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What will happen to the prices of cars in 2018

Что будет с ценами на автомобили в 2018 годуThe cost of cars for the end customer is affected by pricing products and rate of hryvnia to foreign currency purchases.

In 2018, imported cars from the EU will drop by 1% because of lower fees. The Association agreement with the EU, Ukraine needs to reduce the duty on imported cars from EU to 0. But while the level of import rates for petrol and diesel cars from EU is from 9% to 10%. According to the terms evroassotsiatsii Ukraine may establish a transition period of 10 years, which he did. Every year the fee will be reduced by 1%.

But this percentage is almost not noticeable, the head of the all-Ukrainian Association of automobile importers and dealers Oleg Nazarenko. Every year to machines with internal combustion engine (ice) increased environmental requirements. The manufacturer is forced to introduce new technologies that would make the car more environmentally safe, which leads to increase in the price of the car.

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“This percentage is almost nothing, – says Oleg Nazarenko. Is 90 – 100 dollars lower [rates] on a single vehicle. And cars becoming more expensive from year to year, as they are pushed more and more environmental requirements.”

If the car costs 10 thousand dollars, the reduction of excise duty of 1% is only $ 100, which do not affect the value of the car.

Ukraine could reduce the duty to 0, which would be noticeable. In addition to duties for customs clearance of the car must pay the excise tax (depends on engine size) and value added tax at 20%. Nazarenko believes that cars should be exempt from all taxes. Then the cars will be affordable and will decrease the amount of import of machinery without customs clearance on the Polish and Lithuanian rooms.

The cost of cars for the end customer is affected by pricing products and rate of hryvnia to foreign currency purchases. So small that another reduction in rates of duties on cars from the EU will not affect prices agreed with Nazarenko Director of marketing group of companies “AIS” Sergey Borovik.

“The Euro against the hryvnia, however, the dollar also is growing significantly faster than the reduced rates of duty. For example, during the year, the Euro strengthened against the dollar by 10 to 15%, that is, cars from the EU in dollars became more expensive on 10 – 15%. Add to that the devaluation of the hryvnia,” – said the expert.

In the currency of the car prices for the year have not changed. Short-term stock and other promotions do not count, the specialist stressed.

But the demand for new cars in Ukraine grew rapidly in relation to the analogical period of last year. In autumn, the growth stopped, the dynamics of November with a slight disadvantage to the last year, adds Borovik.

“The reason for the drop in demand the last few months – “Lithuanians”, the legal b/y imports, devaluation. At the end of the year, we expect the market capacity of new cars with about 80 000 units,” – said Sergey Borovik.

Among the new passenger cars in Ukraine traditionally the most popular class SUV medium price segment.

2018-th year can become record-breaking sales of used cars. In December of 2018 ends introduced in 2016, the concessional rate of excise duty for importation of used cars,. These bets are made used cars for 2000-4000 thousand dollars cheaper. If the Parliament does not renew the law, the car will rise from 2019.

Since the beginning of 2017, the Ukrainians cleared at the concessional excise duty of 50 309 used cars. This is 3.8 times more than in the same period of 2016. The number of imported cars in 2018 will grow no less important, experts predict.

Prior to the entry into force of the law the excise tax was so great that the tax burden on used car reached 90% – almost as much cost this car.

Ukraine since the New year will free electric cars from taxes: VAT 16.8 per cent and excise duty is 109 euros. There will be only a Pension Fund is 4.8%.

From VAT and excise duty electric cars are exempt for a year until 31 December 2018. The Parliament also freed from VAT taxi service with electric cars and rentals and leasing electric cars. However, these changes still must be signed by the President.

In November 2015, Ukraine abolished a 10% duty on import of electric cars. Because of this, in the country in 2016 and 2017 has doubled the number of electric vehicles.

The abolition of VAT and excise tax will increase sales tenfold, according to Oleg Nazarenko. It will make electric cars is 17% cheaper than in Europe, predicts the co-founder of Tesla Club Ukraine Nazar Shimon-David. For example, in Poland VAT on electric vehicles – 23%. Now in Ukraine are imported mostly second-hand electric cars. But the abolition of taxes to equal the value with the cars on the ice. In addition, the Ministry of infrastructure is already developing the project of creating a network of rapid charging stations for electric vehicles.

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