Sales of used imports outpaced new car sales in 2006, building on a trend that began in 2005. Czechs bought a record 183,000 imports last year, nearly 10,000 more than new car sales.

"This is the highest number of used cars ever imported over one year," said Pavel Tunkl, secretary of the Union of Car Importers (SDA). Only 127,000 foreign used cars were sold in 2005.

The European Union pressured the Czech government to liberalize its trade policies last July, and forced it to cancel all barriers against used imported cars. That was a crucial factor for the marked increase in 2006, Tunkl said.

The change lifted a ban that prevented cars more than 8 years old from being imported and sold.

"Today, almost any car can be imported," Tunkl said. To prove his point, he cited the Trabant — a tiny car manufactured in East Germany until the mid-1980s. The Czech Republic banned imports of the car's smoky two-stroke engine due to environmental concerns. But, in the past six months, 10 Trabants have been brought into the country.

The influx of old cars does not please a lot of dealers.

Used car dealers have struggled to sell their newer, but significantly more expensive, stock.

New car manufacturers, meanwhile, have repeatedly expressed their concern that the Czech Republic could soon become the virtual scrap yard of Europe. They also point to the increasing age of cars running on Czech roads.

"While the average age of cars in Western Europe is about 10 years, cars driven here are almost 14 years old on average," said Antonín Šípek, director of the Automobile Industries Association.

Availability factor

But some automobile industry experts, such as Aleš Novák, fleet manager at Porsche Inter Auto CZ car dealer, are not so skeptical.

"Increasing car imports certainly takes a bigger bite from the new car market's pie, but they also make proven foreign brands accessible to more people," he said.

Novák insisted it is better to import older foreign cars than to run old and low-quality Czech cars.

"It's 1,000 times better to drive a 7-year-old foreign car than an old Czech car," Novák said. European car brands and American Fords are among the most popular imported used cars. A vast majority of used vehicles imported are passenger cars, according to the SDA.

The new value-added tax (VAT) provision that came into force last spring enabled VAT refunds on light commercial vehicles and prompted businesspeople to purchase new vehicles rather than to buy used cars.

More on the way

Rising oil prices will increase the demand for cheap used car imports, according to a KPMG study on the auto industry released Jan. 11.

Nevertheless, Škoda will continue to dominate the Czech market as long as it continues to offer its high quality at reasonable prices, said Andrew Sutherland, a partner at KPMG's Prague office responsible for automotive industries.

Last year, Škoda sold 51,833 new passenger cars here — more than three times as many as the second- and third-place sellers combined.

But the recent spike in used car imports shows that Škoda can't rely on patriotism to help its domestic sales, Sutherland said.

Novák said he expects Czech-made used cars to be exported east as demand for cars increases on other markets.

"Following EU expansion, it is likely that an influx of used cars will be seen in both Romania and Bulgaria," he said, "and we're closer to them than Western states."