Poland's used market in focus
Poland has a population of 38.6 million, but in 2015 registered just 355,000 new cars and imported over 800,000 used cars.
Add that dynamic to the fact that 93% of the used car park is over four years old and the new and used car markets have no current CO2 legislation in place and the Polish market lives up to its reputation as Europe’s automotive anomaly.
In 2015 new car sales grew by 8.3% to 355,000, a significant growth but well behind the volumes of similar sized countries. When a new car is equivalent to two-three years’ salary it’s clear why annual used car volumes are higher than new cars.
Used car imports were forecast to grow to 811,000, a figure that would have grown still further if it hadn’t been for the unhealthy exchange rate between the Polish Zloty and the Euro towards the end of the year.
The only fiscal guidelines in place that shape the structure of the new and used vehicle market is a 3.1% and 18.6% excise tax depending on whether a car engine is below or above 2.0 litres in capacity.
“For such a big country Poland’s automotive sector is still emerging and very challenging. We have seen Autorola’s main remarketing competitor withdraw from the market and we are now the only provider of a range of integrated remarketing, inspection and appraisal services under a single brand,” explained Wojciechowski.
“Working with the major leasing companies, outright purchase fleets and OEMs Autorola is bringing some much needed structure, process, technology and financial transparency to the home used market.
“Franchised dealers are able to buy the ex fleet stock in the knowledge the cars are as described and are worth their average price of €10-11,000. Vendors also like the transparency of online auctions, which are often run in parallel to their own online auctions thanks to data exchange platforms and synchronisation,” he added.
The majority of the used cars entering Poland are private imports bought at an average price of €3-4,000. As well as importing a car for their own use, many are acting as independent traders with cars bought to sell from their home to top up their family income.
Often imported cars have over 100,000kms on the clock, have no supporting paperwork and are in poor condition with odometer clocking commonplace, hence the cheap price. This poor condition of cars and poor upkeep by owners has contributed to Poland having one of Europe’s worst road death rates by population in Europe.
Polish motorists aspire to owning a German car, particularly a Volkswagen, hence the brand is the most popular as a used car and why nearly half the imported cars in Poland come from Germany. Skoda and Toyota are the top new car brands, with Toyota investing a great deal in marketing to regain its number one position in the market.
Poland’s market is a good example of how cross border remarketing via the likes of Autorola’s online used car portal is helping Europe’s used car market balance its books.
Over recent years Poland has been seen as the dumping ground for old used cars – 55% of the imported car population in 2015 was still over 10 years old – but there are some positive signs for the country. Real GDP has increased cumulatively by 19% since 2008, which is unrivalled in the EU. There has been solid wage growth and reduced levels of unemployment, while public spending levels are slowly increasing to support the country’s infrastructure.
“In 10 years’ time the Polish automotive market will have changed dramatically, but it will have to modernise itself in line with the growing demands and spending power of its population. If this continues Poland will no longer be Europe’s dumping ground for old cars,” said Wojciechowski.
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