Covid-19 fuels used car pandemic in November as sales fall 15.6% year-on-year reports INDICATA
Covid-19 lockdowns, trading restrictions and circuit breakers created havoc within Europe’s used car industry sales in November according to INDICATA’s latest Market Watch insights report.
November reported a 15.6% fall in sales against the same period in 2019. Out of the 13 countries covered by the report only three, Germany, Italy and Portugal saw used car sales growth of 7.7%, 2.1% and 9.6% respectively with the remaining 10 all reporting a fall in sales. France, Turkey, and Poland were worst hit reporting a dramatic 40.1%, 34.5% and 28.9% fall.
Markets shut down just as new stock is arriving
This comes at a time when dealer supply finally improved in many markets during November following months of used car stock shortages.
That compares with the 12.5% average year-on-year sales increase INDICATA reported in October showing how dramatic the peaks and troughs have been for Europe’s used car industry during 2020.
Dealers are sitting on used stock bought at the height of the market
Dealers in Spain, France, and the UK in particular are now sitting on stock levels above where they were in June, much of which was purchased at higher prices in late Autumn and early Winter. Consequently, used car managers and remarketing professionals will have to plan their pricing strategies very carefully in the coming months, according to INDICATA’s global director Andy Shields.
He said: “The time that all vehicles sold regardless of their desirability, age and mileage has now gone and reviewing a vehicles market attractiveness with a data driven approach and pricing on a daily basis is vital to entering 2021 in as strong a position as possible.
Dealers need to fine tune prices during December
“Managing stock supply in a month that is seasonally very quiet involves dealers fine tuning price by gauging the demand of stock within their geographical area. That means reducing prices on the stock that they know is aging or less attractive and holding price of the cars they know are in demand and short supply locally. It involves a very steady hand on the tiller for the next couple of months,” he added.
In November diesel and petrol sales were down while hybrids and EVs increased year-on-year but overall stock turn on the low or zero emission vehicles has been challenged by an oversupply and high prices.
Download the report here.
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