Deferred demand and ruble collapse cause a boom in used car market in Tatarstan

Deferred demand and ruble collapse cause a boom in used car market in Tatarstan

Demand is growing, and so is the price

The third quarter of 2020 brought an increase in sales in the used car market in Tatarstan. Avito Avto analysts estimate it at 37% compared to the second quarter of 2020. But it's not just the complete collapse of the car market during the spring lockdown. If compared with the same period in 2019, the growth, according to their calculations, was at the level of 10%. A similar situation is developing in the country as a whole: in Russia, the third quarter showed a 40% growth compared to the second and 18% year-on-year.

The average price for a used car in the third quarter in Tatarstan was 320,000 rubles, in Russia — 300,000. In our region, the average cost of a used car increased by 10% compared to the second quarter and by 3% over the year. Experts of the company believe that a rise in price follows after a rise in prices for new cars. Explosive demand in the used car market also contributes to the price behaviour.


As expected, according to Avito Avto, used Lada cars are sold the most in our region, as well as throughout Russia (140,000 rubles on average). Used Kia and Hyundai cars occupy the second and third lines of the most popular brands in this “hit parade”, and Chevrolet and Volkswagen round out the top five.

If to delve into the specifics of models, the first four lines of the popularity rating are taken by LADA: VAZ (Lada) Kalina (average price — 170,000) is in the lead, it is followed by VAZ (LADA) 2114 Samara, then VAZ (LADA) Granta, VAZ (LADA) Priora, and only the fifth is Kia with its super-popular model Rio.

“Everyone is coming out after quarantine”

The press service of TransTechService group confirmed the described trend to Realnoe Vremya:

“The market has finally woken up, everyone has come out of the quarantine, and we really note the consumer's interest in used cars. There are a number of reasons for this: consumer behaviour has strongly been affected by coronavirus. First, we can already talk about a certain economic crisis. Many people have lower incomes, and they are not ready to buy a new car, so they are considering used ones. Second, there is a deferred demand — in the spring, we were physically unable to work for almost a month and a half. By the way, this is why it is incorrect to compare sales in the third quarter with the second — we evaluate sales trends compared to the same period last year. Moreover, we see good growth in relation to some brands of the premium segment, and in the mass segment of cars.

Ruslan Abdulnasyrov, the director general of Apelsin car dealership and head of the Association of Car Dealers of Tatarstan, states an increase in demand even on a larger scale: by about 50%. He attributes this fact to the shortage of new cars on the market:

“In the spring, manufacturers were forced to stop production due to quarantine. Now, after lifting the quarantine, the production of new cars is failing to gain pace and meet the demand — after all, the current demand is now added with deferred one. As a result, when people want to buy a new car, they often simply do not have this opportunity physically. The market boom is also fueled by the instability of the ruble exchange rate. Therefore, many people decide to buy a used car, and the class is slightly higher. For example, a person would like to buy a new Kia Rio but buys a Kia Rio X-Line, with increased clearance, or in the configuration with automatic gearshift. So the highest quotes on the market now are for A-class cars with a mileage of up to 30,000 kilometres, which had only one owner, a “clean” history and no questions to the documents (for example, the original, not a duplicate vehicle license). The owners of such cars now openly raise their prices, asking almost as for a new one.

As for the best-selling brands, Abdulnasyrov confirms that, as always, the mass segment is leading: “This is a product designed for a large number of customers, and this is normal.”

By Lyudmila Gubaeva