Used cars go west in droves
16. 11. 2015 | Source: BusinessInfo.cz
The Czech Republic has become a favourite hunting ground for operators of used-car markets in Germany and their western European counterparts.
The Czech crown exchange rate, which the central bank is keeping a tight rein on, means it pays off for these used car sellers to source not-so-old, quality second-hand vehicles on the Czech market. While 26,000 used cars were transported abroad in 2010, the figure for this year is expected to exceed 91,000.
The turning point came at the end of 2013 when the Czech National Bank [ČNB] started out with its currency intervention regime and the crown weakened to CZK 27 per euro. "During a comparison of 800 used vehicles offered on the German website Mobile.de and the Czech portal Sauto.cz, we discovered that the average price of the compared vehicles was 44 thousand crowns higher abroad," said Martin Pajer, director of the Cebia firm. It is therefore not surprising that queues of foreign buyers are found at the Czech "autobazars".
Originally published in E15 weekly, economic and business newsmagazine. Author: Jaroslav Matějka