The “First Car” Program
Romanians who have never owned a car have the chance to buy a new one, under the First Car program
Roxana Vasile, 07.10.2014, 14:02
Romanians who have never owned a car might have the chance to buy a new one, manufactured in Romania or abroad, under the “First Car” program. The Romanian state will guarantee half of the value of a loan worth maximum 50.000 lei, the equivalent of around 11.000 euros, whose interest rate should be smaller than the current market interest rate of 10 to 12%. The loan should be repaid within 84 months. Young people aged between 18 and 35 are the main beneficiaries of the program, but people older than 35 will also be able to benefit from it. The project is to be discussed by the Government and a decision in this respect will be taken next week, so as to enter into effect as of November 1st if green lighted by decision makers.
As many as 80.000 new cars are being sold in Romania every year, of which only 25% to natural persons. Second-hand cars, however, sell three times better than new ones. Under the circumstances, by initiating this program the Bucharest Government has set three main goals: to help young people buy a new car by accessing a state-guaranteed bank loan, to boost the domestic sales of new, less polluting cars and to stimulate the domestic car industry, so that natural persons should come to buy in the next few years 40% of the new cars. After a number of years of recession, triggered by an economic crisis whose effects seem to be fading constantly, the Romanian and European car industry is slightly recovering.
At the Paris Motor Show 2014, now in full swing, 125.000 sqm have been made available for 260 car brands representing 70 manufacturers to exhibit their new releases. Among them is the already famous Romanian low-cost brand Dacia, which has just launched in Paris the Stepway version of its models Lodgy and Docker and its two new entries, Duster Air and Sandero Black Touch. Cristian Milea, Opel Romania Country Director and Board member of the Romanian Association of Car Manufacturers and Importers, has details about the trends in the automotive industry.
“All car manufacturers seem to be closer to the environment and more interested in coming up with more eco-friendly cars. They are also attempting more accessible versions for consumers. We know Romania needs some time to adjust to the European trends, but all in all, the European trend line is also valid for Romanian carmakers. This industry is starting to grow, it becomes more predictable and this is a good sign for those working in the field and for all other sectors. “
The Romanian car industry is made up of 600 companies and counts over 200,000 employees, contributing 11% to the country’s GDP.
