Trends 2017 in the Ukrainian market b-cars

In the 2017 season, many motorists have already faced difficulties with the sale of his car. Yes and buy a good copy is not just – the market is full of broken cars. Increasingly, the alternative to self-attempts of selling the car becomes civilized trade-in. The leading market operators told our source about the fresh trends in this segment.
Today, the share of cars sold on trade-in and due to the trade-in, different operators in the market is from 5 to 20%. In particular, as reported by our source, the head of government “Reno Ukraine” Jan Minenko, trade-in deals dealer network. According to dealers, the sales volume is 5 to 10% of the sales volume of new cars.

And this despite the fact that the project for a trade-inu company “Renault Ukraine” was launched in 2012. During the crisis the project was suspended and is now at the level of implementation is finished structure has not yet restarted. To date, we are prepared, said Ms. Minenko, is to start with the project in late 2017 – early 2018 At the same time, a dealer network provides this service as a trade-in.

In a press-service of the Corporation “Bogdan”, our source reported that retail sales network “Bogdan-Auto holding” cars sold at trade-in company “Bogdan trade-In” made of 13.83%. And it’s more than last year. The market share of the company “Bogdan trade-In” in the month of June amounted to 0.68% of market sales used cars for the month of June 2017 in Kiev and Kiev region. For the half year (YTD) to trade-in sold 136 cars.

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According to Director of marketing group of companies “AIS” Sergey Borovik, sale trade-in value exceeds 15% -20% of the total retail sales. And this is definitely more than last year. Last year AIS was started with 5%, by the end of the year reached 10% -15%. According to the estimates of Mr. Borovik, the absolute number of transactions “AIS” is in the top five. For the half year (YTD) Group of companies “AIS” to trade-in sold about 500 cars.

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The main trends
Sales growth for a trade-in last but not least is associated with new opportunities for the customers operators.

In particular, the company “Bogdan trade-In” monitor customer feedback monitor the quality of the cars sold and pre-sale preparation. The company “Bogdan trade-In” checks all incoming vehicles at certified service stations, produces the necessary repairs, and then issues a guarantee on the chassis. Therefore, we believe that the purchase of vehicles under the program trade-in, the company “Bogdan trade-In”, best investment for clients.

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As reported by our source, Sergey Borovik, in the Group of companies “AIS” first proposed corporate trade-in with “wholesale” party avtovykup, respectively, of wholesale party and selling new cars. Another new feature from AIS – trade-in/used on/used. Also AIS is one of the few companies that offers trade-in service within the whole country and with the purchase of any of the more than 15 brands.

Last year, his own Department on the trade-in was opened and in the network of “UkrAVTO”. The company “Avtokhit,” according to the assessments of top managers, a year later had to sell about 20,000 cars. At least this figure is sounded during the launch of “Avtokhit”. A year has passed, but on the request of our source about the volume of sales, we no reply received.

In Kiev has opened a new service center for the sale and purchase of cars with mileage Avtokhit

What hinders the development of the trade-in?
Despite all the declared advantages and long-term history in Ukraine, the trade-in service in our country is not fully developed. According to market operators, there are objective reasons.

According to Yana Minenko, with the adoption of the law last year, sales of used cars through the official salons were the price closer to the market. But in reality there were many administrative problems. For example, there is no specific explanation of the mechanism of charging VAT when selling used car: charge it on the entire cost of a car, or on cost with the difference between purchase and sale prices. This hinders the development of trade-in through the official network, and also affects the formation of prices, because some businesses are on the old and charge VAT on the full amount of the sale.

There are also a number of administrative problems that were set forth by the Automotive Committee at European Business Association, the Prime Minister of Ukraine in the letter, which was kindly provided by our source. Here are the main points from it:
1. in current trade rules cars do not define the concept of “trade-in” (trade-in) that displays the exchange service used car to the new enrollment value used car price new, in which it exchanges.
2. The need for re-registration of a vehicle upon redemption of the dealer from the customer for resale, and many other issues.

In addition, according to Ms. Minenko, today there is competition from cars in the European rooms. But official statistics on them is not, so the accuracy of the claim as far as this competition is great, difficult.

In “Bogdan trade-In” I believe that the lack of development of the trade-in service in our country is due, primarily, with mental characteristics, level of confidence and awareness. Sooner or later, every driver wants to replace the car on newer and more modern, so will be looking for a reliable and proven method of sale of the car.

Trade-in – service, Western-style abroad every year under the scheme sold approximately half of all implemented in the auto market.

Another reason: competition from uncleared cars. In “Bogdan trade-In” we hope this injustice will be removed. Why do some citizens purchase a car with the payment of all taxes, others use a car duty free?

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As reported by our source, Sergey Borovik, he does not agree that the trade-in in Ukraine is poorly developed. In AIS, this service was actively developed in 2011 and is now gaining a fairly large momentum. As for competition from uncleared cars, then, according to Mr. Borovik, there is always indirect indirect competition with any of the grey and illegal schemes of delivery vehicles.

As you can see, the volumes sold under the scheme trade-in value for the year grew significantly. But the service has not yet become dominant, but only gaining popularity. Many potential sellers and buyers of such cars, often confused with the prices. They are the official sellers of used equipment is not as attractive as the car market or in the ads. But they are never equal, because you have to understand that when the official trade-in is a fee for service, quality, reliability and security of the transaction. Apparently, while the operators have not been able to convince so to buy or sell a car more comfortable and safer.

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