Some 40% Of 212,000 Used Cars Sold In Romania In '09 Older Than 10 Yrs - Carmakers

Some 40% of the 212,000 used cars sold in Romania in 2009 are older than ten years, and 95% of used car businesses are not subject to taxes, Ernest Popovici, head of Romania’s Association of Car Producers and Importers, or APIA, told a press conference Thursday.

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Popovici said many insurance companies urge their clients to have their cars mended at unauthorized service and repair facilities.

"After-sales businesses is one of the methods used by car dealerships to evade bankruptcy. In 2009, however, insurers began to direct their clients towards unauthorized service and repair facilities, a move which affected after-sales services," said Popovici.

Popovici also expressed concern about the Free Trade Agreement about to be signed between the European Union and South Korea, which stipulates reduced trade duties.

"The Romanian automotive market could be affected by this agreement, considering South Korea has exported 730,000 cars to the European Union, while the number of cars exported by the EU to South Korea was little over 20,000. A 10% cut in duties on Korean cars could trigger prices lower by nearly EUR1,000 per car," said Popovici.

In 2008, used car sales were up nearly 150%, touching a record of over 300,000 units.

In 2009, new car sales saw a sharp decrease of 52%, to 130,193 units.

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