Fury road: the Lebanese chapter

By all forecasts and estimates, 2015 was slated to have been a disastrous year for the automotive sector. Not just because of regional instability and sluggish economic growth, but more so the mandated increase in down payments. Dealerships had been offering up to 100 percent financing on new cars, which had helped to keep annual vehicles sales at over 30,000 units, particularly in the compact and cheaper segments. Concerned that private debt was a potential bubble that could burst, Banque du Liban (BDL), Lebanon’s central bank, issued a circular in October 2014, requiring a minimum 25 percent down payment on vehicle and real estate purchases. Dealers were up in arms about the decision, saying it would cause car sales to slide amidst a difficult economic environment, with some – including the Automobile Importers Association (AIA) – forecasting a drop of up to 30 percent.  But instead of a plunge in