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2024 Update Coming Soon Published- Nov 2022 Number Of Pages -111 Updates for 2024 coming soon
With the pandemic influencing the fundamental lifestyle and buyable range of diverse customers in terms of automotive sales, used cars have been increasingly important in recent years.
Used vehicles are more desired by new or first-time buyers of automobiles in various parts of the world because they assist instil the necessary user driveable experience, which has a beneficial influence on a long-term use time frame.
The emergence of the Internet has altered the power struggle between dealers and consumers in terms of needs towards the European Nations’ Used Car Segment.
Buyers may now have a competitive advantage. Customers are becoming more aware about automobiles, including their quality, residual value, pricing applied, finance costs, availability, and, more and more frequently, the actual profit margin that the dealer makes when closing a purchase.
The value of the used automobile market is increasing dramatically. The key to growth has been information transparency and symmetry, as buyers continue to employ the same technique to research and information collecting in their search for used automobiles as they do in the new car purchase process.
The establishment of trust-inducing initiatives such as certified used vehicle programmes is the most essential success strategy in the used automobile market.
These programmes offer the best protection against channel competition and enable dealers to dramatically boost margins while providing a new source of revenue for OEMs.
To know more about Global Used Cars Market, read our report
The used automobile marketplace automobile’n’Roll has launched in Spain thanks to collaboration between BankInter Consumer Finance, insurance provider Lnea Direct, and technology firm Vass.
automobile’n’Roll gives customers the option to finance and insure a used automobile without ever leaving the website, in addition to letting them purchase the car entirely online before having it delivered to them. All vehicles offered by Car’n’Roll undergo 100 inspections and include a 12-month guarantee. Additionally, the customer has 30 days to return the vehicle for a complete refund.
AutoScout24, a leading online car marketplace, has launched a new service called “AutoScout24 Certified.” This service offers a selection of used cars that have been inspected and certified by AutoScout24. Certified cars come with a warranty and a money-back guarantee.
Developments like the mentioned ones will improve the trust, and accessibility of customers to purchase used cars as there are guarantees, financing, warranty etc. which will improve the ability of the customer to choose a used car
The used car market in Europe is a large and growing market, and is expected to continue to grow in the coming years, driven by a number of factors, including rising incomes, increasing urbanization, growing demand for electric vehicles, the rise of online car buying and selling, and the growing demand for subscription-based car ownership.
The market is also growing due to the increasing popularity of SUVs, the growing demand for luxury used cars, the increasing acceptance of used electric vehicles, and the growing popularity of car sharing. The demand for luxury used cars is growing in Europe because consumers are looking for affordable ways to experience the luxury lifestyle.
Luxury used cars are often significantly cheaper than new luxury cars, but they still offer a high level of quality and performance. Car sharing is a new business model that is gaining popularity in Europe.
Car sharing allows consumers to rent a car for a short period of time, which can be a more convenient and affordable option than owning a car. The growing popularity of car sharing is expected to lead to a decrease in the demand for used cars in the coming years.
The used vehicle market encompasses all private and remarketed sales of used automobiles. Private sales are ones in which both the buyer and seller are private persons. Remarketing is the sale of automobiles by businesses that have previously utilized them for business or to create money. Manufacturers, rental and leasing businesses, and others all dispose of used automobiles through remarketing sales.
The European Union nations, France, and the United Kingdom are among the world’s largest used automobile markets. The used automobile sector creates significant economic income in various markets. In comparison, the used automobile market in Canada, Japan, and Spain is weaker.
Dealers throughout Europe have witnessed significant rates of consolidation, owing partly to the Block Exemption Act, which went into force in 2002. According to sources, the number of franchised dealer sales outlets in France has decreased by around 17 percent, while the number of outlets in Germany has decreased by about 18 percent.
With more knowledgeable platforms and outreach, the market share of independents is likely to fall in Europe because leaders are increasingly looking for other channels to remarket their vehicles, such as auctions (ex: Germany, Holland), dealers, export, and re-rental, with Italy and other Eurozone nations serving as examples.
