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MIDDLE CLASS HALF-MAKERS EXPENSIVE UP TO 2,000 EUROS: Lack of new vehicles increases demand for used four-wheelers

Aroj by Aroj
November 25, 2021
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MIDDLE CLASS HALF-MAKERS EXPENSIVE UP TO 2,000 EUROS: Lack of new vehicles increases demand for used four-wheelers
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A smaller number of used cars are imported to SERBIA, and the middle class of these vehicles has risen in price by an average of 800 to 2,000 euros in the last six months. Experts estimate that the growth of prices of both used and new cars will continue next year, because the same problems remain on the global market.

MIDDLE CLASS HALF-MAKERS EXPENSIVE UP TO 2,000 EUROS: Lack of new vehicles increases demand for used four-wheelers

Photo by Z. Jovanović

Disturbed supply flows, shortages of chips, higher prices of raw materials and transport will continue during 2022. This conditions the lack of both new and used vehicles in the offer, which leads to a jump in their price.

– It seems to us that second-hand cars are literally getting more expensive day by day – says Nebojsa Ivanovic from a well-known car dealership. – Their price has risen abroad and there are not enough used or new vehicles. For the last half of the year, the middle class of used cars, such as “Golf”, “Opel Astra”, “Citroen C4”, “Ford Focus”, depending on the model, is on average higher than 800 to 2,000 euros.

Cheaper registration from next year for cars with an engine capacity above 2,000 cubic meters, aged five to 20, has raised the question in the public whether this measure will encourage the import of older vehicles that are more polluting. Ivanovic points out that many more vehicles are currently being imported into Serbia, which are smaller in cubic capacity than the one for which the relief will apply.

– The biggest brake for the purchase of those cars was the expensive registration – explains Ivanović. – When it becomes cheaper from January, it can be expected that the import of vehicles with larger cubic capacity will increase.

Petar Zivkovic from the Association of Automobile Journalists of Serbia believes that the new registration regime does not represent competition for the import of new vehicles.

– Whoever planned to buy a new car, will buy it, but what should citizens do who do not have the money for that – says Zivkovic. – It is, above all, a relief for the owners who have that car, to keep it and have something to drive. 11-year-olds pay their taxes. It will now have significant savings.

He points out that cheaper registration, as well as another change in the regulations for the tax on the transfer of absolute rights during the sale of used cars among citizens, which simplifies the procedure, will affect better traffic of used vehicles and revive that market. However, as he estimates, there will not be a large increase in demand.

– Registration for vehicles of large cubic capacity will be cheaper the most, but I do not expect that their sales will increase because of that – states Živković. – It should be borne in mind that parts for this type of car are very expensive. It is difficult for someone to decide to buy such a vehicle just because registration is more favorable.

However, he points out that it is necessary to raise the sale of new cars, through various types of subsidies and incentives. Without that, as he emphasizes, it will be difficult to renew the vehicle fleet whose average age is 17 years. Zivkovic estimates that the same trend of rising prices for used cars and new vehicles will continue next year, because the same problems remain.

DUE TO THE INCREASING OF THE OLDER MARKET

For the middle class of “golf”, 10,000 euros should have been set aside earlier, and now it costs 12,000, “Peugeot 308” was 9,950, now it is 10,950 euros – states Nebojsa Ivanovic from a car dealership. – Many buyers give up the planned purchase due to the increase in price and opt for an older vehicle. Others are willing to pay as much as they need to buy the vehicle they want. Some will not wait for months for a new car, so they decide to buy a used one. Everything is individual.

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Tags: CLASSDEMANDeurosEXPENSIVEfourwheelersHALFMAKERSINCREASESLackMIDDLEvehicles
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