Booming sales of new cars in Central and Eastern Europe (CEE) are hurting used car dealerships and distributors.
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A report by AFP notes that AAA Auto – a Prague-based publicly listed used car specialist – has seen its share value more than halve following an end-of-the-year sales slump that has continued into 2008.
“From October to November sales dropped by 16-18 percent. When you take into account the new showrooms that we opened the real fall was more in the order of 20 percent,” said Anthony Denny, one of the firm’s senior execs.
“All our three core markets were affected – the Czech Republic, Slovakia and Hungary.”
A hike in oil prices meant lower and lower-middle class buyers postponed purchases, Denny told AFP.
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By GlobalDataAt the same time some of central Europe’s upwardly mobile buyers have discarded the traditional first step to car ownership – buying second-hand – and have “leapfrogged straight into the new car market,” maintains Denny .”
Denny also told AFP that he believes the slump is temporary, but the firm has had to cut back on expansion plans.
