2009 turnover of used cars in Ukraine nearly twice as high as on new car market

Sales of used passenger cars in Ukraine in 2009 reached 300,000 units, which is almost twice as high as sales of new cars (160,000), and the fall on the used car market year-over-year (by 25%) was much less than on the new car market (by 74%), reads a press release of the Choice Ukraine Company.

«Monthly size of deals on resale of cars inside the country varied within the range of 20,000-30,000, while 11,000-12,000 vehicles were sold on the new car market,» reads the release, citing the company’s director Maksym Rasner.

Choice Ukraine said that the new car market in Ukraine in 2009 showed a persistent fall, and Ukraine fell from the seventh to the fourteenth position in Europe in terms of registration of new cars, according to the АСЕА’s data over the first 11 months of 2009 against the year-over-year period.

The experts explain the relatively better performance of the used car market by the fact that the segment less depends on crediting, and did not greatly suffer as greatly from the banking crisis.

In addition, due to a fall in public incomes, cheap cars were more popular in 2009. Hyundai, Chevrolet, Dacia, Daewoo, Kia, Geely, Skoda, Chery, ZAZ, GAZ and VAZ cars were the leaders on the new car market. Used VAZ’s share was 30% of all sales, while Daewoo was second and Volkswagen were third.

The press release says that the demand on the used car market was partially stimulated by policies of car dealers, which focused on services of resale of cars and services during the crisis.

Taras Kovalenko, the head of the association of used car dealers, the used car market in the next several years will grow rapidly.

«The ratcheting-up of demand is prompted by the fact that the used car market, slowly but surely, is emerging from the shadow economy and is turning into a civilized market. More and more dealers sell used cars, and today consumers can avoid risks linked to the purchase of used cars on unregulated markets,» reads the release, citing Kovalenko.

He said that a law to legalize trade-ins with used cars will further promote the development of the used car segment. The law could be adopted in early 2010.

«Over the next three years, the used car market will grow seven-fold,» Kovalenko asserted.

Rasner said that one of the key trends of the crisis is obsolescence of vehicles and a fall in the number of cars with factory warranties.

«In 2010, Ukraine will have less than 1,000 cars with factory warranties, and demand on after-warranty services will grow. Many dealers understand this today,» he said.

The Choice Ukraine Company exclusively provides car damage insurance and prolonged warranties in Ukraine.

Источник: Kyiv Post

 
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