INDICATA’s pricing and insights data will continue to tracking the European used car market to help buyers and vendors during 2022
Written by Autorola in category Autorola Group News
December 20, 2021
During 2021 the attention switched from Covid-19’s reducing impact on the used market to the global shortage of semiconductors which has dramatically restricted new car supplies.
Record used demand and prices
This shortage of new cars has switched buyers’ attention to used cars thus creating record demand and prices in most countries, a trend that will continue some predict into late 2022/early 2023.
The leasing industry started by extending contracts from 2020 to 2021 as new car orders were delayed by many months. Many contracts are now being extended again from 2021 to 2022 which has meant the volume of three-and four-year old used cars coming into the market has dramatically fallen.
Ageing leasing industry car parc
And when these contracts do finally expire the leasing industry will be faced with selling tens of thousands of used cars far older than their normal mix which will be a new experience for them.
Meanwhile, the lack of new car sales has impacted franchised dealers with a shortage of part exchanges reaching the used market. Our experience is that dealers are keeping the majority of their part exchanges to put them back onto their retail forecourts which is further contributing to the shortage in the open trade market.
Helping dealers convert online leads
Our Lead Generator online evaluation tool continues to play a vital role in helping dealers convert the growing number of online leads into sales. The website plug in is empowering drivers to value their part exchange car while they are searching online for their next car which creates a healthy trading environment for the dealer.
The rental industry continues to work with OEMS to extend their buy back vehicles beyond the typical 6-12 months which is further restricting supplies of nearly new used cars coming back into franchised dealers. Rental companies are buying used cars from auctions to keep their fleets at optimum working levels which is adding to the increased demand and high prices we are likely to see for at least another year.
More EVs coming into the market
OEMS are using this current new car supply challenge to focus on feeding more EVs into the markets at the expense of petrol and diesel cars. This fits in with their continued strategy to combat the Clean Air For Europe (CAFE) fines, where 95% of a vehicle manufacturer’s fleet needed to emit below 95g/km CO2.
In November and December our Market Watch report has identified how EV sales are rising while stocking days are coming down as an increasing number of consumers look to buy zero emission used cars for the first time. Within just two months the market has swallowed up the stocks of used cars in the market and now they are in short supply which should keep prices very healthy.
INDICATA continues to roll out new features
So, in 2022 the changing dynamics of the used market will be led by how quickly semiconductor production starts to feed into OEMs building more new cars. The INDICATA team continues to develop its products and services to meet its customer’s ever-changing needs and we promise wider and broader data provision, more forecasting functionality while our series of user guides have been rolled out to provide greater training resources including videos for our customers.