15.Jul .2022 13:00

Used Car Prices Have Increased- Association

Used Car Prices Have Increased- Association
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The prices of second-hand cars imported into Georgia have increased. Alexi Noniadze, the founder of the Georgian Association of Auto Importers notes that there is 30% increase in the prices of used cars compared to 5 months of last year. There are several reasons for the price increase, including logistics costs growth and supply chain disruptions due to delays in microchip production.

Demand for automobiles in the market has increased, however, due to the shortage, the manufacturers cannot supply the desired amount to the market.

"The Russia-Ukraine war has a negative impact on the market. Car owners in the US and Europe cannot buy new cars. Consequently, when the demand for new cars decreases, the supply of used cars to the market decreases. As a result of reduced supply, prices also increase. Logistics is also a problem, if it used to take an average of 2-3 months to import a car, now it is more complicated and transportation takes 4-5 months. This in itself affects the price, the cost of logistics has increased by 20-30% compared to the same period last year. There is also high inflation in the country, which determines the price", - explained Alexi Noniadze.