The auction on platforms of various levels has been the other primary target of growth for used automobiles inside the industry. Used vehicle auctions are mostly established in England, which was a member of the European Union until January 2021, and to a lesser extent in Germany and Holland, with other nations catching up.
However, players such as Manheim and BCA have devised ambitious expansion plans throughout Europe. Leasers are increasingly viewing auctions as a remarketing route at the expense of independents. Online auctions are becoming more popular.
Buying a used electric car has a number of advantages, not the least of which is cost savings. Buying a used EV is becoming more common, with roughly 20% of the value of a new car being lost the instant you drive it away. In the United Kingdom, roughly three used automobiles are sold for every new vehicle.
However, there are numerous more benefits in addition to financial and environmental savings. Factory warranties are longer than ever these days, so longevity is better than it has been in the past. It’s also feasible to find a high-spec used electric vehicle. The environmental advantages of electric vehicles are very compelling. While walking, cycling, and taking public transportation are always better for the environment, buying used and switching to electric is still an excellent option.
When compared to gasoline or diesel cars, EVs emit extremely less pollutants into the air. Particles are still released by tyre wear and braking, but there are no nitrogen oxide emissions because there is no tailpipe.
Battery packs are also surviving much longer, making buying used a safe option. The battery in an electric automobile won’t need to be replaced for 10 to 20 years, and it can go roughly 150,000 miles during that period. With an increase in new electric car sales, there will surely be an increase in used vehicle sales, fueled by the gasoline crisis and the prohibition of fossil-fuel models.
Driverama is well-positioned to grow quickly thanks to its own technology, distinctive data science, and current automotive infrastructure. The technology will soon make it possible for users to purchase or sell cars anywhere in Europe while utilizing real-time data and price variations to negotiate the best deal.
For the first time, a buyer in Munich, for example, can purchase a car in Amsterdam and have it delivered to them in Germany, backed by a no-questions-asked guarantee. fourteen-day money-back promise
In an effort to counter the rising popularity of online vendors like Cazoo and Cinch, Stellantis has introduced its Spoticar used car service in the UK. After the brand’s inception in France, the UK marks Spoticar’s tenth European market launch. There will be vehicles on the website that are not made by Stellantis.
Following the acquisition of Cluno, Germany’s top automobile subscription service, in February, Cazoo, one of Europe’s top online auto sellers, revealed that it has begun offering its used car marketplace in both France and Germany.
In the two European nations, the U.K.-based company already has “hundreds of automobiles” available, each of which includes a 12-month guarantee. Buyers will also receive free vehicle delivery to their front doors, backed by a seven-day money-back guarantee, as an extra bonus.
Aramis Group SA and Cazoo Holdings Limited have reached an agreement for Aramis Group to acquire 100% of the capital and voting rights of Cazoo Trading Italy S.p.A., which will be rebranded to brumbrum with immediate effect, as part of Cazoo Group Ltd’s strategic review of its European business.
The business sells about 1,600 used cars B2C each year, generating about €30 million in revenue. With this transaction, Cazoo has the chance to quickly exit the Italian market in accordance with its previously announced plans to leave mainland Europe, advancing its goal of becoming profitable without the need for additional outside funding.
Aramis has an excellent opportunity to enter, at favourable financial terms, a strategic market in continental Europe that transacts 20 billion euros annually and where Stellantis, the majority shareholder of Aramis Group, has a significant presence.
Europe is now world`s second biggest EV market with more than 5M EVs sold over past 5-6 yrs. These cars will start making their way into the used car market by 2024-2025 and by 2027, about XX% of used car market will be occupied with EVs.
Electrical Vehicle Supply Equipment& Installation (EVSE)
Transaction Type
Region Wise
POLAND
• In 2021, approx XX Million cars were imported
In Poland About 42% of used cars sold in Poland were imported from Germany and about 44% of them were more than 10 Years old. Volkswagen, Opel and Ford accounted for -31% of used car brands imported in the country. As of 2022, the majority of the used cars coming to Poland are still private imports bought at an average price of under €5,000. Many of the imported cars have more than 60K miles on the odometer, without concrete paperwork and often in poor shape and hence lower transaction prices.
