Used-car sales make quick recovery across Europe

Used-car sales in Germany and Austria, two of the first countries to exit total lockdown, are up to 90% and 80% of their pre-crisis volume, figures released by INDICATA show. “We see very positive trends, but they won’t necessarily transfer to other markets,” warns Andy Shields, INDICATA’s business unit director.

Remarketing intelligence specialist INDICATA has been studying the impact of the corona crisis on used-vehicle sales across Europe. 

First glimpse
With the first countries now out of total lockdown, the fourth edition of INDICATA’s Market Watch provides a first glimpse of the speed, size and nature of the recovery. 

And the signs are hopeful:

• Austria was the first country in Europe to ease restrictions on car dealership sales, on 14 April. Used-vehicle sales have since bounced back to 80% of pre-lockdown figures.
• In Germany, where restrictions were similarly eased on 20 April, the bounce-back was even more pronounced: to 90% of its March run rate.  
• Figures for countries which experienced partial lockdowns – such as the Netherlands and Sweden – were equally positive. Denmark even achieved 102% of pre-lockdown sales.

Sports cars
An interesting evolution picked up by INDICATA is that sports car sales are up by much more than average: at 110% of pre-crisis figures in Austria, and 130% in Germany. This is an indication that consumers are ‘treating’ themselves to vehicles, and more generally, that consumer confidence is fairly strong. 

However, Mr Shields warns against extrapolating the results from these markets to Europe in its entirety: “Germany and Austria are affluent countries with resilient economies and deep financial reserves,” he says, also noting that their lockdowns were shorter and shallower than elsewhere in Europe. 

Other markets
And indeed, INDICATA’s full report does not yet show a similar bounce-back for Europe’s other major used-vehicle markets, i.e. France, the UK, Spain and Italy. 

Two other interesting evolutions elaborated in the report: 

• The sinking popularity of used diesels, compensated by the rise in the sale of used petrol cars, but also EVs and hybrids. For example: in Poland, the swing from diesel to petrol was 9.8%. In Sweden, the volume of used hybrid and EV sales increased by 30%.
• Consumer impatience in markets officially still in lockdown. Dealers in smaller markets such as Poland, Portugal and Belgium have increasingly been selling used cars to consumers eager to get their hands on a used car. 

For more details, check out the full report here. 

Image: Shutterstock