their car to enter the confidence cycle," says André Novaes, director of the company Santander Financing.
In his opinion, the forecast for this year will reach 3 million manufactured vehicles, still below 3.7 million achieved in 2013, a record in the market. It helps customers lower their base rate, which has fallen from 14.25% per year to a current value of 6.50%. With strong competition in line with these types of banks, they usually transfer the lowest costs to the consumer.
In this month, for example, banks sign loans with a minimum rate of 0.89% (excluding IOF and other costs, such as insurance, which is usually included in longer loans and increases the final loan). The average monthly rate, measured by the central bank, is 1.7%, the lowest in the financial system for the individual, together with the pay list for civil servants. Low rates are possible, they say, because the customer, when paying entry, is less willing to stop paying meals. In addition, the car is a guarantee in case of default.
This does not mean that banks have loosened the criteria for granting new funding. "Banks have learned better there to give out these loans and do homework. Banks do not have a bad credit," says Santanderova Novaes.
Before the change in appetite, Bradesco has a lot of room for growth.
"The bank has already approved nearly six million buyers for the purchase of vehicles, and before the analysis is another ten million," says Diniz. In this area, cars are betting to grow again. "To earn, the bank must lend someone," says Roberto Akiyama, vice president of the commercial automotive industry at Honda Automobiles, on the re-interest of banks in financing car sales.
"We have announced funding with incentive rates and good, strong banks. We gradually improve with credit approval," says Marcio Alfonso, president of Caoa Chery. According to industry expectations, Ford expects a 10% increase in sales in 2019, says Natan Vieira, vice president of Ford for marketing, sales and services in South America. "We worked with Bradescom and we are relatively high approval, in recent years there has been a trend of improvement," he says.
"Unemployment remains strong, this is a problem, but this industry shift is welcome to us. The retail company is a bit slower, but it responded," says Vieira. Roberto Bottura, president of Check Price (a company that specializes in pricing vehicles), has more careful reading for next year. It will not significantly increase the supply of credit in the market, as sales should not have very high increases.
"There may have been an improvement, but the new car market is likely to continue to increase in the coming year. Banks are hungry, but they are still scared because they have lost financing in 2015 and 2016, but they want to is being treated, "says Bottura.