ROMANIA
During 2016-2022 – The share of cars at prices below EURO 3000, has dropped, whereas the share of cars at prices above EUR 15000, have gone up. Greek technology platform for used cars Spotawheel entered Romania in 2021 and established the Romanian branch – Autosp Rom at the beginning of November 2021
As of May 2022, Spotawheel is competing with Autovit, for developing a marketplace starting from being the online extension of the physical used car market in Bucharest.
SLOVAKIA
The used car policy in Slovakia is conductive for lower taxation on older vehicles and as a result the average age on used cars sold in the country is among the highest in Europe. In 2021, 62k used cars were imported in the country, Over the past 2 years, the average ticket size per car has risen by around 11-14% in the last year, in the under three year segment the increase is over 20% .
To know more about UK Used Car Market, read our report
The used car industry has risen in size and significance over the last decade and is expected to do so in the future. A successful used car strategy by manufacturers and dealers is becoming increasingly important to their businesses and is increasingly acknowledged as such.
New and used car sales are inextricably linked; used sales influence residual values and new vehicle price, as well as customer connections and brand strength. In summary, used car sales have a huge impact on many areas of an automaker’s sales and should not be overlooked.
There have been some core strategies being implemented that are essential for growing dealers’ used vehicle sales in the European Market in the recent years which includes Enhance the customer experience from the Internet to the showroom on a continuous basis, rationalize client relationships through CRM, perfect online promotion and merchandising efforts to reach opportunities and existing clients, manage inventory and pricing with network-wide IT solutions, maximize high-margin sales opportunities, and optimize certified used vehicle programmes.
In European markets, successful used vehicle dealers and manufacturers make deliberate investments in technology to improve customer experiences and establish trust, which forms the foundation of their capacity to compete with lower-priced independent dealers and private sellers.
To get a clearer idea of the whole market operability in terms of higher sales in European markets, the recent integration of technology must be followed by the integration of a branded OEM Dealership. The emphasis has been on incorporating this value-added service into the Union’s used automobile market.
Customers in cities would be more inclined to use OEM-affiliated branded dealerships. The online portals had no discernible market share. Customers appear to have sought information on the internet but completed the sale in a real dealership.
It should also be noted that when incorporated directly into a non-branded platform dealership, the identification of a consumer who transacted in a conventional dealership rather than a web portal is significantly lower. As a result, it is possible that there is some prejudice against purchasers on the internet.
Many European automakers have started offering certified pre-owned programs, which give customers peace of mind when buying a used automobile. These programs frequently come with thorough inspections, increased guarantees, and extra advantages. In order to make sure that the used automobiles satisfy high standards, the inspections frequently comprise detailed examinations of mechanical components, aesthetic appeal, and vehicle history data.
Digital vehicle history records: These studies have grown to be a crucial component of the used-car purchasing process. Detail reports with information on past owners, accident history, mileage verification, and maintenance records are offered by businesses like Carfax and AutoCheck. These reports ensure openness and give customers a thorough grasp of the history of the car, assisting them in making educated selections.
Online marketplaces and vehicle listing platforms: A number of online marketplaces and listing platforms for vehicles have appeared in Europe, making it simpler for purchasers to locate and contrast used cars. Users may access a broad selection of used automobiles with extensive descriptions, images, and pricing information by searching for specific brands, models, and locations on websites like AutoScout24, mobile.de, and CarGurus. For extra convenience, these platforms frequently provide user reviews and ratings.
Services for Independent Vehicle Inspection and Certification: Independent vehicle inspection and certification services are becoming more and more well-liked in Europe.
Comprehensive inspection services for secondhand cars are provided by businesses like DEKRA and TÜV SÜD, including mechanical and safety inspections. These inspections give customers a frank assessment of the car’s state, emphasizing any prospective difficulties or undiscovered flaws.
Automotive professionals and dealerships increasingly employ advanced diagnostic tools and vehicle scanning equipment to better properly evaluate the condition of pre-owned vehicles.
