Ruble fluctuations and their impact on car prices
The ruble has regained some strength, with the dollar dropping below 80 rubles and the euro just over 80. Yet since the start of the year, the cost of cars has jumped by as much as 40 percent, affecting both new and used vehicles.
There were moments when cars were traded for apartments, a clear sign of the pressure on the market. This came amid a sharp fall in the ruble, a growing shortage of components, and disruptions to global supply chains for automotive parts.
Today one challenge appears to be easing: a stronger ruble means imported goods and parts should become cheaper. In practice, price reductions across the board have not materialized. Only one company announced discounts, and that was mainly because the sticker price of their cars had already increased by about 1.5 times in a short period. This was the case with Exeed.
So what should buyers and drivers expect next: invest now in cars or wait for the market to settle?
Hilarion Demchikov, Business Development Director at Alfa-Leasing Group of Companies, explains that currency depreciation in dollars, euros, and yuan mainly affects cars that are imported. For now, the company has stocks of Chinese-made vehicles priced in yuan, which means the ruble cost of those cars should decline. In stock inventories, prices remain elevated from late February to early March, as dealers are reluctant to release stock despite weakening demand. The devaluation of the dollar has not yet driven price reductions for new cars. If buyers are not prepared to tolerate current pricing, dealers may be forced to lower the cost of new models.
The key guidance is to consider purchasing vehicles that are already in stock or held in the importer’s warehouse. For such vehicles, the price tends to stay fixed, unlike cars awaiting shipment. Alfa-Leasing has secured popular passenger car and commercial vehicle models and can offer customers a fixed price that does not hinge on ongoing market swings.
Medium-term price outlook for the car market
The expert believes that the dollar price will eventually stabilize relative to pre-crisis levels. The timing depends on market dynamics and how aggressively consumers buy new cars. If buyers stay active and purchase the available inventory, prices may hold high rather than fall. Conversely, a cooling in demand could push dealers to reduce prices to clear stock.