Thursday, February 9th, 2012
Today's weather     
Foreign clunkers popular in Poland

19th January 2009
Bookmark and Share

The average imported used car is a 10-year-old Volkswagen

The year 2008 brought a record-high number of imported used cars onto Polish roads. If the Ministry of Finance’s preliminary data for December prove accurate, 1.1 million used vehicles were brought from abroad in 2008. That’s about 11 percent higher than in 2007, when about 994,600 used cars were imported. Over 44 percent of these cars were 10 years old or older, while only about 12 percent were manufactured in 2005 or later. The average imported car last year was 10 years old, while the most popular imported brand was VW.

Asked whether the trend would continue this year, Wojciech Drzewiecki, head of Automotive Market Research Institute SAMAR, admitted it was possible. “The key will be the value of the [Polish] currency, which determines the profitability of buying a used car abroad,” he said.

As automotive experts pointed out, 10 to 15 percent of these older cars are unable to meet technical requirements that would allow them to drive on Polish roads. But Poland’s system of technical check-ups is too ineffective to eliminate the junk from the streets.

A draft bill pending in the Polish Parliament would abolish the requirement of a first technical inspection accompanying the initial registration of a car in Poland. It would allow old cars to operate on Polish roads, if they have a valid technical approval from the country of import.

Car industry experts opposing the legislation say the current inspection requirements are the last available method of regulating the inflow of junk cars into Poland. However, according to the Ministry of Infrastructure, requiring a technical inspection while the car has valid certification from another European country is illegal according to EU law. It will certainly not help in halting the import of used cars.

“A serious systematic approach to the question of technical inspections would be highly desirable,” said Drzewiecki.

Oldies, but goodies
Top three used car brands in Poland in 2008
Brand number of imported cars share of used car market
1. Volkswagen 218,200 19.8%
2. Opel 145,000 13.1%
3. Ford 93,400 8.5%
Source: SAMAR

From Warsaw Business Journal


Advertisement
Corporate Finance/M&A Corner
Financial literacy
BY Les Nemethy
Just think: If more people were financially literate, there might never have been a mortgage crisis in the US, or a Swiss ... READ MORE
Corporate Finance/M&A Corner
Yields on European government bonds
BY Les Nemethy
The chart below represents one of the most important charts for European financial markets in 2011, perhaps even for global ... READ MORE
Our partners