Car prices in Bosnia and Herzegovina have risen sharply, driven by growing demand — particularly in the used car market — and prolonged delivery times for new vehicles. This trend is reshaping buyer behavior and putting pressure on the automotive sector across the country.
Smajo Borović recently decided to buy a new car but was faced with an unexpectedly long delivery time. In the meantime, he was given a replacement vehicle.
SMAJO BOROVIĆ, buyer
“I think this is mostly because we are generally a small market and car dealerships do not have the courage to increase the quota they have at the beginning of the year. Every new car that’s not foreseen comes from another market and is not intended for us, so delays are inevitable.”
Due to these extended delivery periods, many buyers are opting for cars already in stock.
SMAJO BOROVIĆ, buyer
“I’ve always preferred buying new cars, but the next time I make a purchase, I’ll definitely look for something that’s already available in the showroom.”
This shift in consumer preference is also affecting used car dealerships. At one such dealership, sales fluctuate greatly from month to month — ranging from just two or three vehicles sold, to over ten. Despite inconsistent sales, prices have remained firm.
EMIR SOKO, co-owner of a car dealership
“2024 was a record year for used car sales in Bosnia and Herzegovina. Out of about 100 to 101 thousand vehicles sold, around 88 thousand were used. So we don’t expect prices to drop significantly. In fact, with each new car order, prices are usually higher than the last.”
More than 80% of vehicles sold in Bosnia and Herzegovina in 2024 were used. This trend began during the early days of the COVID-19 pandemic, when global supply chain issues and component shortages slowed new vehicle production, prompting buyers to seek alternatives in the used market.
Now, looming EU regulations threaten to further influence local market conditions. New technical standards will gradually phase out older diesel vehicles, particularly those without DPF (diesel particulate filter) systems. This could cause market saturation and potentially lead to a drop in prices.
EMIR SOKO, co-owner of a car dealership
“If prices drop, it could help us. We’d pay less and offer more affordable options to customers. That would allow us to profit from higher turnover, but current price trends aren’t very promising.”
In total, 81,500 vehicles were imported to Bosnia and Herzegovina in 2024, valued at around 1.2 billion KM. Of those, just 8,233 were new, while 73,267 were used, according to data from the Indirect Taxation Administration of BiH.
As demand shows no signs of slowing, and supply continues to lag behind, the pressure on both buyers and dealers is likely to continue through 2025.
