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Car sales increase with 12.5%

17 November 2009 / 18:11:18  GRReporter
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Car sales in the beginning of November increased with 12.5% in comparison to the same month last year. This account for 7 927 sold new cars and their number last year was 7 046.

But if you take into consideration that 75 000 cars were taken out of use, then only 10% of the old car owners have bought new ones. The rest, do not have the financial means to buy one. Most of the new car buyers have paid cash! The other 90% of old car owners, not only that they do not have new cars but they were not financially compensated as the law requires.

Meanwhile, car dealers do not hide their worry that 2010 will be awful, because the measure which states that old cars should go out of use, is not valid anymore. Also, uncovered checks have become an everyday occurrence, there is constant lack of service parts, no customers visit car exhibitions and banks keep taking cars as a result of not paid bills.

On the other hand customers are interested in second hand cars with small engines, which are produced after 2005. No one is interested in cars produces before December 31, 2004 and no one will buy a car produced before 2000.

Based on forecasts, it is expected that at least 100 car dealers will go out of business, which will increase the total number of closed car companies to 900. If in 2010 the government does not take the necessary measures to support this sector, then the bankrupt companies will increase.

Despite this the 700 companies, which closed within six months, pressured banks to review their car credit loan policies. Out of 10 car loan applications only one is approved, reports Imersia newspaper. Also the car sale fall forced many banks to ask for their money back from car dealers and dealerships when their contract run out and they are sure that they will not renew those contracts again.

Car service owner gives an example with a client, who left his car for repair in June. The repair would have cost him €800 but the owner could not have afforded it. He took his car in November and asked the shop owner to pay him in eight interest free payments. 

Tags: Car dealer used cars Dealerships in Greece
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