Demand for the purchase of new cars has decreased significantly in Ukraine. However, the popularity of used cars is growing. The cost of a used car in Ukraine has changed several times this year. This is due to the introduction of “zero customs clearance” and its subsequent cancellation.
What’s going on in the used car market
Used cars, especially those with preferential import, have significantly reduced the costs of buyers. As a result, a large import of vehicles from Europe and the USA began. The average cost of a car ranged from 2 to 5 thousand US dollars, which was affordable for many of those who wanted to buy a used passenger car.
The rating of used cars in Ukraine today looks like this:
- First of all, it’s German Volkswagen,
- followed by French Renault,
- Czech-German Skoda and
- Ford European version.
In most cases, these are cars with a gasoline engine. However, their number is decreasing from year to year, gradually giving way to hybrids and electric vehicles.
The beginning of the year was marked by a surge in the import of used vehicles. But already in July, the flow decreased significantly due to the cancellation of “zero customs clearance”.
Should I buy a car now?
A used car is needed, first of all, for those who need a vehicle, but do not have the funds to buy a new one or do not see such a need now.
Introduction of “zero customs clearance” the government wanted to saturate the market with vehicles that had retired as a result of hostilities and the departure of a number of citizens to Europe.
After the abolition of preferential import of vehicles, dictated by:
- First, by lobbying car dealers losing profits, and
- secondly, the desire of the government to replenish the budget with lost customs payments,
the cost of a car in Ukraine significantly increased. The increase can be from 100% of the original price for those who were able to buy a used car in one of the European countries or the USA. We are talking, of course, about used cars of the middle price range.
But the expected tax revenues turned out to be unattainable due to the rapid fall in the quantitative import of vehicles. If more than 211 thousand cars entered Ukraine during the reduced duty period, then in the following months — no more than 20 thousand
Is it worth buying a car now? It largely depends on the momentary need. If you need to buy a used car in Ukraine, then you should pay attention to two segments of the car market, which have not risen in price so much. This is:
- Hybrid vehicles, for which the duty is half that of cars with a gasoline engine and
- electric vehicles that still have zero rates.
It is now impossible to predict whether VAT, excise and duty on gasoline cars will decrease. The government is considering several bills at once, designed to reduce the tax burden on motorists. But for now, these are only projects.
Perhaps you will be lucky when placing an ad “I will buy a used car in Ukraine” you will be contacted by the one who imported the car during the duty-free period and the price will be adequate.
You can also wait for tax cuts to change.
Or opt for a hybrid or an electric car.
The choice is yours!