Why has the demand for used cars from abroad increased? AMRI interview with Hromadske Radio

In August 2024, the Ukrainian fleet was replenished with more than 25,700 used cars imported from abroad. Compared to August last year, registrations of such cars increased by almost a quarter — 22%. According to Stanislav Buchatskyi, the increase in the number of used cars in Ukraine from abroad occurred due to the announced tax of 15%.

The head of the Institute of Auto Market Research spoke about this on the air of the Hromadske Radio .

"The answer to the question why exactly in August Ukrainians so actively brought cars from abroad to register is the news that the government will initiate the introduction of an additional tax of 15% of the value of an imported car. In the end, this offer was withdrawn. They changed their mind about introducing it, but this news had its own effect. Those Ukrainians who hesitated, but planned or postponed buying a car abroad, they just took it and did it in August," Buchatskyi explained.

Accordingly, according to the head of the Institute of Auto Market Research, in the coming months we will see a rather serious drop in the statistics of car registrations from abroad. Because the announced tax forced those people who postponed the purchase for the coming months to hurry.

"Most likely, in September, October and November, we will see a drop in the statistics. Moreover, it is quite serious, by 20-30%. Because those people who have already done it (brought and registered a car from abroad — ed.) should have stretched it out for three months, but they did it in a month. They wonʼt do it now," says Buchatskyi.

As Stanislav Buchatskyi, head of the Institute of Car Market Research, explains, the demand for used cars from abroad in August was a record for the past two years. It was larger only shortly after the start of the full-scale invasion, in April-July 2022, during the so-called "zero clearance". At the same time, the demand was provoked by the opposite situation — the absence of a tax.

"If we compare with the statistics of, for example, last year, we see growth, and it is quite significant. Because this is the actual record for the last two years. More cars with mileage were brought from abroad only during the so-called zero customs clearance. It was during April-July 2022, and then this boom was triggered precisely by the absence of taxes," Buchatskyi said.

However, Stanislav Buchatskyi explains that, according to statistics, compared to the times before the full-scale invasion, there is currently no increase in demand at all. Because then people brought twice as many cars from abroad: 50,000 compared to the current 22, sometimes 25,000. There is no increase in demand, if we compare the statistics with the previously mentioned "zero customs clearance".

​​"As of today, we understand and see from the statistics that before the beginning of the full-scale invasion, Ukrainians brought about twice as many used cars from abroad every month. That is, about 50 thousand. As of today, on average, we have 22, 23, sometimes 25 thousand. Therefore, if we talk about the comparison with last year, yes, we see growth. If compared with the so-called zero blur, there is no growth. And if you compare it with the times we had before the start of the full-scale invasion, then, accordingly, there is no growth at all," Buchatskyi explained.

Also, the head of the Institute of Car Market Research shared that the segment of cars chosen by Ukrainians has not changed in any way since the beginning of the full-scale invasion. Most people choose family cars worth up to $10,000. The most popular models are Volkswagen Golf, Škoda Octavia and Volkswagen Passat.

"The segment has not changed in any way since the start of the full-scale invasion. Even as it has been since about 2018, Ukrainians, for the most part, buy ordinary, budget, relatively family cars. That is, if we look at the Ukrainian car market in general, according to statistics, we see that 80% of deals are cars worth up to 10 thousand dollars. At the same time, there is a rather pronounced peak at 8 thousand. And, surprisingly, cars up to $2,000 are also in such high demand. If we talk about luxury cars there, there are actually quite a few of them, up to one and a half percent of the total number. If we talk about the models, then everything is usual there too, from month to month these ratings are repeated. In first place is the Volkswagen Golf, a standard family car. In second place is Škoda Octavia. The third place is Volkswagen Passat," says Buchatskyi.

So, according to the expert, "Ukrainians even before the start of the full-scale invasion and today have fairly stable preferences: they choose time-tested, relatively reliable and relatively inexpensive cars."

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