Used cars have increased in price by 24% in the past two years
Currently a used car
sells for 24% above its value early 2020 in Spain. This scenario is due to several factors: shortage of supply due to production reductions, semiconductor crisis, renewal of lease contracts, inability to extend the RAC and inflation.
In absolute terms, we are talking about an average increase of € 4,000-5,000; from €19,000 average bid price to €23,800. The VO market is more resilient to the crisis and there is room for growth at a national level. The average renewal of the UN is over 9 years, well above the European average.
Low unit availability due to the component crisis, which has weighed on current inventory, has led to a 17% reduction in commercial efforts by manufacturers and dealers, according to data from
PromoCAR from Kantar delivered to UnoautoSumauto’s new vehicle portal, relative to the accumulated of the year (until October).
Specifically, if a year ago the promotions had an average discount of 4,576 euros, they are now reduced
to just over 3,800 euros, although it was in August when they hit the ground, 3,500 euros. A market reality in which the profitability of the business prevails over volume, i.e. less sales but with more margin. According to Snap On, distribution network profitability was 3.8% in the third quarter of the year (latest available data), compared to 3% in the same period last year for new vehicles.
And it is that the average price of a new roadworthy vehicle, including VAT, registration tax and expenses, has increased from 30,618 euros to 32,200 euros (+5.2%), albeit with the discount, if it was previously 26,042 euros , state now around 28,400 euros (+9%),
according to PromoCAR. In short, buying a new car today is 2,400 euros more expensive than a year ago.
All this coincides with a moment of gradual stock recovery and a drop in demand
high inflation and the rise in interest rates (in Spain, 8 out of 10 UN purchases are financed), which will have a full impact on registrations this year, which are expected to fall by 3.4% to 830,000 units, according to MSI.
Sumauto reminds that dealers still have room to maneuver to reduce prices by 15%, sell more and remain profitable. That is, it would be enough to recover and
l average discount of 2021 so that the purchase of a new vehicle becomes more accessible to the wallet of the Spaniards without ceasing to be a good operation for the dealers.
According to
Ignacio Garcia Rojispokesman for Sumauto, “The current situation of rising prices and reduction of commercial actions by brands and dealers has contributed to further freezing of demand and is leading the market to review or maintain discount policies and release stock through tactical registrations , renting or renting a car A promotion policy more in line with the current momentum, with a gradual recovery of stocks, would help to relaunch private demand, which is waiting for price falls, without the brands and distributors to a profitability that remains above pre-pandemic levels.”
The residual value is the economic value that a vehicle retains after a certain time and mileage. This value is the opposite of depreciation and can be expressed in absolute terms as well as in percentage terms.
The Dacia brand leads the residual value ranking with the best position, with 13 points above the market average. Dacia’s leadership is confirmed by EUROTAX, a leading provider of data, solutions and business intelligence services for
the European car industrywith the aim of providing independent, transparent, accurate and up-to-date information about the automotive sector.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
