No Savings to Be Made: Cars in Russia May Become More Expensive Due to Increased Utilization Fee in Belarus

Previously, the difference in fees allowed importers to save money, offering cars cheaper than on the Russian market

If Belarus raises the utilization fee rates to the level of Russia, this may cause an increase in prices for cars imported into the Russian Federation. This was warned by Irina Frank, Managing Director of Frank Auto. In her opinion, such changes should stop the gray import of cars through the neighboring republic.

Previously, the difference in fees allowed importers to save money, offering cars cheaper than on the Russian market. Now this difference will disappear, which may lead to an increase in prices for cars imported through Belarus to the level of official dealers in Russia, as well as a reduction in favorable offers for buyers who previously used the Belarusian channel to save money.
Irina Frank, Managing Director of Frank Auto

Importers may raise car prices due to the increased utilization fee. For premium cars, this will add 5-15% to the cost, and for mass-market cars — 3-8%. As a result, Belarusian imports will become less attractive compared to direct deliveries to Russia. A decrease in the volume of gray imports is also expected. Previously, about 10-15% of new foreign cars were imported through Belarus, but after equalization of rates, this figure may fall to 2-5%.

Earlier in Russia, a new service appeared for safe purchase of used cars. The Russian car dealer Rolf introduced the Avtogarant platform, which simplifies the process of concluding a transaction between the seller and the buyer of a used car.

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