The expert predicted a rise in prices in the automotive market

The cost of new and used cars may rise in the near future due to the return of Korean brands to the Russian market, Anton Abramov, Deputy head of the Motor insurance underwriting department at Absolut Insurance, told Izvestia on May 5.

"The potential return of Korean brands with new prices and pent-up demand are likely to lead to higher prices. If not, then a significant increase is unlikely to occur — the market has approached the limit of purchasing power," he said.

According to him, in the used segment, competition will increase between "fresh" models from China and still desirable, but more "used" cars of familiar brands. The growing supply of more affordable Chinese used models will restrain price increases.

Currently, the cost of used cars remains generally at the level of last year.

"By moving into the category of "used" Chinese models, they enter the market area divided between the previous leaders. When the "new, guaranteed" factor becomes irrelevant, the buyer is more interested in such characteristics as durability, cost of maintenance, resale price, comfort, handling, capacity, safety. And, of course, prestige," the expert noted.

Another important factor is the too frequent updating of the model range, the lack of detailed catalogues of spare parts. This creates difficulties for the owners, which means it repels potential buyers.

"Well, there is a factor that no one expected: falling sales force dealers to lower prices for new cars, and this, in turn, puts pressure on the prices of fresh similar models with mileage," Abramov summed up.

Market scenes: Chinese cars rise in price more slowly than others

The cost of new and used cars in 2025 may increase by 10-15%

Earlier, on March 10, Director of Development and Sales of Avto.<url> Business Daniil Shkurygin explained that one of the main reasons for the decline in new car sales in Russia this winter was the high interest rates on loans. In addition, banks have new responsibilities to create reserves in case of possible risks associated with non-fulfillment of loan obligations by borrowers.