Romania’s 09 Junk Car Progr Might Fail On Limited Loan Access

“If everything goes according to schedule, the ‘Junk Car’ program might kick off in ten days tops. Up until now, access to loans was almost unrestricted, and given that it currently is rather difficult to access credits, the (targeted) volumes might not be reached,” said Brent Valmar, APIA’s vice-president and general manager of Porsche Romania dealership.

 

Valmar said APIA officials came with a solution to ease access to loans, which will allow leasing financing for the cars to be replaced.

 

The system might be up and running starting with the second half of the year, though, Valmar said.

 

He said the ‘Junk Car’ program might revive new car sales on the domestic market, given the significant discounts offered by dealers.

 

“Cars are so cheap today, and I mean all cars, not only those imported by Porsche Romania, and such prices will not be seen again (…). It is a delicate situation, as dealerships have stocks and they throw on the market aberrant discounts, which cannot be possibly sustained economically,” Valmar said.

 

Still, dealers sell for profit despite the huge discounts.

 

“Everybody sells for profit as the cars were imported when the leu (Romania’s currency – e.n.) was stronger against the euro,” Valmar said.

 

He said Romania will see less imports of used cars in 2009, which will boost new cars sales.