When making a choice about buying a car, impulse plays an increasingly smaller role, says Edgars Cērps, chairman of the board of “Longo Group”. A similar assessment can also be given for the overall European car market.
Calculator thinking
One of the main topics of 2025 was the future of internal combustion engines.
Currently, the European Commission has lifted the ban on internal combustion engines after 2035, taking the strain out of the buyer’s decisions.
People usually do not buy a car for a year or two, and such clarity gives a sense of security that the chosen car will not lose its meaning because of a certain date.
In the used car segment, this means a more stable perception of values and a calmer purchase decision – the buyer can focus on what is really important – condition, cost and suitability for everyday life.
The situation in the Latvian economy has improved, and this is also visible in the results of car leasing.
Car buying has gained momentum, largely driven by it Euribor the drop in rates and the recovery of citizens’ purchasing power.
“With the improvement of economic well-being and the easing of interest rate pressure, the interest in buying a car using operational or financial leasing, as well as a car loan, has been high, and it is particularly driven by private individuals. This is important because
it is private individuals who set the tone in the used car market – people are looking for a solution that is achievable, safe and predictable.
The availability of financing often allows us to raise the bar – from “something that drives” to “something that will serve and not cause surprises”, says E. Cērps.
At the same time, the buyer has become very pragmatic – the monthly payment, insurance, fuel consumption, taxes, maintenance, possible repairs are calculated.
A big change is consumer interest in insuring potential technical glitches for used cars. This kind of “calculator thinking” is one of the healthiest signs of market maturity.
A new car is harder to find
In the new car market in 2025, we see a rapid increase in registrations. But this is not a signal that the importance of the used segment is diminishing. Rather, it shows that supplies have normalized and the market has regained its rhythm.
The most important factor here is another factor, namely
The “threshold of entry” for a new car has become significantly higher in recent years.
It is for this reason that the used car market continues to fulfill its main function – to provide a wide choice in different budgets, where for a similar amount you can often get a car that is better equipped, more comfortable and more practical on a daily basis than in the new car segment.
In the used car segment, people are increasingly choosing to deal with a reliable legal company rather than a private person.
The buyer is increasingly willing to pay a little more for a sense of security – verifiable history, understandable technical condition, transparent transaction and responsibility.
This direction generally strengthens the industry –
the demands of the market are increasing and so are the standards.
In trends in buyer taste, practicality continues to win, and interest in station wagons, crossovers and SUVs remains strong, while the sedan segment narrows a bit.
At the same time, people pay more attention to design, interior, equipment, comfort and how the car fits into their everyday life.
The year 2025 showed that the Baltic market is not homogeneous and that political decisions can quickly change the rules of the game.
While the market in Lithuania is growing, in Estonia, where new car taxes have been introduced and VAT has been increased, it has shrunk by about 60%. Tax and regulatory changes can instantly cool down or heat up buyer activity.
The segment of used cars is more flexible, because the amplitude of choice is wider.
“Looking ahead to 2026, I expect three main trends to continue – financing will remain a key market driver, buyers will become even more demanding of transparency and total maintenance costs, and
the used car will become more and more established as a conscious decision rather than a forced one,”
says E. Cerps.
The threshold for a new car will remain high for a large part of society, but that is why the demand for quality selected and tested used cars will remain stable.
Opinion
Victor Eller, “KARVIK car dealership”:
The car market is unpredictable, last year was wave-like – from a great silence in the sale of used cars to such flashes when many cars were sold in one week.
This is related to both people’s caution and the fact that a car is not a commodity, the market was also affected by the war.
At the beginning, the Ukrainians had a great influence on the market, taking a lot of cars from European countries for the secondary market to Ukraine. Last year it was no longer so pronounced.
Hybrids are requested in connection with the reliefs in the transport operation tax.
Of course, people have a lot of questions about batteries – what happens when you buy a car with 200,000 miles on it.
The reference point for hybrids is still Toyota, which is head and shoulders above the rest, but European automakers are not sleeping either.
If once the market trends were dominated by station wagons with long backs, now SUVs with a raised seating position are more in demand.
They don’t always have to be all-wheel drive, but it’s easier to sell SUVs these days, parquet jeeps. A constant segment is seven-seater family cars.
There will be no major changes this year. People and also companies look at slightly used machines that still have a warranty. Looking for two to three year old cars with low mileage. This trend will become even more popular.
The electric car boom is over. People realize that it was an inflated bubble that burst.
Of course, some of them are relevant, but this year the mixed version will be more relevant – plug in a system where you can charge the car yourself, and an internal combustion engine.
The expected end of diesel was lobbying by electric car manufacturers. Both European and Japanese engineers are developing new internal combustion engines.
Germany’s leading companies are investing big money in the development of a new diesel engine. So it’s not history, everything will continue.
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