The Italian new car market has been hit hard by the economic conditions faced by countries in the Euro with many dealers struggling to survive. The used car market has also faced challenges of its own but in the last few months there is a definite trend towards the used market finding its feet.

Retail buyers have been staying away from the new car market and instead have been turning to the used market when they need a new car. Any car at four years of age and selling for less than €10,000 is finding a new owner very quickly and the growth in this market has meant demand has been exceeding supply.

Prices of these cars have risen and there is now a shortage of stock, but it is a very different story at the premium end of the used market. A steady supply of used BMWs, Audis and Mercedes are coming back from long-term leasing agreements but there is very low demand for these models, based on price and engine size.

Like most European motorists, Italians, who have traditionally been small car buyers anyway, are downsizing to cars with smaller engines and the premium cars coming back into the used market are struggling to find buyers in the home market, even when companies have extended their replacement cycles by 12 months or more.

That’s where Autorola has come in, with its online remarketing platform helping Italian asset owners to find homes for this premium stock. Autorola’s thousands of online buyers based in Europe and beyond are being given access to this premium stock, which would not normally even be offered for sale outside Italian borders.

The result is that these premium models are being purchased by other European buyers in left-hand drive markets, mainly in France, Germany, Holland, Belgium and Austria, while the top end stock by price, engine size and specification is often purchased for export to the Middle East.

‘The used market is beginning to find its feet with demand for smaller low-priced cars rising in demand and the higher-value premium stock being purchased by cross-border buyers,’ explained Bruno Devoti, Autorola Italy’s country manager.

‘Although the market is very different to what it was 18 months ago, at least it has found its feet and despite the economic conditions is stable working to these new supply and demand dynamics.

‘Italy is yet another country where Autorola has seen cross-border buying helping keep used stock moving, which prevents asset owners from keeping cars sitting in storage areas for months at a time unsold. This market situation once again shows how cross border remarketing is able to keep the European used car market moving,’ he added.