In recent years, imports of US cars into Europe and especially the Baltic countries have become very popular, as buyers have found here the opportunity to pick up cars in good condition at competitive prices. However, the dynamics of this business are global and any changes on the other side of the world could have a significant impact on prices. One of the latest proposals in Georgian policy may be a decisive factor that will eventually reduce the purchase price of a car at auctions.

Georgia’s proposal to ban car imports for cars older than 6 years

A draft law has been submitted to the Georgian Parliament to ban the import of used cars older than 6 years. This initiative is intended to reduce pollution and improve the ecology of transport, but its consequences could soon extend far beyond Georgia.

Georgia is currently one of the most important markets where the demand for used cars is growing strongly – especially those imported from the US. This high demand keeps the price level at auctions high. If this planned ban were to come into force, it would mean:

• the significantly reduced level of demand on the Georgian market,
• less competition for used cars in US auctions,
• a larger supply of cars would remain available for European buyers.

Why would this be beneficial for Baltic buyers?

The international market, in which Georgia has a significant presence, is currently a major market for people and businesses buying used cars from the US. The high prices at auction are often the result of strong demand from Georgia. However, if this demand decreases:

🔹 Auction prices may fall

As Georgian buying activity decreases, competition for the same car will decrease – which directly leads to lower completion prices at auctions.

🔹 Increased opportunity for buyers from Lithuania, Latvia and Estonia

With less competition, Baltic buyers will have a better chance to find cars that better suit their budget and needs – without having to compete with high demand buyers.

🔹 Accelerating supply in Europe

Dealers will start sending some of the cars previously destined for Georgia to Europe, which will increase the supply at local auctions and warehouses.

What does this mean in practice?

If the Georgian draft law is adopted and enters into force:

📌 Restrictions on imports into Georgia would start to apply

📌 US car demand would decline

📌 Auction prices in the US could fall

📌 Increase supply in Europe and the Baltic States

📌 Better options and lower final prices for buyers

Important to know

This is only a proposal / draft law – it has not yet been put into practice. However, the very publicity of this proposal has already had an impact on the market and demand. If the draft is approved in Parliament, real changes in the price structure could already be in the coming years.

Conclusions: what shoppers should know now

✔ Georgia’s proposal could eventually make cars cheaper at auction.

✔ Declining demand can mean lower final auction prices.

✔ For Baltic buyers, this can be a competitive advantage.

✔ It is important to keep up to date with news about the law coming into force.