Car dealers have noticed lately that buyers are being very careful in considering the purchase of a new vehicle and are in no hurry to fork out their money.

Last month, new car sales in Estonia fell by 4.9 percent on year. Over the first eight months of 2024, 12.8 percent fewer new cars have been sold than during the same period last year.

"Car purchases can be divided into two categories: those who buy showroom cars and those who order [them]," said Association of Estonian Car Dealers and Service Companies (AMTEL) CEO Meelis Telliskivi. Those who order have either already placed their orders or should be doing so any moment now."

He noted that buyers tend to show up in September and October, but that the start of the new year looks to be bleak.

"At the beginning of the year, in the first half, major corporations, authorities and rental companies may be buying," said Telliskivi. "I think the market, if it even recovers to this level at all, will sooner definitely fall a bit short of this year."

Buyers' interest in used cars, however, has gone up markedly.

"While the new car market has been in a slight decline – down 5 percent last month and nearly 12 percent over the year – the used car market and our sales have grown by around 25 percent," highlighted Amserv Auto board member Margus Nõmmik.

"Maybe folks are looking over their expenses and prefer lightly used cars," he continued. "But right now, there's been no rush due to the car tax."

According to Nõmmik, the hottest sellers are lightly used vehicles in the €20,000-25,000 range.

There has been a noticeable trend of buyers being more prudent and seriously considering how their vehicle purchase will affect their future financial commitments.

"We're seeing inquiries from private individuals about products with simpler exit methods," explained Auto Bassadone CEO Veiko Karu, adding that these kinds of leasing products are attracting significantly more inquiries.

"People are more thoroughly considering potential changes in the year ahead too," he continued. "Meaning, 'If other taxes also end up applying and I'm no longer able to fulfill this obligation, then how can I get out of it?'"

Karu added that buyers are also interested in options for trading in their current cars for vehicles with smaller engines and lower CO2 emissions.

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