Economy Europe General News Politics

The Announcement of New Regulations in the EU Raises the Prices of New Vehicles and the Demand for Used Ones

The “Euro 7” regulation could increase the cost of car production, and thus the price, which would be 2,000 euros more than the current situation. As market rules dictate, this will also affect used cars.

The used car market has been in a trend of rising prices for several years, primarily due to the insufficient production of new vehicles due to the general increase in the price of raw materials, and a partial crisis in the chip market. With the announcement of a further increase in the price of new cars, as experience shows, the demand for used cars will also increase. How much the price increase will be will be determined by market trends.

Current prices of used cars

Owners of auto-places say that used cars are currently rising in price because there is still insufficient production of new vehicles, but that now only those who have to buy used cars. Many say that they do not decide to change because of the prices.

In Serbia, the price of used cars increased by more than 25 percent. Stabilization on the used vehicle market is expected only in 2024. Used vehicles manufactured between 2005 and 2010 are mostly bought in Serbia, and 80 percent of used vehicles sold are older than ten years.

Due to the large price increase, it is often said that they have become a luxury. Car prices have been steadily rising for the past two years, as a shortage of parts, especially computer chips, has limited supply due to high consumer demand. Globally, those higher prices have been a major factor in overall inflationary pressures since roughly 40 percent of American households buy a car each year.

“Euro 7 regulation”

The regulation aims to reduce emissions of harmful gases and protect the environment and is part of a wider project for the complete abolition of internal combustion engines by 2050.

On the one hand, manufacturers are opposed to stricter norms for the regulation of exhaust gases because they will lead to an excessive increase in production costs, which will spill over into consumer prices, with the risk that the volume of sales of traditional models will decrease.

That is why many believe that it will have a negative impact on the European car industry, and are asking for the application of the norm to be postponed. This is primarily the position of eight European countries: France, Italy, Romania, Bulgaria, Poland, Hungary, Slovakia and the Czech Republic.

Source: kamatica