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Sunday 23.09.2018 | Name days: Vanda, Veneranda, Venija

Expert: used car market reports biggest interest in cars worth 2 000 – 5 000 euro

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 Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Ugis Vitols

Ugis Vitols

Nearly 80% of Latvia’s residents considering buying a used car are prepared to spend up to 3 000 lats on this purchase.

Moreover, 40% of the respondents plan buying the next family car abroad, according to the survey data by the goods and service price comparison website

Commenting on the survey results, the Used Car Traders’ Association president Uģis Vitols indicates the used car market is one of the key indicators of the Latvian economic situation and this survey’s results reflect the current market reality – people thoroughly mull over purchases and choose their car carefully.

81% of the surveyed intend to buy a car with market value not exceeding 3 000 lats. Notably, almost half or 46% of the respondents are ready to allocate up to 1 000 last for car purchase, 35% – from 1 000 to 3 000 lats, while 13% – from 3 000 to 6 000 lats. Only 3% of the respondents claim they can afford to buy a car worth over 6 000 lats.

Vītols confirms that presently most transactions in the used car market are concluded on cars with value ranging from 2 000 to 5 000 euro. They are selected by people who do not want to or do not have the opportunity to use leasing companies’ services. Interestingly, this price segment remained popular even during the rapid growth years, the expert points out.

The second most popular is the car segment worth from 10 000 to 15 000 euro. Recently, demand for such cars is starting to grow rapidly. At the same time, in the economic crisis years we have lost middle-class buyers preferring cars worth from 8 000 to 10 000 euro, asserts the used car market expert.

38% of the population expect to buy a car abroad, 24% will search for a vehicle via advertisements, 17% hope to find used car dealers’ offers, 14% – at local car sites, whereas 7% will rely on friends and acquaintances’ advice  in car selection.

These figures once again prove the general truth – personal savings are usually granted for used car purchase. Moreover, people try to save money by seeking the most favourable car deals abroad – mostly in Germany, Lithuania and Estonia. Once the local leasing companies renew car leasing offers, I believe the majority of Latvia’s residents will buy cars in Latvia, because it is safer. When purchasing cars in foreign countries there is a high risk to buy low-quality vehicle or car with hidden defects, Vītols explains.

In his view, used car market is currently experiencing leasing companies and banks’ activity increase – car purchase financing offers are gradually being restored. However, the activity is still very weak. We have to recognize that the public car park is very outdated and the situation will not become better in the near future. Last year, the used car sales dropped by 60%. I do not wish to forecast this year’s performance because many negative factors can affect the used car market: interest rate and fuel price surge, employable residents’ emigration, as well as the local banks’ policy, as the car purchase loans are issued with great caution.

It is obvious that the economic crisis is continuing in Latvia; therefore, people will keep saving money by choosing the cheapest possible cars, Vītols says.

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  1. Wer says:

    still many also have enough money to buy new cars

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