Lowered Interest Rates,
Fast Approval Reasons
For Increase In Vehicles
Sales and Imports
It appears that the high
cost of gasoline is not
shying away Costa Ricans
from the dream of owing
a car, as evidenced by
records of the Registro
Nacional (national
registry) which, on
average, registers 755
vehicles a day, placing
the total number of
vehicles registered in
the country to 830.000,
an increase of 10%
annually.
Records indicate that in
2007 82.000 new and used
vehicles were imported,
almost double the amount
imported in 2005, when
the number of imports
reached 45.000 units. In
2006, 59.000 vehicles
were imported.
The number of vehicle
imports are from records
maintained by the
Dirección General de
Aduanas, del Ministerio
de Hacienda, which
includes all classes of
vehicles: passenger,
commercial, buses and
minivans.
The total number of
vehicles in the country
is from records
maintained by the
Instituto Nacional de
Seguros (INS), which has
the responsibility of
collecting the annual "marchamo"
or circulation permit on
all vehicles registered.
The INS reports a total
of 830.000 vehicles,
compared to 705.000 in
2005.
The numbers related to
the population means
that one out of every
four Costa Ricans has a
vehicle.
Import of scooters and
motorcycles has
increased, going from
17.000 units in 2006 to
37.000 units imported
last year.
One of the reasons for
the increase in imports
and number of vehicles
is due to low interest
rates for vehicle
financing and the ease
of financing offered by
the country's financial
institutions. The
average financing rate
fell from 22.9% at the
beginning of 2005 to
14.76% at the end of
2007 at the state banks.
In addition, private
banks have been more
aggressive in providing
car loans, providing
easier financing and
dropping rates from
24.38% to 17.24%.
Scotiabank, the largest
of the private banks,
says that 25% of all
consumer loans in the
last six months have
been for vehicle
purchases, up from 18%
the six months prior.
Both private and state
banks now offer many car
loans without a
co-signer and low down
payments. In addition,
some institutions have
financial plans where
payments start a year
later, depending on the
credit history of the
borrower and in many
cases the credit
approval is within 24
hours or less. |
