European used car prices continue to rise as market remains starved of stock reports INDICATA
European used car prices rose dramatically in the first two months of 2022 as the used market continues to be starved of stock according to INDICATA’s latest used car insights report.
Average used car prices have increased by an average of 7.1% since the end of last year across the 13 European countries as they continue to suffer from a shortage of used stock due to new car sales compromised by global semiconductor shortages.
Majority of markets experience used car price rises
Since December 2021 Italy, Austria, Belgium, and Germany all saw price increases by more than 7 percentage points going into March 2022 equivalent to between a 6.3% and a 7.2% increase. Turkey average used car prices rose by 18.6% between December 2021 and January 2022 with foreign currency exchange rates and supply challenges driving much of that uplift. Average prices have dropped by 3.2% over the subsequent two months.
Meanwhile the United Kingdom has seen average prices fall 1.1% between the peak in January and March with trade buyers and retailers showing little appetite to push up prices. However, they are still 33.2% higher than back in May 2021 when prices started to rise.
Used demand exceeds supply
All countries are operating in a market where used car demand exceeds supply and this looks likely to remain unchanged as restricted new car availability forces leasing companies to extend contracts and lead times impact on dealers delivering new cars to retail customers.
Dealer stock levels fell by between 4.2% (France) and 39.9% (Poland) year-on-year and in February sales were 4.4% lower than January. All thirteen countries in the report saw February YTD sales fall by 0.9%.
Dealer stock levels fall
Moving from February into March dealer stock levels showed few signs of improving with markets like Portugal and Poland suffering from a 7.2% and 6.3% fall.
Meanwhile, used Battery Electric Vehicles continue to grow in popularity with stock turn getting closer to petrol and diesel although there is still some way to go. Diesel stock turn was the highest in February.
‘High prices will continue’
“The high prices will continue to show no signs of abating until the new car production issues are resolved,” explained Andy Shields, INDICATA’s global business unit director.
“We are seeing some mainland European markets looking to import and export used cars to balance their needs but not in big enough volumes to resolve supply issues. The market continues to experience unprecedented issues and looks very unlikely to return back to normal until well into 2023,” he added.
For a free copy of the latest INDICATA Market Watch report go to www.indicata.com