Incomes of car importers down in Georgia
Baku, Azerbaijan, July 19
By Tamilla Mammadova – Trend:
Alongside with the decreasing demand for cars, Georgia is also experiencing changes in this segment, as people primarily buy small, cheap cars, said Irakli Gurchiani, head of the Toyota Center Tbilisi, Trend reports with reference to bizzone.info.
He pointed out that after the introduction of new regulations by banks, the company's sales decreased by 50 percent. Accordingly, the decline in sales of car dealers is minimally related to the tightening of credit regulations.
“In the last 3-4 years a significant share of sales accounted for installments. On average, the buyer had to pay 1,500 lari a year for the car, and new regulations allow to take such loans only if the income is not less than 3000 lari. Few people in Georgia have such an income, respectively, and banks began to issue less. This situation immediately affected our business", Gurchiani said.
Alexander Dzneladze, head of the Association of Banks of Georgia, has a different opinion.
According to him, in general, the regulation on car loans is quite soft, moreover, the possibility of leasing is envisaged, in which the client’s income does not matter at all, so he temporarily leases a car from the bank and will receive it in property only after the payment of its full value.