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Attention is also drawn to the growing interest of the population for more environmentally friendly vehicles. According to a public opinion poll initiated by the bank, the importance of respect for the environment has grown more in the last two years.
Income and affordability grew
“The impact of the pandemic on the country’s economy and public finances was much milder than we feared at the beginning of the year. The condition of many sectors of the Lithuanian economy improved in the third quarter, the situation in the labor market and people’s incomes stabilized.The median salary in the country was more than 8 percent higher than a year ago, so the value of an affordable rental car also increased during the year.
Last year the average Lithuanian rental car exceeded the value of an affordable Latvian car, this year the gap continued to grow. Although the affordability indicator in Lithuania still lags behind Estonia and is about a quarter lower, compared to last year, this difference has also decreased slightly, “says Tadas Povilauskas, economist at SEB Bank.
SEB Bank Economist Tadas Povilauskas
Since 2016, the price of an affordable car for families of one or two people in Lithuania has increased by 44 percent. This is partly reflected in the bank’s statistics: the average value of a lease for private customers of new cars has grown by 17% in the last five years. up to 28 thousand. euros. The average value of rented used cars increased 34%. up to about 17 thousand. euros.
The most popular cars to buy
Saulius Mickus, Head of the Leasing Department at SEB Bank, says that the five best-selling cars were selected on the basis of data from the first half of this year, but according to him, the names and brands do not differ much from previous periods.
“When it comes to new cars, which are the ones Lithuanian residents like the most, we see practical options. Residents choose very rationally, middle-class cars, those that are really good, neat, good manufacturers, they have a great driving and have a good reputation.
The Toyota RAV4 and Corolla, CH-R have a strong presence here. “Škoda, which is very popular and loved by all Lithuanians, especially young people, is not inferior to the Volkswagen Golf either,” says S. Mickus.
Photo by Rokas Lukoševičius / 15min / Saulius Mickus
Therefore, Lithuania’s top five favorite new cars look like this:
- “Toyota RAV4”,
- “Toyota Corolla”,
- Škoda Octavia
- Toyota C-HR
- “Volkswagen Golf”.
15min / Photo by Dainius Cubera / Volkswagen Golf updated
No less interesting is the type of used cars that compatriots like. According to S.Mickus, the trends here remain similar to those of previous years.
“When it comes to used cars, we see a slightly different picture. The first difference, which is obviously notable, is that all of these cars, or at least most of them, are of a higher class. There is also the Volkswagen Passat, the BMW 3rd and 5th class, the Audi A6 and again the same Volkswagen Golf.
Here is an old truth that when buying a used car, Lithuanians also rely on emotions and want to have a higher class car: more attractive, better equipped, not necessarily so new or eco-friendly, but the opinion of others is still just as important for Lithuania, ”says S. Mickus.
Buy cheaper cars
According to him, it has not changed since 2016. There is a trend: Lithuanian residents are more likely to buy new cars than used. However, it is also notable that Lithuanians still tend to choose cheaper cars than they could buy, for example, with a lease.
According to the survey, the majority (61%) of Lithuanians who intend to buy a car intend to spend up to 10 thousand. euros. Up to 73 percent. of these respondents plan to buy a vehicle older than 3 years. S. Mickus notes that by allocating the amount provided for the purchase to the down payment on the lease, residents could purchase a new car, often safer, more comfortable and more affordable.
“Although the country’s car rental market has contracted a bit in the first half of this year due to the impact of the pandemic, looking at the data for the last decade, we see that the market has been falling since 2010. It grew steadily. As the economy grows and incomes increase, people increasingly appreciate the opportunity to use leasing to buy a newer car, but we find that the car rental market still has a lot of room to expand, “says S Mickus.
What motivates you to change cars?
According to SEB Bank, the age of a vehicle (42%), the economy (28%) and frequent breakdowns (28%) mainly encourage residents to change cars.
The most important criterion when choosing a car is still the price – 77 percent. The population cites it as very important, as well as low operating costs (69%) and fuel consumption (67%). However, compared to 2018, the importance of respect for the environment has increased significantly: 40%. Respondents consider the car’s environmental friendliness to be a very important criterion, and the population has increased by 10 percentage points.
Analyzing the data of the best-selling new and used cars in Lithuania and taking into account the car affordability index, SEB analysts compiled a list of the most popular rental cars:
Affordable cars for one person:
- “Škoda Octavia” (2018 m.)
- “Toyota C-HR” (2017 m.)
- “Toyota Corolla” (2018 m.)
- “Toyota RAV4” (2015)
- “VW Golf” (2018 m.)
Affordable Family Cars (New and Old Models):
- “Škoda Octavia”
- Toyota C-HR
- “Toyota Corolla”
- “Toyota RAV4”
- “VW Golf”
By order of the SEB bank in 2020 in September. Norstat conducted a survey of Lithuanian residents (18 to 64 years of age). A total of 1,000 residents were surveyed, of which 630 indicated that they or their family members were planning to buy a car.
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