We’ve read this month’s AutoFocus, so you don’t have to! Here are the key take-aways from the used car section that you need to know…
- The top five European markets registered 6.5 million fewer vehicles in 2020 and 2021 compared to the previous two years. Indications are that a further 1.1 million were lost in the first quarter of this year alone.
- Signs that the high levels of demand the industry has enjoyed for years are starting to dwindle.
- Economic factors and consumer confidence decline is likely to see a reduction in the number of units sold this year, resulting in a realignment in used vehicle values and prices in both wholesale and retail.
- Retailers face stiff competition for product from new competitors who have adjusted their stock profile during the pandemic.
- Daily rental companies who have turned to the used market to compensate for the lack of new vehicles joining their inventories will help to maintain prices at their current strong level in the short to medium term.
- While current pricing conditions remain, and stock supply remains low for many manufacturers, it’s more important than ever for retailers to have a clear understanding of the dynamics of supply at a model and derivative level.
Used car forecast – 2022 full year
- Upside scenario – 21 million used car transactions, a -4.2% decrease year-on-year, and -9.1% down when compared with the most recent pre-pandemic 2019 performance.
- Baseline scenario – 7.05 million used car transactions, a –6.4% decrease year-on-year, and -11.2% down when compared with the most recent pre-pandemic 2019 performance.
- Downside scenario – 6.90 million used car transactions, a –8.4% decrease year-on-year, and -13.0% down when compared with the most recent pre-pandemic 2019 performance.
To read the full report, click here: AutoFocus Issue 6: Used cars