Declining prices for used cars in Europe in the first half of 2024
In the first half of 2024, prices for used cars in Europe experienced a slight decline. This is confirmed by data from the AUTO1 Group price index, which tracks trends in the used car market. In June 2024, the index showed a moderate increase of 0.2% compared to May, but in annual terms (June 2023 - June 2024) there is a decrease of 9.2%. In general, in the first six months of the current year, the index decreased by 2.7%. It is important to note that used car prices remain 16.6% higher than in the pre-pandemic period.
Stability of Diesel Cars
It is especially worth noting the stability of prices for diesel cars. The study, which included a survey of more than 5,100 dealers, said prices were expected to drop over the course of the year. Despite some declines, the overall market is showing some stability, indicating healthy economic conditions for used car sales.
The situation in Ukraine
In Ukraine, there is also a decrease in the prices of used cars. This decrease is particularly noticeable in the domestic market, where the supply of cars with mileage significantly exceeds demand. At the same time, prices for imported cars remain relatively stable, due to high input prices and transportation costs. In addition, various economic factors, such as exchange rates and the cost of customs services, affect the final price of imported cars.
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Analysis of the AUTO1 Group Index
The AUTO1 Group index is an important indicator based on the analysis of more than 3.6 million sales of cars with mileage across Europe. This index is used to identify key trends in the used car market, helping dealers, buyers and analysts make informed decisions about buying or selling vehicles.
Influence of Economic Factors
The decline in used car prices in the first half of 2024 can be explained by several economic factors. First, the improved economic situation after the pandemic contributed to an increase in the number of new cars on the market, which reduced the demand for used cars. Second, high fuel prices force consumers to look for more economical options, often choosing newer models with better fuel efficiency.
Forecasts for the future
Dealers expect the downward trend in prices to continue in the second half of 2024, although the rate of decline may be less pronounced. Much will depend on the general economic situation in Europe, the state of the new car market and consumer preferences. Nevertheless, maintaining stability in the used car market is a positive signal for all participants in this market.
Conclusion
The first half of 2024 saw a slight decline in used car prices in Europe, which is in line with dealer expectations and general market trends. The stability of prices for diesel cars, the decrease in prices on the domestic market in Ukraine and the high level of prices compared to the pre-pandemic period demonstrate a difficult but balanced situation on the market. Downward price trends are expected to continue, but economic conditions may affect their intensity.
This situation opens up new opportunities for buyers looking for bargains in the used car market, as well as for dealers who can adapt their sales strategies to the new realities.
The information in this article was prepared with the support of our partners , the Institute of Car Market Research.