Experts Forecast Price Drop in First Car Market in Baku

Business Materials 23 April 2008 12:58 (UTC +04:00)

Azerbaijan, Baku, 22 April / Trend , corr.U. Ismayilova/ The prices of cars with new bundling are expected to drop in the first car market of Azerbaijan in 2008, the Participants of Estate Market Public Union said.

"The cars, worth AZN21,000, are in high demand in the first market of Baku," organization said.

According to results of monitoring by the organization, in March there has been a growth of 9-14% in the first car market as compared to February. Though experts attribute it to intense activity of the market to the indicators connected with season, there are other reasons as well.

According to experts of the organization, the key reason of intense activity in first car market is the simplification of terms for car credit as compared to 2007.

At present there are 15 companies selling cars without initial payment or with 10-15% interest rates annually, while there were only 3 such companies in 2007. Now, those who want to purchase a car do not go to bank for a credit, but negotiate directly with a company to pay 18-19% interest rate annually with a period of 60 months.

The experts of organization also believe that intense competition in the first car market enables to forecast further simplification of credit terms for additional 2 to 3%.

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