Sales of used cars strengthen across most major markets
October 11, 2018
The latest data from Indicata shows that despite the drop in new car sales in September the used car market remains strong, with sales rising in the UK, France and Italy after the traditional lull in sales during the holiday period.
In the chart adjacent shows the traditional fall in sales in July and August in Germany, France and Italy as consumers look to spend their money on holidays rather than considering buying a replacement car.
German used car sales reverse in Germany
Whilst used car sales in Germany went into reverse in September, falling by around 4% this is partly due to the rush to change cars in the run up to WLTP and sales are not expected to fall any sharper than one would expect in the run up to the festive period and the year end. However, it should be noted that the Indicata Germany specific market report does show used car sales volumes marginally down in August and September 2018 over the same months in 2017.
Spain is showing minimal movement in volumes throughout the period, but this is in line with how the market has recovered from being one of the worst hit during the economic crisis. It is also a market where a lot of used vehicles are exported, and this helps balance the supply and demand equation.
UK has its own used car micro climate
Even though WLTP has been introduced across Europe from the 1st September the UK, being the only major right-hand-drive (RHD) market, means it has its own micro-climate for cars. This is because exports into the other four RHD markets of Ireland, Malta and Cyprus are limited by their market sizes. The result of this saw the usual seasonality in used car sales being distorted by the rush to register new cars in the run up to September, and with it the need to sell used cars to free up dealer stocking plans.
Whilst not visible from the chart the underlying data from Indicata also demonstrates the impact the “war on diesel” has had on used car sales in some of the markets. For example, in Germany in October 2017 petrol used cars were already 54% of the 425,00 used car sales identified in the month, but by September 2018 petrol now accounts for 60% of all used car sales according to Indicata.
Diesel demonisation impacts UK market
The UK has also been impacted by diesel demonisation, with used petrol car sales moving away from a parity in volume terms with diesel from October 2017 through to March 2018 where it is now 6% higher than diesel cars in volume terms.
Used diesel cars continue to outsell petrol in France, Spain and Italy but this is a legacy issue due to the previously higher volume of new diesel cars being bought and the longer average retention periods by consumers. Looking ahead the situation is expected to follow what we are already seeing in Germany, and the UK as buyers move away from diesel due to the change in the supply mix coming from the new car market.
In the chart adjacent shows the traditional fall in sales in July and August in Germany, France and Italy as consumers look to spend their money on holidays rather than considering buying a replacement car.
German used car sales reverse in Germany
Whilst used car sales in Germany went into reverse in September, falling by around 4% this is partly due to the rush to change cars in the run up to WLTP and sales are not expected to fall any sharper than one would expect in the run up to the festive period and the year end. However, it should be noted that the Indicata Germany specific market report does show used car sales volumes marginally down in August and September 2018 over the same months in 2017.
Spain is showing minimal movement in volumes throughout the period, but this is in line with how the market has recovered from being one of the worst hit during the economic crisis. It is also a market where a lot of used vehicles are exported, and this helps balance the supply and demand equation.
UK has its own used car micro climate
Even though WLTP has been introduced across Europe from the 1st September the UK, being the only major right-hand-drive (RHD) market, means it has its own micro-climate for cars. This is because exports into the other four RHD markets of Ireland, Malta and Cyprus are limited by their market sizes. The result of this saw the usual seasonality in used car sales being distorted by the rush to register new cars in the run up to September, and with it the need to sell used cars to free up dealer stocking plans.
Whilst not visible from the chart the underlying data from Indicata also demonstrates the impact the “war on diesel” has had on used car sales in some of the markets. For example, in Germany in October 2017 petrol used cars were already 54% of the 425,00 used car sales identified in the month, but by September 2018 petrol now accounts for 60% of all used car sales according to Indicata.
Diesel demonisation impacts UK market
The UK has also been impacted by diesel demonisation, with used petrol car sales moving away from a parity in volume terms with diesel from October 2017 through to March 2018 where it is now 6% higher than diesel cars in volume terms.
Used diesel cars continue to outsell petrol in France, Spain and Italy but this is a legacy issue due to the previously higher volume of new diesel cars being bought and the longer average retention periods by consumers. Looking ahead the situation is expected to follow what we are already seeing in Germany, and the UK as buyers move away from diesel due to the change in the supply mix coming from the new car market.
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