Interview for Banker.ua
What if buying a car today did not require using your own money, while not overpaying? Automotive loans are increasingly being chosen not only by those who lack sufficient funds, but also by people who prefer to keep their money for other needs or buy a higher-class vehicle.
Oleksandr Kurkin, Member of the Management Board of Credit Agricole Bank, Director of Proximity Banking and Network Development, explains how automotive loan terms are changing, why banks are increasingly focusing on cars with mileage and electric vehicles, and what could become the next growth driver for the market.
Car Loan Terms and Customer Choice
Over the past year, Ukraine’s automotive market has changed noticeably: buyers have become more attentive to the cost of a car and financing terms. How have these changes affected the behavior of Credit Agricole customers?
Overall, I do not see any significant changes in the behavior of customers buying cars on credit. And I do not think we are likely to see major changes, because if you look closely at the financing programs Credit Agricole has developed together with its partners, the overpayment for the customers is almost negligible.
Together with all our partners — the importer, dealer and insurance company — we have managed to create a product that allows customers to buy a car with almost no overpayment.
In 2025–2026, you significantly increased your automotive lending volumes. What works best today when it comes to attracting customers: favorable loan terms, partnership offers with dealers, or the speed and convenience of the application process?
It is a combination of all these factors, because the terms are truly favorable. If I were buying a new car today, I would not understand why I should pay cash when I could use financing instead. There are programs with almost no overpayment, including zero-interest offers for terms of up to two or three years. Why spend your own money, even if you have it, when you can use a financing program and receive funding from the bank?
Such conditions attract customers and create opportunities for those who do not have enough of their own funds. For example, a person may have enough money for a car in a certain segment, but thanks to favorable financing terms, they can choose a higher-class vehicle that would otherwise be beyond their current budget. In my opinion, this is an excellent opportunity to buy a better car than you could afford using only your own funds.
At the same time, buying a car remains largely an emotional decision. It is important for the customer to visit a dealership, sit in the car, touch the steering wheel, assess the interior and see what the car looks like from inside. You need to get behind the wheel and feel how comfortable you are in the car. That is when emotions come into play and the final purchase decision is made. This is why the service provided by our dealer partners is so important. They are the first to meet the customer, communicate with them, and help them make a choice.
For now, people mostly still visit dealerships rather than search for cars and loans online. By comparison, when someone buys a kettle, they usually search for information online, compare models and can place an order immediately. Cars are still different, although the market is gradually moving in that direction. I believe that soon people will buy cars online without visiting dealerships. But for now, the emotional component of the purchase remains important.
A lot therefore depends on how the dealer communicates with the customer, helps them choose a car and explains the joint financing program. It is important to explain why the offer is attractive and beneficial for the buyer.
Our partners do this work very well. As a result, the share of credit products in overall car sales is growing.
To what extent do financing terms determine the choice of a car today?
Financing terms definitely influence the choice of a car, and it all depends on the individual customer. For example, a person may have the money, but thanks to favorable financing conditions, they can keep it for other projects and buy the car on credit.
Another situation is when someone has enough of their own funds for a certain class of car, but not for a higher-class model. A loan makes it possible to choose a better vehicle. This applies to both new and used cars, and on the secondary market the difference between the options can be particularly noticeable.
For example, instead of a ten-year-old car with 100,000 kilometers of mileage, you can buy a five-year-old or even a three-year-old car with 20,000 kilometers. Although, of course, there is no guarantee that a newer car will necessarily be cheaper to maintain than an older one.
A loan also helps fulfil a customer’s desire to buy a better car. And for someone who would otherwise be unable to buy a car at all, financing makes that purchase possible.
Used Cars and Digitalization
In 2025, the bank launched cash loans for the purchase of cars with mileage. Why has this segment become important for your car lending strategy, and how is demand for new and cars with mileage changing?
The automotive industry is one of the long-term pillars of Credit Agricole’s development strategy in Ukraine. For many years, the bank has been one of the leaders in automotive financing and has financed a significant share of new car sales. However, the automotive industry is not only about new vehicles. It also includes cooperation with importers, dealers and other market participants, including the car with mileage segment.
If we compare the two, the car with mileage market is dozens of times larger than the new-car market. That is why it is important for us to develop this area as well. We want to meet customers’ needs regardless of what type of car they choose.
We already have strong positions in financing new cars, and now we are strengthening our processes and offers for other segments. Our goal is for a customer to receive an appropriate offer whether they are buying a ten-year-old, five-year-old or brand-new car. We have solutions for each of these types of vehicles, including motorcycles.
«I see no reason to pay for a car upfront if you can use financing instead»
Over 17 years of automotive lending with Credit Agricole, more than 80,000 Ukrainians have bought cars. How have customers’ expectations of car financing changed over this period?
