Some mixed news from the words of automobiles and government in Hungary. First the bad news. From various sources we see that AAA Auto, the big regional (and Budapest Stock Exchange-listed) used car dealer, has decided to “temporarily” halt its operations in Hungary, due to below-par performance of the unit. And the news is bad, because if they’ve decided the Hungarian economy is so screwed it’s not worth bothering to sell used cars here, then we’re really screwed. On the other hand, a related decision by the government suggests we may be not totally screwed.
From various other sources we hear that the Hungarian government has apparently decided not to launch a scheme to subsidize new car purchases, an idea had been earlier floated by trade associations, and which is apparently being followed in some other countries in Europe. Apparently the proposal was taken seriously enough that the numbers were run, but no matter how they were run, the state would end up losing money on the deal.
While it’s pretty lame that a goofball subsidy scheme like this would even be considered, it’s nice for once to see the government say no. Maybe if they keep at it some day soon the average Hungarian consumer will be able to afford a nice new used car.