Tariceanu: significant inflow of second-hand cars to Romania

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The relaxation in the norms for buying used cars from Western Europe has led to a significant inflow of second-hand cars to Romania, PM Calin Popescu-Tariceanu told on September 23 the international conference of carmakers and producers of car components – Auto Romania 2008.
“ I voice my disapproval with the EU regulations. What is happening now in Romania is telling.
 
One may notice, due to the relaxation in the purchasing norms, a significant inflow of second-hand cars that slow down the sale of new cars. As long as we talk about the free market and disregard the “perverting consequences” of applying the regulations, we may wind up, like Poland, for example, being filled with second-hand cars”, explained Tariceanu.
 
The Government had to replace, on 1 July 2008, at the recommendation of the European Commission, the first car registration tax, which had been applied since 1 January 2007, with the car pollution tax.
The new variant of the car pollution tax provides for the decline in the level of the tax depending on the age of the car and its pollution level. For the Euro 4 or Euro 3 cars, the tax is calculating based on a formula that takes into account the emissions of carbon dioxide (CO2) and the specific tax expressed in euro/1 gram of CO2, the pollution norm, the specific tax expressed in euro/1 cubic centimeter.
 
The calculation formula includes also a tax-reduction quota.In July, the imports of second-hand cars stood at almost 37,000 units, six times more than in June and more than twice the monthly average of 16,000 units in H1, according to the statistics of the Ministry of Administration and the Interior. In the same month, 21,550 new cars were registered.
 
It was the first time when the number of registered second-hand cars was bigger than the number of registered new ones.
The registrations of new cars declined over 2% in the first 7 months of this year to 171,385 units, in a context in which their market share reached 60% versus the same period of 2007, when the registrations of new cars represented over 76% of the market.
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