Saturday, April 19, 2008
Despite being by far the largest economy in Latin America and one of the ten largest economies in the world, Brazil is a country where poverty is everywhere and car ownership is often not the people’s top priority.
However, recent figures on car sales in the country suggest that the wealth is finally reaching the people as luxuries such as owning a new car become a reality.
While car sales are at an all time low in the United States, the car business in Brazil is booming. The sales of autos are rising at an impressive rate, rising by 28% last year and growing by an even bigger 31% so far this year.
The thriving economy has made credit more widely available than ever before, enabling the middle classes of Brazil to own cars that would have previously been fat out of their price range.
Rafael Hanzava, a bank employee from Sao Paulo, has purchased two cars on credit in the past months, attracted by the five and six year loan deals available to him.
The growing stability of the economy and responsible governing have contributed to lenders offering larger and longer term loans as fears of an economic collapse are put to rest.
Although government officials are increasingly worried about congestion and some are concerned by the availability of easy credit, the rise in car loans and car sales looks set to continue into the coming years.
With the American and British markets slowing down, many car manufacturers see Brazil as a golden opportunity and are investing heavily in the country, with companies such as Ford planning a $1 billion investment in its Brazilian divisions.
Source: http://www.onlyfinance.com/Loans-News/
