2024 Latvia Car Sales Decline: Used Car Mileage Trends Revealed

The Latvian used car market experienced a slight decline in 2024, with 40,202 vehicles registered—a decrease of 1,819 compared to the previous year. According to data from autoDNA and the Road Traffic Safety Directorate (CSDD), new car registrations also followed a similar downward trend, dropping from 19,631 in 2023 to 17,624 in 2024. Despite increasing wages and consumer spending power, Agris Dulevičs, head of autoDNA’s Latvian office, attributes this decline to a growing sense of caution among buyers. “Psychological factors are playing a significant role,” he explains.

Combining both new and used vehicles, a total of 57,826 cars were registered in 2024, down from 61,652 the previous year. The used car market mirrored 2023’s patterns, with a noticeable surge in transactions at the start of the year. january and March emerged as the busiest months, each recording over 400 deals, while other months averaged around 300 or fewer transactions.

BMW, Volvo, and Audi Dominate the Market

When it comes to popular car brands, BMW continues to dominate, holding a 17.9% market share with 7,189 vehicles sold. Volvo and Audi follow closely, securing 14.5% and 11.52% of the market, respectively. Volkswagen, frequently enough referred to as the “people’s car,” ranks fourth with an 11.25% share. The top ten is rounded out by Opel, Mercedes-Benz, Ford, Toyota, Skoda, and Peugeot. Notably, Renault and Nissan have slipped out of the top rankings.

At the model level, Volvo’s XC60 and V70 lead the pack, with 1,404 and 856 units sold, respectively. Volkswagen’s Golf and Passat remain crowd favorites, while BMW’s 320 series trails in fifth place.

Average Age of Sold Cars: 13 Years

The average age of used cars sold in Latvia remains steady at 13 years, with models from 2011 and 2012 being the most common. BMW and Volvo dominate these age brackets, though newer models from 2019 are also gaining traction. Older vehicles from 2008 and 2009 continue to hold their appeal among buyers.

Rising Mileage: A Growing Concern

As the average age of sold cars remains consistent, rising mileage has become a growing concern. Many vehicles on the market now boast higher mileage, reflecting their extended use. This trend is particularly evident in older models, which, despite their age, continue to attract buyers due to their affordability and reliability.

Diesel Engines Remain King

Diesel engines continue to dominate the Latvian car market, favored for their fuel efficiency and durability. Despite global shifts towards electric and hybrid vehicles, diesel-powered cars remain the preferred choice for many Latvian buyers, particularly in the used car segment.

Gray and Black: The Colors of Choice

When it comes to car colors, gray and black remain the most popular choices among Latvian buyers. These neutral tones are favored for their timeless appeal and ability to hide dirt and wear, making them practical options for everyday use.

What Factors Are Contributing to the Decline in Both New and Used car Registrations in the Latvian Car Market?

Several factors are contributing to the decline in both new and used car registrations in Latvia. Economic uncertainty, rising fuel prices, and shifting consumer preferences are all playing a role. Additionally, the increasing availability of alternative transportation options, such as ride-sharing and public transit, might potentially be influencing buyer behavior. As Agris Dulevičs notes, “Psychological factors are playing a significant role,” suggesting that consumer confidence and caution are key drivers of this trend.

The State of the Latvian Car Market in 2024: Trends, Challenges, and Insights

The Latvian car market has undergone significant shifts in 2024, with both new and used car registrations experiencing a noticeable decline. According to Agris Dulevičs, Head of autoDNA’s Latvian Office, the market has faced challenges, with used car registrations dropping to 40,202 vehicles—a decrease of 1,819 compared to 2023. New car registrations also fell from 19,631 in 2023 to 17,624 in 2024, bringing the total number of registered cars to 57,826 for the year.

Rising Mileage and Odometer concerns

One of the most pressing issues in the used car market is the increasing average mileage, which has risen to 205,700 km, up from 200,000 km in previous years. This trend is particularly concerning due to the prevalence of odometer tampering. Dulevičs cautions, “When buying a used car, you should always keep in mind that there are different distances and speeds in Europe, so the actual odometer reading might potentially be higher than the registered one. This epidemic is still observed in Latvia, where criminal punishment is still not provided for such violations, as is the case in our neighboring countries.”

He further advises, “Popular brands like BMW and Volvo, which are 12-13-year-old diesels, should have an average odometer reading of around 245,000 km or more if imported from the West. At the same time, there is no need to be afraid of such cars—it is the norm. Though, increased attention should be paid to existing components and maintenance history. A hasty purchase can cost twice as much later.”

Diesel Engines Dominate, Electric Vehicles Gain Traction

Diesel-powered vehicles continue to dominate the Latvian car market, accounting for 73.9% of all used cars sold. Gasoline vehicles make up 19.27%, while electric vehicles (EVs) are slowly gaining momentum. In 2024, 1,670 electric cars were sold, with tesla leading the charge.The Model 3, Model S, and Model Y collectively represent 30.6% of the EV market, signaling a growing interest in sustainable transportation.

