Car sales en­joy short term boom of 21%

Financial Mirror (Cyprus) - - FRONT PAGE -

The to­tal reg­is­tra­tions of mo­tor ve­hi­cles dur­ing the first half of the year in­creased by 20.9% to 11,190 in Jan­uary–June, from 9,258 ve­hi­cles in the same pe­riod of 2013, ac­cord­ing to a Sta­tis­ti­cal Ser­vice re­port. Pri­vate sa­loon cars in­creased to 8,414, from 6,627 in Jan­uary–June 2013, an in­crease of 27%. Of the to­tal, 4,019 or 47.8% were brand new and 4,395 ve­hi­cles or 52.2% were used cars. How­ever, mar­ket an­a­lysts sug­gest this boom is linked to two sig­nif­i­cant fac­tors, that could turn out to be short-lived.

“De­pos­i­tors who had their sav­ings with Bank of Cyprus and have fi­nally se­cured their sav­ings in parts, af­ter the re­lease of 6-, 9- and 12-month fixed term de­posits, would rather put these sav­ings to good use and buy brand new cars in cash, be­cause they no longer trust the banks and the fi­nance schemes,” said one an­a­lyst.

“The same is also true for de­pos­i­tors with sav­ings in other banks, par­tic­u­larly with the Co­op­er­a­tives, where an air of in­se­cu­rity still lingers,” he said.

The sec­ond fac­tor was that af­ter de­lay­ing planned pur­chases from mid-2012, peo­ple need to re­place their old cars which are cost­ing more to main­tain and are look­ing for bar­gains, es­pe­cially in the cat­e­gory of new lux­ury and new com­pact cars, the an­a­lyst added. Goods con­veyance ve­hi­cles reg­is­tra­tions in­creased by 12.1% to 936 in the first half, com­pared to 835 in 2013. Light goods ve­hi­cles (vans, pick-ups) in­creased by 16.5% to 789, from 677 in 2013.

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