Since the beginning of the pandemic, approximately 15% of used cars sold in Latvia have been purchased remotely (only the final delivery takes place in person during the off-site or online car purchase process), and between Baltic Latvian residents have been the most active countries, according to the sales data of the used car dealer “Longo Group”.
–
Content will continue after the ad
Advertising
–
Latvia is also a leader in terms of cross-border trade, as our citizens are more active than others in ordering cars from other Baltic countries.
“August was the first month of the last six months – since March, the general economic downturn began due to Covid-19, when the industry could see more buyer activity and a more significant increase in the number of units sold,” says Longo Group board member Edgar Cepp.
“Our sales figures returned to the pre-crisis level, 15 to 20 customers visit the car dealership in Riga every day. In general, car prices have risen due to limited supply, and only the strongest players will be able to continue to operate successfully – companies with a stable supply network and procurement channels. partners, “he said.
According to the analysis of Longo Group residents’ habits, cars bought online are often bought by Rigans and people in the regions. Compared to the pre-crisis period of the pandemic, buyers of used cars are much more likely to request remote services, such as sending a video before seeing the car in person, delivering the car to the new owner’s place of residence after the transaction.
Although at the beginning of the pandemic, overall car sales in Latvia fell by 80-90%, now the industry has already adapted to changes in demand and is able to provide a more diverse range of vehicles, the company points out. Used cars compete with new ones because they have a wider range of prices and equipment. People are also more cautious about buying expensive goods at a rapidly disappearing market price, such as new and luxury cars, the car dealer has observed.
“Longo Group” points out that used cars are becoming more and more in demand in the Baltics in the price range of around 9,000 – 10,000 euros. Despite the pandemic, buyers in the used car market are growing interest in vehicles close to 20,000 euros. Longo Group used car buyers most often looking for “Volvo” (23%), “Volkswagen” a “Opel“87% of all cars purchased this year are diesel – powered. There are also hybrid cars on offer in Latvia, but demand for them is still low – buyers are waiting for the first generation of new versions to enter the secondary market.
Restrictions and the economic situation in Latvia and in the world affect consumer behavior and purchasing power – customers carefully evaluate priorities, but nevertheless want to maintain mobility, as well as safe transportation provided by a private car. Longo Group predicts that the impact of the potential second wave of Covid-19 on the overall car market will not be as great as this spring, as dealers are more willing to provide services remotely. It is possible that the new car market will feel a bigger drop – due to rising spare parts prices and declining buyers’ solvency.
“In the Western European car market, there is a tendency for individual consumers to continue to use their cars and not buy new ones, while companies extend operating car leasing terms, so the total supply of used vehicles is declining sharply this year. For small car dealers in Eastern Europe in the gray area, in order to optimize costs and not have to raise prices significantly, or buy vehicles with serious defects and huge mileage (speedometer readings are often manipulated before entering Latvia), which are left over after the purchase of larger market players. Due to the reduced car supply, buyers are at greater risk of not being able to find a car that suits their needs and purchasing power, which limits their and their family ‘s safety due to the global situation, “the company comments.
–
