Europe Used Cars Market Size

Europe Used Cars Market size was valued at USD 725.4 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 and 2032. The shortage of semiconductor chips is driving the used car industry in the region. There are fewer new automobiles in the market due to production slowdowns and temporary plant closures brought on by the lack of automotive chips. As fewer new vehicles hit the market, buyers may buy used cars as a substitute to meet their mobility demands.

High new vehicle prices and fewer incentives provided by automotive OEMs have decreased the availability of new cars. Additionally, higher pricing and restricted supply are likely to cause consumers, particularly those on a tight budget, to view used cars as a more cost-effective option. For instance, according to the Car Remarketing Association of Europe, in 2022, Italy recorded the largest increase in used car transactions, with a 64.9% rise In September. With a growth rate of 52.2%, France was closely followed by Germany (11.9%), Austria (14%) and Spain (26.2%).

Moreover, the value of new cars rapidly decreases in the first few years of ownership. Owing to such factors, a lot of people choose to buy used cars rather than new ones to save money on depreciation. Due to the lack of raw materials, various Original Equipment Manufacturers (OEMs) raised the MSRP for recent model years, which raised the cost of used cars from those model years and trickled down to older inventory, thus depreciating the value for new cars in the market.

Further, prices are influenced by consumer willingness to pay close to or even more than MSRP for used cars when there is a lack of new inventory and lengthy wait times. According to a Fleet Europe report published in 2023, the retail depreciation difference between the prices of new & used cars at different prices is 36%. Furthermore, the report states that the UK performs ineffectively among the major Western economies, with cars losing 51.9% of their value in three years.

The costs of buying, storing, and maintaining inventory are covered by dealerships and companies in the used automobile sector. Growing inventory costs, such as those associated with purchasing vehicles, paying storage fees, and depreciating assets, can reduce profit margins, challenging a dealer company's ability to remain in operation, especially in difficult economic times or during market downturns. Due to this, these rising costs can significantly hinder market growth by making it more difficult for dealerships to sustain profitability and attract new customers.

Europe Used Cars Market Trends

Online sales are contributing to the improvement of customer experiences in retail. An increasing number of customers are using online retailers to make purchases, and new product categories are constantly being offered. Online sales further offer remedies for most of the problems encountered during the conventional used car purchasing procedure. These include easy price comparisons & benchmarking, at-home car deliveries & trade-ins, minimal or no paperwork, and instant access to a large selection of available automobiles and personalized suggestions.

Cazoo (UK) and the Aramis Group, (in which Stellantis holds a controlling stake) are some examples of web-based retailers that carry out much of their sales process online. New retailers, on the other hand, are typically well-known participants at the top of the value chain who have begun to sell their cars online. Leasers, C2B cash purchasers, and auction platforms, such as LeasePlan with CarNext, Arval with Autoselect, Auto1 with Autohero, and BCA with Cinch, are among the new online retailers.

The introduction of used car warranty services is becoming a significant growth driver in the used cars market, as it enhances consumer confidence and trust. These warranties provide buyers with a sense of security, knowing that they are protected against potential mechanical failures and costly repairs.

By offering warranties, dealerships can differentiate themselves from competitors and appeal to a broader audience, including first-time car buyers and those seeking reliable transportation options. This increased assurance encourages more consumers to consider purchasing used cars, thereby expanding the market. Due to this, warranty services are boosting sales and enhancing overall customer satisfaction and loyalty.

Europe Used Cars Market Analysis

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Based on the vehicle, the market is divided into hatchback, sedan, SUV, and others. In 2023, the SUV segment accounted for a market share of over 52%. These vehicles have been the fastest-growing segment in the market, driven by their versatility, practicality, and perceived safety. The rise of compact & mid-size SUV models, such as the Nissan Qashqai, Volkswagen Tiguan, and Peugeot 3008, has fueled this trend.

