Car loans in Iran Grind to a Halt
Apply for a Loan
Secured with SHA-256 Encryption
UPDATED: Oct 23, 2012
Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.
Due to economic sanctions, car loans have become static in Iran, according to the Jerusalem Post.
Iran, having continued its nuclear program for years, faces increased pressure from sanctions imposed by several countries, including the United States.
The country’s automotive industry—along with many other industries—has been hit by these sanctions. In Iran, the automotive industry is considered the second most lucrative industry after oil and gas production. Despite the best efforts of Iran’s government, the Islamic Republic, car prices are rising due to a fluctuating exchange rate between domestic and international currencies. Subsequently, Iranians are finding it more difficult to afford car loans and purchase new automobiles.
Prices for cars have risen by 20 percent, according to Khodro, the country’s largest car manufacturer. Due to these high costs, the lending of car loans has diminished.
This lack of vehicle demand has resulted in some auto plants terminating more than 75 percent of their workforce, a devastating repercussion from economic sanctions.
While sales representatives were informed of price increases, it remains to be seen if they will suffer from massive downsizes.
Beyond a halting of car loan borrowing and automobile sales losses, the sanctions have also impacted the health of many Iranians.
The importing of certain medicines and hospital equipment has ground to a halt. As a result, certain medical items have become scarce and threaten a number of Iranian pharmaceutical factories with bankruptcy and closure.
Iranian hemophiliacs are unable to find many of their medicines. Additionally, sanctions prevent hemophiliacs from using money wiring in order to purchase medicine overseas.
Despite the ongoing weight of sanctions, Iran shows little sign of stopping its nuclear development program, which it claims is for peaceful purposes. Despite the claims of the Iranian government, the U.S., the European Union and Israel all contend that the program is for the development of nuclear weapons which would destabilize and threaten many nations in the region.