Down payment to buy a car increased

Ecuadornews:

The down payment to purchase a vehicle has risen since June 2017 to between 35 and 55 percent, according to private banks, dealers and second-hand stores. This increase is the result of resolution number 358-2017-F, issued by the Monetary and Financial Regulation Board in April of this year, which came into effect at the end of last month.

The regulation establishes that “ordinary consumer loans must maintain at least a warranty equivalent to 150% of the amount of the debt.” This type of consumer credit is given to people looking to finance a non-commercial vehicle.

Prior to the measure, banks assessed the ability to pay to provide a loan in accordance with financial prudence standards. Down payments ranged from 20% to 25%, thus, the 80% or 75% of the cost of a vehicle was financed over the years (I).

Source: http://www.elcomercio.com/actualidad/cuota-entrada-comprar-auto-bancos.html