Through the first seven months of the 2014 calendar year, Iceland has almost matched the 7,300 new vehicles that were sold during the entirety of 2013. With 7,120 new vehicles registered through July, Iceland is sure to pass up last years total by a significant amount. Year-over-year the increase is currently around 30%, however, August has the potential to increase that percentage if car sales continue to rise.
The significant increase in new car sales can be attributed to a couple key factors. First, the Icelandic economy has continued to bounce back from the recession and the average Icelander now has more disposable income to spend on a new motor vehicle. Second, the sales of commercial vehicles used as rental cars have increased year-over-year. This is a result of the tourist industry creating a growing demand for rental cars during the summer months when numerous foreigners take their summer vacations in Iceland.
While the year-over-year comparison's look favorable, it is also interesting to analyze new car sales over the past seven years, looking only at the July numbers. The graph below really tells the story of Iceland's false prosperity during the banking boom, the recession after the collapse and now the return back to economic stability. This July there were 743 newly registered passenger cars, in comparison to the 1,486 sold in 2007, just before the crash. You can see the decline and gradual ascendance back to the current figure of 743, which helps tell the story of Iceland's economic improvement.
Through the first seven months of the 2014 calendar year, Iceland has almost matched the 7,300 new vehicles that were sold during the entirety of 2013. With 7,120 new vehicles registered through July, Iceland is sure to pass up last years total by a significant amount. Year-over-year the increase is currently around 30%, however, August has the potential to increase that percentage if car sales continue to rise.
The significant increase in new car sales can be attributed to a couple key factors. First, the Icelandic economy has continued to bounce back from the recession and the average Icelander now has more disposable income to spend on a new motor vehicle. Second, the sales of commercial vehicles used as rental cars have increased year-over-year. This is a result of the tourist industry creating a growing demand for rental cars during the summer months when numerous foreigners take their summer vacations in Iceland.
While the year-over-year comparison's look favorable, it is also interesting to analyze new car sales over the past seven years, looking only at the July numbers. The graph below really tells the story of Iceland's false prosperity during the banking boom, the recession after the collapse and now the return back to economic stability. This July there were 743 newly registered passenger cars, in comparison to the 1,486 sold in 2007, just before the crash. You can see the decline and gradual ascendance back to the current figure of 743, which helps tell the story of Iceland's economic improvement.
