Dominican Republic’s 8.95% car loan rate the lowest ever
Santo Domingo. – The Dominican Republic’s Central Bank decision to trim the banks’ reserve requirement disclosed Tuesday has prompted at least one major auto dealer to announce an interest rate of 8.95% for car loans, lowest ever.
The announcement by the company Hboutique offering the rate on at least two new SUV models for six years could unleash a fierce price war in among dealers, known for charging exorbitant amounts for new cars.
Hboutique, which represents Hyundai, began offering Santa Fe and Tucson at a fixed 8.95% and up to six years to pay with free, full coverage insurance, says an ad published by eldia.com.do.
Since vehicle financing forms part of personal consumer loans, as much as RD$1.3 billion are available within the RD$20.0 billion released by the Central Bank.
Just yesterday, Enrique Fernandez, president of the major dealers grouped in Acofave, said the fixed rate sets a record for auto financing and even goes below the Central Bank’s benchmark of 9% for those transactions.
Category: DR News |