The ‘pharmacist prices’ for used cars during Corona are finally over. Since January, their average price has dropped by around 1,800 euros to 26,733 euros, as determined by the online platform AutoScout24 for the ‘Krone’. Electric vehicles in particular have become significantly more affordable.
“In recent months, we have seen a downward spiral in used car prices. In the first half of the year, they fell by an average of 6.3 percent,” summarizes Nikolaus Menches, Austrian head of AutoScout24. In almost all categories, car buyers are now driving better than recently. Even the popular SUVs have become 4.47 percent or 1,617 euros cheaper since January. A handed-over small car is now available for an average of 14,632 euros or 944 euros less, in the compact class you can get it for 19,266 euros (-1243 euros), a price reduction of as much as 6 percent per piece. For middle-class models you have to add 23,622 euros (-1201 euros), the upper class amounts to 60,826 euros (-4019 euros) in the database, which contains around 111,000 specifically offered cars.
Two values stand out in particular: young second-hand cars (license plate 1 to 3 years) are apparently particularly popular and, against the trend, have even risen slightly in price by 1.78 percent. Electric cars, on the other hand, are suffering significantly disproportionate losses in value. They are now 9.2 percent cheaper than at the beginning of the year, which means you can save almost 4,000 euros in one go. Expert Menches explains why: “Many expensive first-generation electric cars are now coming onto the second-hand market. However, the assumed high residual values can no longer be achieved because demand is too low. At the same time, there were price reductions for new cars, such as Tesla. Dealers therefore had to significantly depreciate their stock.”
This is also partly responsible for the general downward trend in car costs, says Menches: “The high loan rates make financing more expensive for dealers. The longer a car is with them, the more expensive it becomes to sell it and give discounts again. So the market is normalizing.” In fact, the failure of the supply chain for new cars two years ago suddenly caused the price of old cars to rise from around €25,500 to around €28,500. It remained fairly constant there until the end of 2023. Now that there is a flood of new vehicles again, the demand for used vehicles is decreasing – and with it the purchase prices for consumers.
If interest rates fall, cars could become more expensive again
So anyone looking for a cheap car is currently driving cheaper. However, the tide could turn again if the interest on loans falls again, probably in the fall. Menches: “Then I expect demand to pick up and the sales pressure for retailers to decrease. That could keep prices on the used market more stable again.” The downward trend in purchase costs will then come to an end.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
