Santander reduces interest rates for hybrid and electric cars – 06/26/2023 – Eduardo Sodré

Banco Santander joins the Alliance for Sustainable Mobility, a program developed by the company 99 to encourage the use of hybrid and electric cars. With the initiative, the bank will change its credit granting strategy.

As of this week, the interest on installment payments for these less polluting cars will be reduced by 15% when compared to the interest charged on combustion-only models.

At the request of the column, Santander made some simulations with the before and after the change in rates.

In the case of purchasing a Toyota Corolla Cross XRX Hybrid (BRL 207,790) with a down payment of BRL 110 thousand and with 36 months of financing, each installment will cost BRL 3,441.21 – which corresponds to a monthly fee of 1. 34%.

Before the discount, the installment of the sport utility vehicle produced in Sorocaba (inland São Paulo) would be R$ 3,572.26, with a rate of 1.56% per month.

When considering the same down payment to finance a 100% electric Volvo XC40 (R$329,950), the 36 installments will come to R$7,766.54, with monthly interest of 1.36%. Before the reduction, the installment would cost R$ 8,129.86, at a rate of 1.63%.

When considering the same entry (R$ 110,000) to finance a 100% electric Volvo XC40 (R$ 329,950), the 36 installments will be R$ 7,766.54, with monthly interest of 1.36%. With the previous rate of 1.63%, the installment would be R$ 8,129.86.

The differences in tariffs are due to the proportional value of the input, which is lower in the case of the electric model of Swedish origin.

Despite the reduction, the values ​​are still high when compared to what was on the market before the Selic hikes.

On Wednesday (21), the Copom (Monetary Policy Committee) maintained the basic interest rate at 13.75% per annum and did not signal a cut for its next meeting, which will take place in August.

The reflection of this positioning is manifested in sales. In November last year, cash sales reached the highest share in history: 64% of light vehicles sold were paid for at once. Installments accounted for 36% of the registrations.

There are, however, moves by banks that operate in the automotive sector to expand their portfolio through their own strategies.

“The Selic marks the interest to be charged from the customer, but it is not the only component of the final rate. Indications and trends of a drop in the rate help a lot, as they tend to reduce the installments for the consumer, expanding the opportunities for granting credit” , says Cezar Janikian, director of Santander Financiamentos.

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