In July, sales of new cars fell by 40 percent compared to July of the previous year. The VAT increase also affected the used car market. The decline was greater in the used car market.
Further from Tallinn, the sales decline is even greater. Fewer cars are being sold in Ida-Virumaa and the Tartu region. Private individuals are buying fewer cars. There, the decline is even over 40 percent.
Janek Eskor, sales manager at Topauto, said that they also experienced a decline in July. Sales of new cars fell, but used car sales remained stable. The average decline for the first seven months of the year was about 11 percent.
The leasing market grew from the beginning of the year until July. In July, there were fewer leasing applications. Customers did not spend as much time in car showrooms.
Meelis Telliskivi, CEO of AMTEL, said that the sales decline affects the entire car market. It also impacts aftermarkets and after-sales services. People are still driving with winter tires. This is a serious problem for the entire sector.