Take it while you can: experts predict rising car prices
- December 25, 2023
- 0
Throughout 2023, prices on the Russian car market continued to rise steadily – the reason for this was several factors. And unfortunately, the coming year should not bring
Throughout 2023, prices on the Russian car market continued to rise steadily – the reason for this was several factors. And unfortunately, the coming year should not bring any special surprises in this sense: there are no conditions for a price reduction.
According to analysis firm Avtostat, it makes no sense to even expect price stabilization on the car market. Deputy head of the agency’s analysis department, Viktor Pushkarev, noted that price increases “will definitely happen,” if only because of inflation. In addition, car manufacturers must cover all production and logistics costs while trying to maximize profits. Dealers also want to benefit from this.
“For a rough assessment of price dynamics, you can use the dependence of the weighted average price of a car on the official annual inflation rate. For example, in 2022 inflation was 12% and price growth was 29%; in 2023, these figures are projected to be 7.5% and 21% respectively.
And if the budget of the Russian Federation for 2024 shows a forecast of a minimum inflation rate of 4.5%, then the increase in car prices could be as much as 10-12%,” says Pushkarev. To stabilize prices, a stable ruble exchange rate, stable and affordable interest rates on loans and a reasonable disposal fee are needed, experts say.
According to analysis firm Avtostat, it makes no sense to even expect price stabilization on the car market. Deputy head of the agency’s analysis department, Viktor Pushkarev, noted that price increases “will definitely happen,” if only because of inflation. In addition, car manufacturers must cover all production and logistics costs while trying to maximize profits. Dealers also want to benefit from this.
“For a rough assessment of price dynamics, you can use the dependence of the weighted average price of a car on the official annual inflation rate. For example, in 2022 inflation was 12% and price growth was 29%; in 2023, these figures are projected to be 7.5% and 21% respectively.
And if the budget of the Russian Federation for 2024 shows a forecast of a minimum inflation rate of 4.5%, then the increase in car prices could be as much as 10-12%,” says Pushkarev. To stabilize prices, a stable ruble exchange rate, stable and affordable interest rates on loans and a reasonable disposal fee are needed, experts say.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