These instruments can spot potential mechanical or electronic problems, giving purchasers a clearer idea of the condition of the vehicle overall and assuring a more dependable purchase.
Telematics and connectivity: Some used automobiles in Europe come with cutting-edge telematics and connectivity technologies. These systems make it possible to track, monitor, and diagnose vehicles from a distance.
The performance, location, and maintenance requirements of the vehicle may all be accessed in real-time by buyers, increasing ease and transparency.
The Europe used cars market size is estimated to be €XX Billion and is expected to be €XX Billion in 2030, at a CAGR of XX% from 2024 to 2030 in terms of value. Gasoline cars have been able to better retain their residual value compared to Gasoline, HEV and BEV cars for comparable age groups
Leading vendors like Autorola have been working with more vendors to develop pan-European remarketing strategies to accommodate the cross-border exchange of used vehicles since 2018.
Retail revenue has been the primary growth driver for many used car retailers followed by wholesale and other revenue streams. Online engagement followed by excellent consumers offline experience is the most commonly followed go to market strategy by leading used car retailers in Europe and is likely to continue in future as well.
Used car financing companies are offering innovative solutions to meet the growing demand for used car financing. For example, some companies are offering no-interest financing options and others are offering longer repayment terms.
The demand for used electric vehicles is growing rapidly in Europe. This is due to a number of factors, including the rising cost of new electric vehicles and the growing availability of used electric vehicles.
Used car companies are investing in charging infrastructure to meet the growing demand for used electric vehicles. For example, some companies are installing charging stations at their dealerships and others are partnering with charging infrastructure providers.
Due to a shortage of processors and other components, Mercedes-Benz AG and Volkswagen AG have had to cut back on manufacturing, and the lack of new cars is trickling down the market, putting even more pressure on consumers already dealing with high inflation.
Used car prices in Germany — The largest vehicle market in Europe increased. Due to a scarcity of vehicles, secondhand car prices in Germany have reached new highs.
Despite production snarls, supply-chain concerns have upended decades of automobile economics, with manufacturers reaping large profits. The key to success is growing prices. The increase in used vehicles also helps by improving the value of leased cars.
The crisis in Ukraine is putting additional strain on supply networks, with automobile manufacturing forecast to remain below pre-pandemic levels this year.
As the epidemic puts a strain on the supply of chips for new vehicles, used-car vendors in the UK are seeing a surge in demand.
The rising demand for old vehicles demonstrates how the COVID-19 crisis is affecting consumer behaviours around the world due to supply-chain shortages of essential components like as processors. And this is a boon to people who are getting rid of old autos.
Because there are so few new cars being built and delivered, there is a big shortage of new-car stock, which is driving a lot of demand into the used-car market.
According to Motorway, the Vauxhall Agila and Ford Focus, as well as the Aston Martin Vanquish, were the best-selling cars, followed by the Volkswagen Eos. Tesla’s Model S followed several other models in price increases during the past year, reaching 14 percent.
During the global semiconductor shortage, demand for used cars in Europe is surging. Car costs in Denmark have risen in the recent year. People are more interested in buying newer used cars because there are such long lines for new autos. This also signifies that the used car mark has nearly been cleared.
The recent surge in used vehicle sales is the result of extraordinary demand caused by long delivery delays for new cars. Due to a lack of semiconductor chips, manufacturers are unable to produce the latest models rapidly enough, with some vehicle companies citing year-long wait times for specific models.
The increased speed with which shops are selling cars reflects the strong consumer demand.
Used automobile prices in Germany, Europe’s largest auto market, have risen. Despite production snarls, supply-chain concerns have upended decades of automobile economics, with manufacturers reaping large profits.
Mercedes-Benz announced last week that its first-quarter revenue increased by 8% despite shipping fewer automobiles. The key to unlocking the mystery is to look at growing costs.The increase in used vehicles also helps by improving the value of leased cars.
The crisis in Ukraine is putting additional strain on supply networks, and automobile manufacturing is anticipated to remain below pre-pandemic levels this year due to the disruption. If demand stays strong, prices are likely to remain high.
