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Car market moving uphill: more expensive vehicles are being sold again
🇪🇪 Estonia /Economy & Trade

Car market moving uphill: more expensive vehicles are being sold again

From Postimees · () Estonian

Translated from Estonian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • SEB Liising saw a 65% increase in contracts with private clients in the first four months compared to the first year of the car tax.
  • The average price of new cars financed by SEB was nearly 28,100 euros, an 8% increase from the previous year.
  • Despite the initial shock of the motor vehicle tax, private customers show growing interest, with a particular demand for hybrid cars and a slight increase in used electric vehicles.

The Estonian car market is showing signs of recovery, with SEB Liising reporting a significant 65% rise in contracts with private clients during the first four months of the year, compared to the initial period after the car tax was introduced. The average price of new cars financed through SEB has also climbed by 8% to nearly 28,100 euros in the same period.

SEB Liising signed 65 percent more contracts with private clients in the first four months than in the first year of the car tax. The average price of new cars financed by SEB was nearly 28,100 euros in the first four months of the year, which was 8 percent higher than in the same period last year.

— Rein KarofeldRein Karofeld, head of SEB Liising, described the growth in new car sales and financing.

Rein Karofeld, head of SEB Liising, noted that while the motor vehicle tax initially hit the market hard, private customers are now demonstrating increased purchasing interest. The demand for cars priced over 100,000 euros has also risen, with several such vehicles sold in the first four months of this year, compared to only three in the same period last year. The most expensive car purchased exceeded a quarter of a million euros.

Karofeld highlighted that interest in hybrid cars remains strong as consumers seek to reduce their reliance on fluctuating fossil fuel prices. However, a breakthrough in fully electric vehicle sales has yet to occur, although there is a noticeable increase in interest for used electric cars.

More cars costing over 100,000 euros have been bought with SEB leasing than last year – in the first four months of this year, there were a handful, while at the same time last year there were three. The price of the most expensive car was just over a quarter of a million euros.

— Rein KarofeldRein Karofeld, head of SEB Liising, detailed the sales of high-value vehicles.

Looking ahead, Karofeld anticipates a stronger sales performance in the summer, with potentially higher-priced vehicles entering the market. He recalled that the average price of new cars was 27,400 euros in the year preceding the car tax implementation, suggesting a continued upward trend in vehicle prices.

The market is moving uphill. In the summer period, we could see significantly stronger sales than last year, and also more expensive cars.

— Rein KarofeldRein Karofeld, head of SEB Liising, expressed optimism about future sales.
DistantNews Editorial

Originally published by Postimees in Estonian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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