CYPRUS: Bank withdrawals boost car sales by 30%

Private saloon car registrations increased by 29.8% to 14,453 in the first ten months of the year from 11,136 in January – October 2013, according to data published by the statistical service Cystat.

Car dealers have often told the Financial Mirror that the reason for the continued rise in sales, especially brand new cars that carry a 7-year warranty, is that consumers have withdrawn their savings from banks for fear of a second bail-in of unsecured deposits, as happened in March 2013 to rescue now-defunct Laiki and recently recapitalised Bank of Cyprus and the Cooperatives.
The insecurity has also prompted consumers to buy goods, such as cars, in cash and not be tied to medium or long-term financing or hire-purchase deals.
According to Cystat, 1628 saloon cars were registered in October compared with 1129 in October 2013 and 1458 in September 2014.
The total registrations of motor vehicles increased by 23% to 19,050 in January-October this year, from 15,486 in the first ten months of 2013.