Europe’s used-car market up 10% in August
Europe’s used-car market grew by 10.3% in August (year-on-year), INDICATA reports. Twelve of its 13 markets experienced growth – the UK was the only exception. However, a slowdown may be just around the corner.
The market’s healthy growth confirms a Europe-wide trend: demand for used cars outstrips supply. That explains why used-car pricing remains strong and continues to increase across most markets, wholesale prices are rising and conversion rates are high.
Some highlights from INDICATA’s market overview:
- The biggest growth was reported in Turkey (+41.7%), Portugal (+39%) and Italy (+33.1%). The only market that contracted in August was the UK (-3.3%).
- In particularly short supply are used cars less than a year old. This is due in large part to the continued disruption to OEM self-registration and demonstration-vehicle schemes, still catching up from various COVID-19 lockdowns.
- Dealers are short on used cars, especially in Poland and Portugal (-11%). Stock rose most in the UK and Turkey (both +3%). However, as wholesale prices remain high, dealers are increasingly cautious in their buying habits.
Taking that caution into account, as well as potential new lockdowns due to resurgent COVID-19 infection rates, INDICATA’s global business unit director Andy Shields warns that a slowdown of the European used-car market may be around the corner in September and Q4.
“Dealers are becoming more cautious with stocking following rises in infection rates, however, there are still healthy profits to be found from fast-moving stock,” Mr Shields says. “However, dealers should be keeping a close eye on pricing and stocking days to ensure they aren’t left with slow-moving stock should prices and demand swiftly fall.”
Join Fleet Europe and CARA on 23 September for the fourth and final session of the Car Remarketing Expert Track: a webinar on the future of the used-car market.