Europe’s used car sales exceed pre-lockdown levels as demand outstrips supply
Europe’s used car market continued to recover in June, with sales rising above pre-lockdown levels and demand for greener cars showing a particular surge.
Sales in June were up 13.2% year-on-year according to Indicata’s latest Market Watch insights report, amid reports of depleted forecourts; the figures show dealer stocks were lower by 500,000 used cars across Europe when compared to the start of April.
Turkey (76.2%), Portugal (36.2%), Austria (34.9%), Italy (31.6%) and Denmark (31.6%) saw the biggest sales increase during June.
The shift towards buying greener cars continues; electric and hybrid used cars were up by 123% and 92% respectively, petrol cars by 16.9% and diesels by just 6%.
The data also suggests growing consumer conﬁdence is driving the market as well as pent-up demand; SUVs, sports cars and luxury cars are still the most popular models.
Prices have stabilised across all countries and in the case of UK have risen slightly. However, given the shortage of fresh supply, and shortage in stock on dealer forecourts, Indicata believes there are currently huge opportunities in the market for dealers to increase sales and profits and for vendors to capitalise on this.
Global business unit director, Andy Shields commented: “Wholesale prices are rising, and dealers are right to pay high prices for fast-moving stock which is just not coming to market quickly enough. However, we have been surprised by how slowly dealers are increasing prices on their own fast-moving stock which they are struggling to replace.
“At the same time there were radical changes in consumer behaviour post lockdown which means many models are no longer as popular as they were earlier in the year.”
In response, Shields said dealers should be using market data to identify slow-moving stock and price correctly. He also urged vendors to review their remarketing stock and portfolios based on the new market sales rates relative to stock levels by model.
“With many segments weaker as consumer purchasing trends change, focusing on accelerating the weaker stock now will pay dividends,” he stressed.