People borrow an average of 22% more money to buy a used car during the Covid-19 pandemic, according to Bigbank Latvija data.
According to Bigbank Latvija data on car loans, in the period from 1 July 2019 to 31 March 2020, customers borrowed an average of 4,762.1 euros for the purchase of one used car. In turn, since April 1 last year, the average amount of the transaction has grown to 6,110.4 euros, which is an impressive jump of 1,348 euros.
The distribution of loans in different price groups has changed significantly. Before the pandemic, the most in demand were car loans in the amount of 2000-3000, which accounted for 18% of all borrowers, and in the amount of 3000-4000 euros. 16% of customers borrowed such amounts.
However, since the beginning of the Covid-19 pandemic, the largest share of loans is in the group of 5000-6000 euros. This amount of money is borrowed by 18% of car borrowers.
The demand for even larger loans has also increased significantly, according to Bigbank Latvija. For example, between 10,000 and 11,000 euros are bought to buy a car about twice as many as before the pandemic, or 6% of all. In turn, only 5% have settled the loan up to 2000 euros, while in the past this was one of the most requested amounts, chosen by 14% of customers.
Bigbank is an Estonian bank specializing in the provision of consumer credit and loans to legal entities, as well as the provision of term deposit services. The company has expanded its operations outside Estonia, establishing branches in Finland, Sweden, Latvia, Lithuania, Bulgaria, as well as offering cross-border services in Austria, Germany and the Netherlands.
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