INDICATA report sees European used car sales fall in January as dealers face pricing volatility
Our INDICATA Market Watch insights report identified used car sales in Europe had fallen by 16.4% in January 2021 compared with January 2020.
Many of the 13 countries featured in the INDICATA report suffered Covid-19 lockdowns of some kind which compromised used sales, with the UK, Germany, Denmark, and Turkey the worse hit with sales down by 40.4%, 17.5%, 22.7% and 25.1% respectively.
BEVs are now in oversupply with prices starting to fall
The buying habits of consumers meanwhile continue to move towards low or zero emission used cars. Year-on-year sales of Battery Electric Vehicles (BEVs) and hybrids continued to grow, although BEVs are now in oversupply and stock turn has been struggling and prices have started to fall.
A strong end to 2020 helped dealers and traders clear out some stock, but weak January sales resulted in markets entering February 2021 with 10% or more cars in stock than a year earlier.
Supply shortages were most severe in Poland with used car sales eating into dealer stock resulting in a 11.1% drop at the start of February compared with a month earlier and a 15.8% decline compared to a year earlier.
Dealers are facing pricing challenges
With some country’s lockdown restrictions likely to be in place until at least May or until vaccination levels increase, dealers are having to balance reducing prices on stock for a quick sale with keeping their in-demand cars back until the market returns to some form of normality. For many dealers that job will be easier with INDICATA helping decide which cars to keep and which ones to sell.
“Andy Shields, INDICATA global business unit director said: “While we have seen sales fall in January, many countries are still busy selling used cars online to accommodate lockdown restrictions. It shows just how resilient the used car industry is.
“There is a growing volatility in the market pricing with some models rising and others falling. Dealers and remarketers need to keep a close eye model-by-model on market conditions to ensure their stock is priced correctly to avoid losing sales,” he added.
To download the full 20-page 13 country report go to www.indicata.com/corona
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