Current Trends in Lithuania's Automotive Market Show That Consumers Are Seeking Practical, Economical, and Reliable Vehicles, in Line With Economic Conditions and Financial Capabilities. According to the latest data, in May 2024, Lithuania registered 13,960 used cars for the first time—a 3.5% increase compared to the same period last year.

Affordability in the Spotlight

This year, practical cars such as the VW Passat, Škoda Superb/Octavia, Opel Astra, and Volvo V60/V40 have been the most popular choices. These models are in high demand due to their reliability, longevity, and low operating costs. Paulius Valiukėnas, head of the used car company "Longo LT," observes that consumers are increasingly choosing vehicles that meet functional needs while providing peace of mind regarding lower maintenance and repair costs.

“Now, buyers look for cars that are reliable and won’t bring additional worries in the future,” says Valiukėnas. He points out that car choices are increasingly driven by rational factors rather than purely emotional ones. Consumers are placing more emphasis on practical aspects such as operating costs, reliability, and long-term value.

Decline in Average Car Price

Valiukėnas notes that this year, the average price of a sold vehicle has dropped to €12,700, about 10% less than in 2023. This change indicates that customers are increasingly opting for more affordable cars, likely influenced by the high EURIBOR interest rate, which raises the cost of borrowing.

“The increasing EURIBOR base rate prompts many customers to rethink their plans and delay car purchases,” Valiukėnas explains.

Additionally, rising interest rates encourage buyers to assess their financial commitments carefully and look for economical options to reduce long-term costs. For these reasons, more affordable cars are becoming an attractive choice this year.

At the same time, interest in electric vehicles is also gradually declining, and, according to Valiukėnas, EV growth in Lithuania remains limited.

“Working within the used car market and being closer to the average consumer, we notice that interest in EVs has never been very high. EV prices are still high, so only a few can afford them. Most clients do not even consider buying an electric vehicle. Price isn’t the only factor hindering EV growth—apartment residents face charging challenges, as there is a lack of convenient public charging stations,” he notes.

Youth Engagement in the Market

Kamilė Dijokaitė, Head of Loan Product Sales at Inbank, observes that the car financing market is growing in 2024. Compared to 2023, the total amount financed this year has increased by 8%, although the average financed amount has decreased by €1,000, now averaging €6,000.

Market data shows that the largest group of buyers is aged 26-40, but the fastest-growing group is buyers aged 18-25, which increased by 50% compared to the first half of 2023.

A trend also shows that, compared to the same period last year, women are borrowing 3% more for car purchases, while men in 2024 are borrowing 13% more on average than women.

“The growth in younger buyers is an important indicator of youth engagement in the car market. This may be linked to a growing need for mobility, the start of careers, or the desire to own a vehicle that offers more freedom and independence,” says Dijokaitė.

She adds that the growth in the financing market reveals that more people are using financial solutions to acquire vehicles that better meet their needs and budgets. Although the average financed amount has decreased, this may indicate that consumers have more savings or are purchasing new vehicles after selling their previous ones, thus needing to borrow less.

About Inbank

Inbank is a fintech company with an EU banking license that connects merchants and consumers by offering next-generation financing solutions. Inbank has operated in the financial sector since 2010, with a loan portfolio currently reaching €1.03 billion. Partnering with over 5,400 merchants, Inbank provides leasing, consumer loans, and deposit services in Lithuania, Estonia, Latvia, Poland, and the Czech Republic, while also accepting deposits from Germany, Austria, Finland, and the Netherlands. Inbank’s bonds are listed on the Nasdaq Tallinn Stock Exchange.