Second-hand car market in Estonia down 26 percent

At the time when it has become increasingly difficult to lease new cars and people have been postponing purchase decisions, companies say that volumes in the second-hand car market are down between 15 and 25 percent.

Urmas Karik, CEO of Veho Eesti that sells Honda and Citroen cars, says very few people are currently buying cars. “But we did well in September that was the best sales month for the year for us when we sold 133 second-hand cars.”

Raul Kivirand from A2-Autowelt that sells second-hand cars says that many customers are looking for exchanging their more expensive cars with cheaper ones. “People simply want to cut their large leasing bills,” he said.

Car dealers say that many leasing companies have confiscated luxury cars from customers who have not kept up payments and put them on sale.

According to Karik, more than half of people who buy a new car from their dealership exchange it with their current car. “A few years ago only about a third did so an preferred to sell their current car themselves on the aftermarket,” he said.

Source http://balticbusinessnews.com/default2.aspx

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Estonian October CPI slips below 10 pct

Estonian consumer price inflation fell below 10 percent in October for the first time since the end of last year, data showed on Friday.

The rate of price rises in the small Baltic state have been easing as the economy has slowed sharply. The government hopes inflation will ease further so Estonia can be ready to adopt the euro in 2011.

The consumer price index rose 9.8 percent year-on-year in October with a 0.4 percent rise on the month, the state statistics office said in a statement.

Inflation was last below 10 percent in December, at 9.6 percent.

The office said the 0.4 percent monthly increase in October was driven mostly by increases in the price of heating and natural gas, both of which rose more than 20 percent, counterbalanced by a fall in automotive fuel prices.

"Compared to October 2007, the index was mainly influenced by expenditures on housing, which accounted for over a quarter of the total change and of which the price increase of the heat energy gave two thirds," the office said.

It added that food, alcoholic beverages and tobacco each accounted for about a fifth of the total yearly increase.

Analysts in a Reuters survey had forecast monthly inflation at a median of 0.6 percent and annual inflation at 10.0 percent.

Estonia and the other two Baltic states and their banks have been hit by ratings or outlook cuts by ratings agencies due to macro-economic imbalances, such as high inflation, high current accounts and worries the countries will suffer a sharp slowdown.

Estonia increased excise duties on heating costs during 2007 and on fuel from January 1 2008.

Source http://fxstreet.com/news/forex-news/article.aspx

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Estonia has fourth place in economic freedom

Estonia’s position in the chart of 25 European countries is swinging from 4th place in economic freedom to last place in percentage of prisoners and HIV-positives, postimees.ee reports.

Estonia is among the best countries for economic freedom, internet users percentage (10th place), economy’s competitiveness (13th place and corruption level (13th place), Mati Heidmets, professor at Tallinn University said at seminar “Estonia’s life quality compared to Europe’s”.

We’re in the middle of list with numbers of computers per households (15th place), buying power according to GDP (19th place) and in satisfaction with life (place 19).´

Estonia is among the worst countries in human development index (place 22), suicides (place 22), life expectancy (places 23-25), gender equality (places 18-22), expenses on social defence (place 23) and in attitude to multi culture (place 24).

Estonia’s detainees’ and HIV-positive people’s percentage was the highest of 25 countries in 2005-2006.

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