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Lower auto tax will stimulate second hand car imports

Representatives of companies in the auto sector say that reduction by 25% of the auto tax and its payment even for cars from Romania registered before 2007 will encourage the import of second hand cars and will drop prices for cars already registered, a Mediafax analysis shows.

“The new auto tax will stimulate imports of used cars, blocked at the beginning of the year by a higher auto tax. At the same time, imposing the pollution tax on cars already registered will modify their market price,” said Bogdan Axinia, the general manager of second hand portal Auto.ro.
Cristian Bica, a member of the Association of Authorized Ford Dealers in Romania says the tax will reduce the price of cars registered before 2007.

“First of all there will be an increase of the number of people buying second hand cars abroad. Dealers who sell used cars and who have cars bought through the buy-back system for which they did not pay any tax will lose a lot of money. There will be many cars bought without perfecting documents,” Bica said.

On the other hand, Silviu Preoteasa, the chairman of the Association of Volkswagen and Audi dealers said the measure was beneficial for new cars, the money resulting from the generalization of the tax financing the program of auto renewal.

Nicusor Sorescu, the director of Radacini group pointed out that the new measures would lead to the increase of second hand car park.“Last year, half 0of the car park in the country was more than 11 years old. With the new measure we should expect an increase of the number of old cars. At the beginning of the year the registration of used cars was lower than the new cars, a situation which will not repeat itself in the present context,” Sorescu said.

In the first 7 months of the year, about 50,000 used cars were registered in Romania , 45% less than in the similar period of 2010. New car registrations were 40,000, on the drop by 14%.

The government approved on Wednesday, the bill on the emission of polluting gases coming from vehicles, which foresees the reduction of the tax by 15% and its payment for cars registered before 2007, for which such a tax was not paid, when the owner is changed.The tax is calculated according to capacity, engine , CO2 emissions and the depreciation of the car.