Car sales soar since cut in prices

SALES of new cars have soared this year following last year’s tax reform that resulted in prices of new vehicles under 1.8 litre engine capacity dropping dramatically.

Sales in October last year were at an all-time low over speculation that cars would become cheaper with duty cuts ahead of EU accession, with the decline plunging the market into a crisis that dealers lamented would be difficult to overcome.

The slump in sales was caused by government delays in introducing a new tax package for cars, and frantic rumours that car prices could be reduced by up to half, resulting in people holding back until cars became cheaper.
But new car dealers were yesterday euphoric over the sudden demand for cars.

Last year’s price cuts also resulted in new car dealers getting the better of used car dealers since new cars are now almost as cheap as used ones.
“Last year, used car dealers had 75 per cent of the sales pie because used cars were cheaper,” Nissan’s Martin Newton told the Cyprus Mail yesterday.
“But to give you an example, our new Micra now sells for £6,900 while one-year-old used Micras are being sold at £6,500. Which would you want to buy?” he asked.

“Of course, the sales have only gone up on saloon cars up to 1.6 litres engine capacity, while sales on our bigger cars and our 4×4 have gone down.”

Newton said the island’s biggest seller, Peugeot, had sold over 280 cars in April, with Renault close behind with 220, followed by Nissan and other Japanese brands at 140. Mercedes have sold around 70 cars and BMW 100.
According to the Transport Department, a total of 3,326 saloon cars were registered this April, while only 995 were registered last year.