Brazilian consumers who managed to keep jobs and revenues during the toughest period of the crisis have returned to buy cars in recent months, reflecting a certain recovery of confidence after signs of economic recovery.
This is the explanation of the executives of the credit area to the vehicles of the big Brazilian banks for the growth of the financing of the segment, which helps to increase the sales in the year. Butchers denounce optimism with the result of 2018 even after the truckers stopped, the World Cup and the elections.
According to Central Bank data, the vehicle portfolio grew 12% in September compared to the same month in 2017. The data also appears in the results of the banks in the third quarter. According to Leandro Diniz, director of the finance and finance department of Bradesco, the combination of the interest rate, the aging fleet and the beginning of a positive confidence curve led the market to demand.
"The only one with credit is the same [consumidor] which I already had, but now people are more willing to change cars, "adds Rodnei Bernardino de Souza, director of Itaú. Those who have vehicles often change it every two or three years and they are those people who start to return to the market.
"We are still growing at moderate rates, we still have a little time to get to the number there, there is a repressed demand, people who delayed the purchase and changed the car to enter the cycle of confidence," says André Novaes, director of Santander Financing .
He says the forecast for the year is to reach 3 million vehicles produced, still below the 3.7 million reached in 2013, the market record. It allows customers to attract a fall in the basic interest rate, which has gone from 14.25% per annum to the current low of 6.50%. With strong competition in these lines, banks tend to go through the lowest cost for the consumer.
This month, for example, banks sign loans with minimum rates of 0.89% (excluding IOF and other costs, such as insurance that is usually incorporated into longer loans and increases the final loan). The average monthly rate measured by the Central Bank is 1.7%, the lowest of the financial system for the individual, along with the payroll of civil servants. The fees are low, they say, because when the customer pays an entry, he is less willing to stop paying the deadlines. In addition, the car is the guarantee in case of non-compliance.
This does not mean that banks will set aside the criteria for granting new financing. "Banks back there learned more to give this credit and they did the lesson at home. Banks are not making crazy credit," says Novaes de Santander.
For Bradesco, there is a large area of growth in the face of a change in appetite for risk.
"The bank previously approved about 6 million customers to buy vehicles and pre-analyzed another 10 million," says Diniz. It is in this space that car manufacturers are betting to grow again. "To make money, the bank needs to lend to someone," says Roberto Akiyama, vice president of commercial automobiles of Honda Automóviles, after restarting the interest of banks to finance the sale of automobiles.
"We announce financing with incentive rates and good and strong banks. We are gradually improving the credit approval rate," says Marcio Alfonso, president of Caoa Chery. Ford expects to see a 10% increase in its sales in 2019, after industry forecasts, says Natan Vieira, vice president of marketing, sales and services in South America of Ford. "We worked with Bradesco and we are obtaining a relatively high approval, there is a tendency for improvement in previous years," he says.
"Unemployment remains strong, that's a problem, but this change in the industry is a good rest for us. Retail trade comes with a slightly slower pace, but it reacted," says Vieira. Roberto Bottura, president of Check Price (a company specialized in vehicle prices) has a more cautious reading for next year. For him, there will be no significant growth in the supply of credit in the market, since the sales must not have very high increases.
"There can be an improvement, but the new automobile market is still unlikely to grow next year. Banks are hungry but are still scared because they suffered losses in 2015 and 2016 in the financing area, but they want to grow healthy," says Bottura.