New car sales have surged this year, and in November sales were more than a quarter higher than a year ago. At the same time, car buyers are trying to avoid leasing, as interest rates have risen sharply and most used cars are purchased without leasing.
This year, car sales have overcome several years of decline due to various crises, said Margus Nõmmik, member of the management board of Amserv.
“Maybe at the beginning we were a little worried about the possible increase in VAT, which would also have caused a sort of shopping boom, but we can’t say that we can see it now. But this is the first year of recovery for us after the short crisis years. You can say that now is the year of production and the supply problems are over and for the first time we could feel a little freer,” Nõmmik said.
This year the sale of new cars increased by 9%, while in November the increase was as much as 28% compared to a year ago. At the same time, in an environment of high interest rates, less and less leasing is being taken up.
“In 11 months, in Estonia, new car leases were granted to individuals and companies, measured in euros, around 3% less and, numerically, almost 9% less than a year ago,” he said Taavi Raudsaar, economist at Eesti Pank. .
75% of new cars are purchased, while 45% of used cars are leased. Leasing statistics also show that increasingly higher prices are being paid for cars.
Overall, the number of new leases did not increase over the entire last year, but the auto market rebounded in November. The situation has calmed down and brought the used car market back to normal, Nõmmik said.
“This year the average rental of a car is 5-6% higher than a year ago. This reflects the fact that cars have become a little more expensive. Especially new cars,” Raudsaar said.
“It’s true that after the end of the pandemic and the start of the war car prices actually increased quite a lot, the prices of new cars. But I think now the peak has been reached, now the situation could stabilize,” Nõmmik said.
As the Euribor increase also increased rents this year, car dealers were forced to reduce profit margins. “Of course, this interest is very painful and a hot word, and people’s expenses have increased significantly,” Nõmmik said.
“It is clear that this interest rate is the same for everyone, and if you want to fix it somewhere and offer it at a lower price, then of course you have to use your own funds,” Nõmmik said.
Car sales will increase in the second half of next year, because at least companies are trying to buy new vehicles before the car tax, Nõmmik said.
2023-12-27 19:31:00
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