Europe’s used car sales up 13.2% 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.
Indicata’s figures show dealer stocks were lower by 500,000 used cars across Europe when compared to the start of April
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.
Natalie Middleton
Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.