Ukrainians are changing in general, and one of the most significant transformations is digitalization. We like simple processes. In my opinion, this is one of the areas where we are among the strongest in Europe: we want everything to be simple and preferably digital. This is reflected in our expectations across different areas. Whether you are buying coffee at a café or a car, you want the process to be simple and the service to be high quality.
When a customer buys a car, they expect a minimum amount of paperwork and a simple application process. The state is actively moving documents into digital form: passports, tax identification numbers and other data. The infrastructure for storing and exchanging such information is already in place. Customers therefore expect the same level of simplicity from banking services.
At one point, the shift from cash to cards was a major change. Now, it seems to me, most people do not even take out their card anymore, they simply tap their phone against the terminal. It is convenient, and this is exactly the level of convenience customers expect from a bank.
If a bank issues a card that cannot be used via a smartphone, it is unlikely to be very popular. Automotive financing should work in the same way: minimal paperwork, fast and simple processing. And customers also want the service to be free or as inexpensive as possible.
Electric Vehicles and Partnership Ecosystem
Since we are talking about digitalization, it is worth mentioning another automotive market trend — electric vehicles and hybrids, for which the bank already offers special programs. How is electrification of the automotive market changing the bank’s approach to lending products?
Electric vehicles are a global trend that is influencing the automotive market and gradually changing its structure. At the same time, from a lending perspective, an electric vehicle is still a car, so electrification itself does not necessarily require a fundamentally different approach to financing.
However, assessing insurance risks for electric vehicles is somewhat more complicated. If something happens to a conventional car with an internal combustion engine, the approximate repair cost and availability of repair services are usually relatively clear.
With electric vehicles, the situation is different. This is particularly true for officially represented models, as additional risks arise. The battery is one of the key components of an electric vehicle. If it is damaged, the consequences can be much more serious than the failure of an individual component in a conventional engine, which can be repaired or replaced.
At the same time, we are part of the international Credit Agricole Group, which places strong emphasis on social responsibility and ESG, including environmental impact. We aim to encourage the adoption of electric vehicles, which produce no tailpipe emissions while driving, and therefore try to develop special, more attractive offers for their buyers.
Ultimately, the offer for the customer is developed together with our partners. We take into account the challenges, strategies and vision of the companies selling these vehicles.
Credit Agricole works not only with car buyers, but also with manufacturers, importers, dealers, and insurance companies. To what extent does this partnership ecosystem help the bank grow in this market?
It is a key factor. Without partnerships, we would not have achieved the results we have today. Cooperation allows all the participants who jointly shape the customer offer to create a product that is as accessible, simple and high quality as possible. When all partners work according to a win-win-win principle, the customer wins as well: they receive a product designed around their needs. This is the main driver of our growth.
«Ukrainian customers want digital solutions, simple processes, and minimal paperwork»
Margins, Competition, and Growth Prospects
As the market becomes more competitive and customers can quickly switch to a better offer, where is the balance today between a low interest rate, convenient service and genuine savings for the buyer?
Automotive lending is not a high-margin banking product. It is one of the lowest-margin areas of lending, if not the lowest-margin among all banking products.
Of course, price matters to the customer. When buying a car, people generally do not expect significant overpayment and want it to be as low as possible.
At the same time, customers want high-quality service. For example, when buying car insurance, they want to pay as little as possible, but they also expect the insurance company to handle claims responsibly and quickly if something happens to the car.
This creates a certain contradiction: the customer wants everything to be inexpensive, but at the same time high quality. In my opinion, high-quality service cannot be cheap. If we talk about quality and at the same time describe it as cheap, that is probably not quite the right definition. However, costs can of course be optimized.
In the first half of 2026, you already issued UAH 3 billion in automotive loans. What should be the next stage of growth: more partnership programs, further development of car with mileag lending, electric vehicles, or new car financing models?
In the new-car segment, we already depend to a large extent on the size of the market itself. Of course, we can increase the share of financed sales, but we cannot issue loans for more cars than are sold in the market overall. That creates a certain limit.
By contrast, the car with mileage segment still has significant growth potential. The used-car market is dozens of times larger than the new-car market, so we are investing in developing products and processes for customers who prefer used vehicles. If the car is pledged as collateral, the bank receives additional security, which makes it possible to offer the customer more favorable terms.
We see strong prospects for continuing to support Ukraine’s automotive industry. Our role is not only to help customers buy cars, but also to contribute to the growth of the automotive market. The more accessible financing becomes to a wider range of people, the more customers gain the opportunity to purchase a vehicle.
We will continue developing this area. We like being among the leaders in automotive financing, and for Credit Agricole this has already become one of our distinguishing strengths. We intend to maintain these positions going forward.