Inflation in Germany unexpectedly rose to its highest level since records began in the early 1990s after the country’s reunification. The basket of products used to calculate Germany’s inflation rate includes secondhand autos.
Customers may now arrange a car inspection service through a new paid service that has been introduced by Prosus’ leading auto vertical in Poland, Otomoto.pl.
Any car listed on the marketplace can be requested to be inspected by Otomoto by users. Otomoto contacts the seller after receiving a request to set up a technical inspection of the car. The seller can then decide whether to allow an inspection of the car or not.
Anyone interested in purchasing a car posted on the platform by sellers from five Polish cities, including Warsaw, Wroclaw, Pozna, ód, and Gdask, may use the new service. In the end, the service will be available throughout Poland.
The European used car market has undergone several significant changes in recent years. In particular, there have been a number of important acquisitions within the sector.
The most prominent transaction in the European used car industry is the joint venture between France’s PSA Group and German manufacturer Siemens.
The deal saw the two companies combine forces to establish a platform for connected cars, improve the returns for leasing companies, and introduce alternative mobility services. The project also utilized the latest digital technology from Siemens, such as data analytics, AI, and wireless connectivity.
In the same year, US-based automotive technology company Carvana acquired the UK’s Cazoo. The firm, which has since gone on to become one of the leading European online car sales platforms, was founded to improve the online car buying experience. As well as a broad range of used cars for sale, Cazoo also offers digital car inspections and a stress-free home delivery service.
Leading European used car retailer Auto1 acquired the French online car marketplace MyNextCar. The move saw the combined entity become one of the largest and fastest-growing digital car retailers in Europe. The company utilizes its proprietary technology to select the best used cars from its online marketplace and make them available to customers instantly.
Another key acquisition in the used car sector is BBVA’s purchase of Carfinance247, a software provider of car finance in the UK. The deal marks the first instance of a large bank entering the used car market in Europe. The firm has since gone on to offer consumers a range of digital car finance products, including auto loans, car leasing, and rent-to-own scooters.
In addition to the public company acquisitions, there have also been several interesting partnerships between traditional European car retailers and new digital marketplaces. German Automobile Club ADAC, for instance, has partnered with the online marketplace DriveCar24 to offer customers a new way to buy and sell used cars.
Overall, the recent partnership acquisitions in the European used car market have had an impact on the sector, offering new opportunities and improved customer experiences.
The maturity of the used automobile market varies greatly by nation and geographical proximity. France and Germany, which operate under the same European legal framework in terms of automobile distribution, have strong national heritage in the automotive sector and create brands with global reach.
Germany has the most sophisticated online used automobile market, which is extensively used by both vendors and buyers. In Germany, used automobiles already have the longest warranty of any market.
As a result, certified automobiles do not provide a significant competitive advantage in this market. Dealers’ share of the used car market has been rebounding in recent years after a six-year decline.
Third-party listing services that include many images, full descriptions, and car history records to reassure used vehicle buyers have made it simpler for customers to sell automobiles of various ages on the private market.
Furthermore, franchised dealers in the EU Nations are coming under increased pressure from the independent dealer market, where new businesses such as CarMax are retailing more of the late-model automobiles previously offered by franchised dealers.
German shoppers were far more inclined to utilize independent e-tailer sites. In Germany, up to half of used car purchasers intend to use independent e-tailer sites for their next purchase, compared to only a quarter of French used car customers.
Automotive publications have been further integrated into this information source so that Europeans may utilize them as part of the basic needs.
Although eBay Germany entered the market later than expected, eBay Motors U.S. bought one of the largest online classifiers in Germany – mobile.de – and has emerged as a prominent competitor in Europe.
It is also one of the causes for the expansion of the German secondary market. eBay Germany currently has an inventory that is more than four times greater than that of eBay America.
The Aramis Group, which operates under the four brands Aramisauto, Cardoen, CarSupermarket, and Clicars in France, Belgium, the UK, and Spain, respectively, is a market leader in Europe for the online sale of used cars.
They are able to have a complete understanding of the market, customer expectations, and needs thanks to the data-driven approach supported by proprietary technology and digital tools.
