New car prices to remain stable says PwC report

In 2004 prices rose by 3.9%, as compared with 12.3% in 2003. PwC analysts believe that prices will not increase notably this year either, as producers and dealerships will offer discounts to maintain their market share. Rafał Krawczyk from PwC says that on top of the discounts, dealers are likely to offer additional equipment or longer warranty periods. "The price differences between Poland and Western Europe are now small enough for car producers and importers to keep prices steady." A key factor keeping prices in check last year was the unprecedented influx of used cars from abroad after the abolition of VAT on such purchases following EU accession. As a result, dealers sold only 316,000 new cars, almost 11% fewer than in 2003 when sales were not exactly vibrant either. (Puls Biznesu, p. 8) T.J.