Baku, September 30, 2025
For many Azerbaijanis, a car is more than just transportation – it signals comfort and social standing. But turning that aspiration into reality with a bank loan often comes at a steep cost.
Transport expert Radji Gulamirov says there are three obstacles every buyer should consider before signing a loan agreement.
First, interest rates are punishing
“A 20,000–25,000 manat car can end up costing 35,000–40,000 manats once the loan is paid off over four to five years,” he told Milli.az.
Second, the down payment is heavy
Banks usually require buyers to put down 30–50 percent upfront. For a 25,000-manat car, that means finding 7,000–12,000 manats in cash before the keys are even handed over.
Third, loans rarely apply to used cars
Most financing is tied to new vehicles from showrooms. Buyers who want second-hand models often find credit options limited or nonexistent, forcing them to pay in cash.
Despite those barriers, the used car market remains vibrant. Budget-conscious buyers favor Hyundai Accent and Kia Cerato, while wealthier customers lean toward Toyota Prado, Lexus RX, and Mercedes-Benz E- and C-Class. Chinese automakers – including Chery, Haval, Geely, and newer entrants Changan and BYD – are also carving out space.
Gulamirov predicts Chinese brands will only grow stronger in the second-hand market in the years ahead.
