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Trends and Credit Decisions in the Polish Used Car Market in 2024

AUTOMOTIVETrends and Credit Decisions in the Polish Used Car Market in 2024

The analysis of market conditions and consumer sentiment since the beginning of 2024 aligns with the optimistic forecasts of experts. A revival in the automotive sector is evident in both supply and demand. The improved financial situation of Poles is boosting consumer sentiment. According to the National Bank of Poland (NBP), household savings in Poland have seen a significant increase, with deposits in February being almost 11% higher compared to the same period last year. Meanwhile, the overall level of household debt remains unchanged. However, when looking at the specifics of debts incurred for car purchases, there are changes in the size of loans – the values at the beginning of the year are higher than those at the end of 2023.

Nearly one-third of borrowers, who finance the purchase of used cars, opt for an 8-year loan, according to OTOMOTO Pay data. Most commonly, 24% of borrowers have monthly obligations ranging from 500 to 700 PLN.

The average age of cars in Poland is now over 14 years, but there is a difference in the choices of Poles who use credit for their purchases versus those who buy with cash. Vehicles purchased with additional financing are noticeably younger – the average age of a car bought on credit is just under 10 years. The increasingly popular idea of using credit to finance car purchases suggests that Poles will choose younger cars in the coming years. Over time, this will lower the average age of cars in Poland to below 10 years, aligning us with the European average, says Arkadiusz Zaremba, Managing Director of OTOMOTO Pay.

Three-quarters of car loans are taken out by men

Men take out the vast majority of car loans. They also incur higher financial obligations – in the first quarter of this year, men opted to finance car purchases with loans averaging 2,600 PLN higher than those chosen by women.

Men over the age of 50 opt for the highest loans

The average value of car purchase obligations in the first quarter of this year was 41,146 PLN, surpassing the values from the last three months of 2023 by 7%. Men aged between 50 and 59 decided on significantly stronger support than the average for all borrowers, with an average loan amount exceeding 45,500 PLN. The lowest loans for car purchases characterize the youngest drivers, which relates both to their lower credit capacity and the price of their first, personally owned vehicles.

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