Nearly 600 credits a day are made to buy a car

More and more cars are sold in Portugal. And the credit was a fuel. Auto loans do not stop accelerating. Only in May, nearly 290 million euros were granted and more than 20,000 contracts were concluded, according to figures released Monday by the Bank of Portugal.

From the beginning of the year until the end of May, the number of new financing granted to buy the car has increased to more than 89 thousand. It's a rate of nearly 600 a day. More than 1.26 billion euros were lent during this period, more than three times more than five years ago. The rise in credit has helped car sales by 2017.

In the first five months of the year, more than 108,000 light vehicles were sold, according to ACAP – Automobile Association of Portugal. It was the best year for more than a decade. The vast majority of car purchases are made on credit. On average, this year, more than 14,000 euros are lent in each car loan agreement

. The trend of credit growth was already visible in recent months. But in May the financial institutions put the turbo. The amount granted and the number of loans reached record highs.

Financial institutions lend nearly 670 million euros to personal loans, auto loans, credit cards, lines of credit and overdrafts. It is the highest since at least the beginning of 2013 and represents an increase of more than 90 million compared to the same period last year.

Banco de Portugal, led by Carlos Costa, explained in the latest report on financial stability, the increase in consumer credit with the "context of improving labor market conditions, the confidence consumers at historically high levels and continued growth in private consumption. And it was noted that the share of credit consumption has increased.

The ceilings on consumer loans were raised shortly before the entry into force of the Bank of Portugal's loan recommendations. These rules began to take effect this month and provide, among other things, that lending, consumption and housing expenditures do not exceed half of household income.

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