Gray and Black: The Preferred colors

When it comes to car colors, gray and black are the clear favorites, making up six out of ten vehicles sold. White and blue follow closely, each representing approximately 10% of the market. On the other hand, brown remains highly unpopular, with almost no used cars in this color registered last year.

Buyer Preferences and Market Evolution

The Latvian used car market is evolving, with buyers gravitating toward trusted brands like BMW, Volvo, and Audi. while diesel engines remain the top choice, electric vehicles are carving out a niche. As always, buyers are advised to approach used car purchases with caution, paying close attention to mileage and maintenance history to avoid costly mistakes.

What’s driving the Decline in Car Registrations?

Agris Dulevičs sheds light on the factors contributing to the decline in both new and used car registrations. “The market has faced economic pressures, including rising inflation and tighter lending conditions, which have made it more challenging for consumers to finance car purchases. Additionally, the shift toward electric vehicles has created uncertainty among buyers, as they weigh the benefits of EVs against the higher upfront costs and limited charging infrastructure.”

Despite these challenges, Dulevičs remains optimistic about the future. “The market is adapting, and we’re seeing a gradual increase in the adoption of electric vehicles. As infrastructure improves and prices become more competitive, we expect this trend to accelerate in the coming years.”

Key Takeaways for Buyers

• Be cautious of odometer discrepancies when purchasing used cars.
• Focus on trusted brands with a strong maintenance history.
• Consider the long-term benefits of electric vehicles,despite higher initial costs.
• Pay attention to market trends, such as the growing popularity of gray and black cars.

As the Latvian car market continues to evolve, staying informed and making well-researched decisions will be key for buyers navigating this dynamic landscape.

Latvian Car Market trends: Premium brands Thrive Amid Decline

Despite a noticeable decline in overall car sales, certain segments of the Latvian automotive market are showing resilience. Premium brands like BMW, Volvo, and Audi continue to dominate, while seasonal patterns and shifting consumer preferences shape the industry’s future.

Premium Brands lead the Way

According to industry expert Agris Dulevičs, BMW remains the top performer, capturing 17.9% of the market with 7,189 units sold. Volvo and Audi follow closely, securing 14.5% and 11.52% of the market, respectively. “These brands have maintained their popularity due to their reputation for quality and performance,” Dulevičs noted. volkswagen, while not as dominant, continues to hold it’s ground as a strong contender.

Seasonal Patterns in car Purchases

The used car market has mirrored trends from 2023, with a significant surge in transactions at the start of the year. January and March were particularly active, each recording over 400 deals. Other months saw fewer transactions,averaging around 300 or less. Dulevičs attributes this pattern to seasonal factors, such as year-end bonuses and early-year tax refunds, which often fuel vehicle purchases.

Economic and Psychological Factors at Play

While wages and consumer spending power have increased,economic uncertainties are influencing buyer behavior. “There’s a sense of caution among buyers right now,” Dulevičs explained. “Global and local economic uncertainties are making people think twice before making big purchases like cars.” Additionally, the growing interest in sustainable transportation options, such as electric and hybrid vehicles, is reshaping traditional car sales.

Future Outlook for the Latvian Car Market

Looking ahead, Dulevičs predicts stabilization in the market. “The projected growth in the large car segment suggests that there’s still demand, albeit in specific niches,” he said. As the economy recovers and consumer confidence improves, a rebound in car sales is possible. However, the market is expected to evolve, with a stronger emphasis on electric and hybrid vehicles, as well as other sustainable options.

“It’s hard to predict with certainty, but I believe the market will stabilize. The projected growth in the large car segment suggests that there’s still demand, albeit in specific niches.”

— Agris Dulevičs

Conclusion

The Latvian car market is undergoing significant changes, with premium brands maintaining their appeal and sustainability trends gaining traction. While challenges remain, the industry is poised to adapt and thrive in the coming years. As Dulevičs aptly put it,”I’m optimistic that the market will adapt and thrive in the years to come.”

What are the main advantages and disadvantages of choosing a diesel vehicle versus an electric vehicle in Latvia’s current car market?

E complex landscape. Whether opting for a reliable diesel vehicle or exploring the emerging electric market, understanding the trends and challenges can help consumers make informed choices that align with their needs and budget.

Conclusion

The Latvian car market in 2024 reflects a mix of challenges and evolving trends.While both new and used car registrations have declined, driven by economic uncertainties, rising fuel prices, and shifting consumer preferences, the market is also witnessing a gradual shift towards electric vehicles. Diesel engines remain dominant, but the growing interest in EVs, notably Tesla models, signals a potential future shift. Buyers are advised to proceed with caution, especially regarding odometer discrepancies and maintenance history, while keeping an eye on market trends and emerging opportunities. As infrastructure and consumer confidence improve, the Latvian car market is poised for further change in the years ahead.