Car market trends: which models are the most popular? | Business

According to the latest market overview, the number of used car purchases has increased significantly this year.

in 2024 August 1 This year’s Lithuanian car market trends show that consumers are looking for practical, economical and reliable vehicles, taking into account economic conditions and financial possibilities. According to the latest data, as many as 13,960 used cars were registered for the first time in Lithuania in May 2024 – 3.5 percent. more than the same period last year.

Economy comes first

This year, practical cars such as the VW Passat, Skoda Superb/Octavia, Opel Astra and Volvo V60/V40 are the most popular. These models are highly sought after due to their reliability, durability and low running costs. According to Pauliaus Valiukėnas, manager of the used car company “Longo LT”, consumers are increasingly choosing cars that not only meet their functional needs, but also provide peace of mind due to lower maintenance and repair costs.

“Now buyers are looking for cars that are reliable and will not cause additional problems in the future,” says P. Valiukėnas. He notes that recently the choice of a car is increasingly determined by rational arguments, and not only by emotional factors. When purchasing a car, consumers increasingly value practical aspects such as running costs, reliability and long-term value.

Decreasing average car price

The expert points out that this year the average price of a car for sale dropped to 12,700 euros, which is about 10 percent. less than in 2023. This change shows that customers are increasingly choosing cheaper cars. One possible reason is the high EURIBOR interest rate base, which increases the interest burden.

“The increasing EURIBOR interest base encourages many customers to review their plans and postpone the purchase of a car,” says P. Valiukėnas.
In addition, rising interest rates are forcing buyers to take a closer look at their financial obligations and look for more cost-effective options to reduce long-term costs. For these reasons, a cheaper car is becoming an increasingly attractive option this year.

Is interest in electric cars waning?

At the same time, the interest in electric cars is also slowly fading and according to P. Valiukėnas, their growth in Lithuania is still limited.
“Working with the used car market and being closer to the typical average consumer, we find that this interest has never been higher.

The prices of electric cars are still high, so few can afford to buy one. For this reason, the majority of customers do not even consider purchasing an electric car. – says the expert. – Price is not the only factor hindering the growth of the electric vehicle fleet. Those who live in apartment buildings face difficulties in charging an electric car, because public charging stations are missing or inconveniently located.”

Young people are actively involved in the market

Kamilė Dijokaitė, Inbank loan product sales manager, notices that in 2024 the financing market for car purchases is growing. Compared to 2023, this year the total amount financed increased by 8 percent, although the average amount financed decreased by 1 thousand. euros and now reaches 6 thousand. euros.

According to the data of the market review, the largest part of buyers is the age group of 26-40 years, but the number of buyers aged 18-25 years is growing the fastest, which, compared to the first half of 2023, has increased by 50 percent.

There is also a trend that, comparing the first half of 2023 with the corresponding first half of this year, women borrow 3 percent for a car. more. Men borrow 13% on average in 2024. a larger amount of money than women.

“The growth in the number of younger buyers is an important sign of the engagement of young people in the car market. This may be related to the increasing need for mobility, the start of a career or the desire to have one’s own vehicle, which provides more freedom and independence,” says K. Dijokaitė.

The growth of the financing market also reveals that more people are taking advantage of financing options to purchase vehicles that better suit their needs and financial capabilities, she said. Although the average amount financed has decreased, this may mean that consumers have more savings or are buying a new car after selling their old vehicle, so they need to borrow less.