Vehicle Loans: Lower Demand in Nicaragua

In this scenario of economic crisis, the Nicaraguan market reported a 25% decrease in the balance of the vehicle loan portfolio between December 2019 and September 2020.

Wednesday, November 18, 2020

Data from the Superintendence of Banks and Other Financial Institutions (Siboif) detail that at the end of last year the balance of the loan portfolio requested to buy a vehicle amounted to $199 million, but in this context of falling productive activity generated by the outbreak of covid-19, the balance recorded as of September 2020 fell to $149 million.

See "Vehicles: Sales Potential by Brand"

For the period in question, the number of loans requested for the purchase of a vehicle also fell considerably, from 28,347 to 23,230, an 18% reduction.

Although the number of loans granted by banks shows a downward trend, vehicle sales in the country are expected to improve by the end of 2020.

You may be interested in "Motorcycles: What Brands Are Consumers Thinking About?"

Laprensa.com.ni reviews that "... In the last two years, due to the closing of the bank financing tap, some vehicle distribution companies opted to create their own vehicle financing programs, which could explain in part the basis on which the sector expects to grow."

According to CentralAmericaData's research, at the beginning of the second semester of 2020, of the total number of people in Nicaragua exploring options to access credit via the Internet, 3% of consumers were interested in a vehicle loan. Vehicle Loans: Lower Demand in Nicaragua.

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More on this topic

Vehicle Sales: Optimism in Panama

January 2021

After a 50% year-on-year fall in new car sales in 2020, Panamanian businessmen expect a 25% increase in the number of units sold in the local market by 2021.

The covid-19 outbreak generated a health and economic crisis that severely affected the automotive industry. The most recent report of the Comptroller General of the Republic specifies that between January and November 2019 and the same period of 2020, the number of new vehicles sold in the Panamanian market decreased 54%, going from 44,101 to 20,349.

Car Sales Collapse Again

May 2020

During 2019 and the first month of 2020 in Nicaragua, light vehicle distributors reported that their income improved compared to 2018, however, in February and March of this year sales fell again, due to the crisis caused by covid-19.

In 2018 a political and economic crisis occurred in the country, which impacted the sales of the automotive sector, since for that year on average 200 new units of light vehicles were sold per month.

Vehicles: Sales Would Fall 50% This Year

April 2020

Due to the crisis generated by the Covid-19, car dealers in Panama estimate that during 2020 the number of units sold could fall by almost 50% compared to the figure reported in 2019.

If businessmen's forecasts are true, the negative trend of recent years would continue, since during 2019 47,866 units were registered in the country, 6% less than in the previous year.

Auto Credit Up 17%

April 2013

Analysis has been conducted on the composition of the loan portfolio to buy vehicles, one of the fastest growing sectors in recent years.

In the past five years, auto financing in Panama has been increasing, in February Panamanian banks provided loans of this type worth $813 million.

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