OREANDA-NEWS. March 25, 2008. The Bank of Moscow has announced the launch of a programme for refinancing of auto credits (within the framework of the TRADE-IN programme). Within the framework of the given programme, borrowers may exchange their cars bought on credit for new ones.

"Moreover, it is not essential for the credit for the vehicle to have been extended by the Bank of Moscow", the Head of the Autocredit Department Anna Bogovalova explains. "We are prepared to refinance loans granted by other banks." At the same time, this programme can be used by borrowers that have never been late with their payments (by over 5 days) and whose car credit was granted at least a year ago.

"This Bank of Moscow programme makes it possible to use a car pledged to another bank as the deposit on a new vehicle", Anna Bogovalova comments. "In the event of a positive credit decision, the Bank of Moscow provides the borrower with credit funds through redemption of the credit debt to the other banks and, if necessary, an additional payment for the new car."

In the West, TRADE-IN is a widespread practice. "I believe that, for Russian borrowers, this product will prove very much in demand: it is not secret that the average service life of a new car is 2—3 years and not all customers pay off their credit in full during this period", Anna Bogovalova goes on. "Servicing of a new car is cheaper than an older one, especially once the guarantee period expires. In addition, it should be remembered that, over the last 2—3 years, the interest rates on auto credits have dropped by 2—3 percentage points. In a word, both customers and partner car salons have repeatedly expressed the wish for the Bank of Moscow to launch such a programme".