Avoid careless leasing and loans
Due to increasing risks for clients buying cars and receiving loans on the one hand, and companies financing leasing and loans on the other, Financial Supervisory Authority (PSzÁF) promotes more effective communication of these risks.
25,000 cars were repossessed from clients who were unable to continue payments in the first 6 months (compared to 40,000 in the whole year in 2006). Risk is highest in the constructions with a duration longer than 8 years, excluding crash damage insurance, and without own capital.
The number of households buying new cars dropped by 15 to 20% compared to 2005, while with used cars the increase was so slight that it could not compensate the effect. This decrease in demand increased competition among leasing companies, which consequently loosened the conditions of contracts and constructions.
Clients need to be careful when calculating total expenses related to a car. They need to add up taxes, maintenance, and insurance. To make the situation easier, PSzÁF is starting an information campaign, concluded general director Csaba Varga. (Gazdasági Rádió)
ADVERTISEMENT
Hungary Cattle Stock Edges Down 2% in a Year
Parliament Negates Mandatory Membership in MOK
Regional Cloud Sales Growth Expected in Coming Years
Meet the Expat CEO of the Year Nominees
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
