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A paradox during a pandemic
l No more new cars below BGN 20,000, used ones cost by more than 10-15% more
l Almost 30% of auto dealerships for coli second use in us have been broke from the start of the coronary crisis
The coronavirus pandemic caused a record contraction in the market for new and used cars in our country, but also a rise in car prices. For new vehicles, it is mainly due to the environmental requirements of the European Commission, which will come into force on January 1, and for old ones, due to limited imports during the pandemic and the increased interest in second-hand cars, people from Western Europe.
No matter how long you search the websites of official importers, you will not find a new car, even with its most basic equipment, for less than BGN 20,000. Last year, there were at least a dozen proposals for cars of the lowest class in the price range below this amount. If we compare the prices of the cheapest vehicles from 9 years ago and from the beginning of the century, we will see the difference. For example, in 2010 the price of the Dacia “Logan” started from BGN 12,990 with VAT. This year the Romanian mass model
It is done
almost more expensive
Bend
Ten years
The fact is that this Dacia and the second generation have now been updated, and that the base level includes more extras.
The rise in the price of new cars affects all segments and classes, not just small ones. It feels more when generations change. The current version of the Skoda Octavia starts from BGN 32,980 with VAT, while the last generation has a minimum price of BGN 37,960, that is. the difference is 5000 BGN, or more than 15% at the top. With modern crossovers, the number increases even more in parallel with the interest in them.
The prices of used cars in Bulgaria have increased by more than 10-15 percent due to the contraction of the market and difficult imports due to the pandemic. One of the largest used car suppliers, Italy, has already tightened control over the vehicles that have to be scrapped and, as a rule, instead of going to the local car morgues, they moved semi-legally to Bulgaria.
The Spanish and Italian car markets are developing in a strange direction:
they are always bought
plus
cars,
turned 20
This behavior is associated with the economic difficulties and the uncertainty that followed the quarantine measures. Some of the buyers of these cars who have reached the age limit are actually people who have used public transport until now, but now do not consider it safe enough.
In July and August, sales of cars over 20 years old in Spain increased by 31% compared to the same period last year.
Almost 30% of used car dealerships in Bulgaria have gone bankrupt since the start of the pandemic. Due to the crisis, people are putting off buying cars or tend to spend less money.
Cars are still the most wanted
more than 20 years
age and c
price range
up to BGN 5000
The Bulgarian Automobile Importers Association predicts that both prices and the percentage of bankrupt car dealers will increase by the end of the year.
The shocking increase in the price of new cars is due to the pandemic that ruined sales, but above all to the new environmental standards that the auto giants must meet, and they are all struggling. According to the regulations, as of January 1, 2020, 95% of the cars sold in the European market will have to produce a maximum of 95 grams of carbon dioxide per kilometer. And from 2021, this restriction will apply to the remaining 5%. For every car in violation companies
you have to pay
95 euros for
every gram
over the limit
This has forced manufacturers to significantly accelerate the electrification of their model range. Virtually all new gasoline models in Europe with more than 100-120 horsepower are now available at least as mild hybrids with an auxiliary electric start generator and a small battery to reduce harmful emissions.
The fines for those who do not comply with environmental standards are enormous. They can reach a total of 32,000 million euros, 100% more than the income that companies will obtain from the sale of new cars this year. That is why the manufacturers themselves raise the prices of their products, which ultimately affects the distributors and the end customer.
Prices will continue to rise due to the mandatory safety systems and extras that the new cars are equipped with. The EC has already announced that from 2021 11 safety systems and extras will be mandatory in the production of new cars and trucks. Thus, the basic equipment currently available will go down in history. Undoubtedly, the adoption of the new rules will lead to a further increase in the price of cars.
If current prices for assistance systems and extras are maintained, the base price of new cars will skyrocket by at least 3,000 euros by the end of next year, experts estimate.
According to Brussels, the introduction of these extras will save 7,300 lives and prevent 38,900 serious injuries between 2020 and 2030.
Mandatory new car installation assistants for the next 2 years include automatic braking system, reversing camera (or parktronic), driver fatigue detection system, improved seat belts and increased side impact protection .
In addition, the EC plans to install a mandatory alcohol tester in cars, which will check the driver’s condition and if he drank, it will automatically lock the engine.
It is envisaged that the protection system for pedestrians and cyclists in the event of a collision, the function of staying in the lane and speeding warning, as well as special devices for recording accident data will be mandatory, and after each collision You will receive information about how it was converted, that is something like a black box like airplanes.
Autonomous Emergency Braking (AEB) is also expected to be mandatory for new cars.
The system, which automatically applies the car’s brakes if the driver is unresponsive, is believed to reduce crashes by 38%. Rear view cameras have recently become mandatory for new cars sold in the United States and are expected to save 95 lives a year in the United States.
Cars wanted
up to 5 years at the expense of new
Registered
used
the cars are with
37271 less
There have been 37,271 fewer used cars since the beginning of the year compared to the first 8 months of 2019, according to traffic police statistics.
Automobiles, new imports, category M1 are 106,067 and trucks and vans 11,325 until September 1 of this year, or a total of 117,392. At the end of August last year, there were 139,309 newly registered cars and 14,354 trucks, or a total of 154,663. If we take car registrations only, the reduction is 33,242 vehicles, or 31.34 percent.
In light commercial vehicles this year they were registered with 3029 units less, or a decrease of 26.75 percent.
In the days of the coronavirus pandemic, there is a trend for a large decline in new car sales at the expense of those up to 5 years old. Apparently a large chunk of potential new car buyers have opted for those with mileage, but still newer cars.
15,550 new cars of the M1 category were registered with the Traffic Police during the first 8 months of the year, while for the same period last year they were 25,081. The collapse of the new car market is 38%.
In percentage terms, the decrease in sales is greater for light goods in the N1 category: 44.8 percent. This year 3,444 bathrooms were registered, and until September 1 of last year 6232. In total in the first eight months of this year there are 18,994 new cars and trucks, and in 2019 there were 31,313, or there is a decrease of 39.34 percent .
With “almost” new cars up to 5 years old, registrations in the first 8 months of this year are 6,703, while last year they were 7,690, that is. only 987 pieces less. In the case of light commercial vehicles of the N1 category, the decrease is even less. This year 914 toilets under 5 years old were registered, while until September 1 of last year there were 1,086.
14,973 are cars up to 10 years old in the first eight months of this year, while for the same period last year the figure was 19,977. This means that in this category sales decreased by 5004. In trucks the decrease is much greater – a little. As of September 1, 2,111 toilets are already registered, while in 2019 there were 2,661.
Among the most commonly purchased used vehicles (over 10 years old), the total number of newly registered cars and trucks is 92,691 (in M1 class – 84,391 and N1 – 8,300) as of September 1 of this year.
For the same period in 2019, a total of 122,249 used cars manufactured before 2010. Of these, 111,642 were cars and 10,607 were vans were recently registered with the Traffic Police. Thus, the total reduction of “crumbs” so far this year is impressive. 29,558 pieces.
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