Trade Booms in Car Dealerships: What's Behind It?

In January-February of this year, the volume of car sales in Armenia reached 21 billion 464 million 400 thousand drams. ArmLur.am has learned from the Statistical Committee of the Republic of Armenia that this marks an increase of 85 percent compared to the same period last year.

These figures include sales of vehicles, parts, and accessories made through specialized retail outlets, as well as their technical service and repair. Considering these statistics, the car dealerships in Armenia, as they say, are bustling with trade.

It is assumed that the increased volumes of car sales are due to the implementation of the “Trade-in” system initiated by the Ministry of Economy, which has been in effect since January of this year. It is noteworthy that the “Trade-in” system for vehicles is widely used in many countries.

The media points out that this system has also been successfully implemented in recent years in Russia, Belarus, and Kazakhstan, which are members of the EAEU. With this system, citizens can sell their used vehicles to the official representative of the car brand in Armenia and purchase a new one, paying the price difference. The representative then repairs and resells the vehicles under beneficial conditions.

Furthermore, the old, used cars bought from citizens will be inspected, repaired, and technically serviced before being put up for sale by the official representative.

However, not all in the car market are on board with this system. Traders argue that through the implementation of this system, dealerships are losing customers, a situation exacerbated by the state.