Additionally, consumer preferences, notably toward SUVs for their versatility & practicality, significantly influence the vehicle segment in the Europe used cars market. This shift reflects changing lifestyle needs & preferences, with consumers increasingly prioritizing spacious & adaptable vehicles, such as SUVs, over traditional options such as hatchbacks and sedans.

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Based on fuel, the Europe used car market is categorized into gasoline, diesel, electric, hybrid, and others.  In 2023, the gasoline segment accounted for a market share of over 51%. Despite the growing shift toward electrification, gasoline-powered vehicles continue to dominate the market.

While the long-term future of gasoline vehicles is uncertain owing to the increasing emissions regulations and the push toward electrification, they are expected to remain a significant part of the used car market for the foreseeable future. The trend reflects the gradual adoption of new technologies, as well as concerns around factors, such as driving range, charging infrastructure, and battery longevity, that still influence consumer choices in the market.

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In 2023, Western Europe dominated the Europe used cars market with around 45% of the market share. The market in Germany continues to thrive, owing to factors such as increasing demand for electric & hybrid vehicles, as well as the growing preference for online platforms such as Mobile.de and AutoScout24, shaping the market. Consumers prioritize reliability, fuel efficiency, and advanced technology in their choices. A shift toward electric and hybrid models is evident, driven by environmental policies and consumer preferences. Leading platforms such as Marktplaats and AutoTrader cater to diverse needs, emphasizing sustainability, affordability, and advanced technology.

The used cars industry in Southern Europe is expanding steadily. Economic and urbanization factors significantly influence consumer preferences, particularly favoring small and fuel-efficient cars. The increased demand for hybrid and electric cars is a result of government backing and environmental awareness. Prominent e-commerce sites such as Milanuncios and Coches.net make purchases easier while accommodating a range of tastes.

Europe Used Cars Market Share

Emil Frey Group and AVAG Holding dominate the market with around 3% of the Germany used cars industry share in 2023. Emil Frey Group leverages its digital arm, Emil Frey Digital, to pioneer industry-leading software solutions tailored for the Europe used car industry. By facilitating seamless web and mobile applications, the Group empowers car distributors, buyers, and insurers to embrace digital transformation. Through customer segmentation, targeted communication, and real-time performance tracking, Emil Frey Group ensures a 360-degree view of customer data, driving efficiency and competitive advantage in the digital age.

AVAG Holding SE strategically positions itself in the Europe used car market by leveraging its diverse portfolio of exclusive car dealerships. Operating under the umbrella of AVAG Holding SE, such as the Thomas car dealership, enables access to a central warehouse stocked with over 10,000 vehicles. This extensive inventory, coupled with efficient delivery mechanisms, empowers the company to swiftly meet customer demands, enhancing its competitive edge and market presence.

Europe Used Cars Market Companies

Major players operating in the Europe used cars industry are:

• Alphartis Deutschland
• AMAG Schweiz
• Autotorino Italien
• AVAG Holding Deutschland
• Avemo Deutschland
• Bernard Frankreich
• Bertel O. Steen Norwegen
• Bilia Schweden
• BPM Frankreich
• Emil Frey Group
  

Europe Used Cars Industry News

• For instance, in December 2023, STELLANTIS introduced online direct sales of used cars in the UK via its Spoticar division, aligned with the automotive industry's shift toward new-car direct sales. Consumers can purchase from Stellantis’ Corby reconditioning center through spoticar.co.uk, with delivery available at any Spoticar dealership without delivery fees.
  
• For instance, in August 2023, Suzuki GB introduced its in-house Approved Used Car Warranty, aimed at enhancing customer retention and boosting service, maintenance, and repair volumes for its dealer network. This initiative highlights the company's commitment to providing added value and support to customers while driving business growth for its network of dealerships.
  

The Europe used cars market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Hatchback
• Sedan
• SUV
• Others

Market, By Fuel           

• Gasoline
• Diesel
• Hybrid
• Electric
• Others

Market, By Sales Channel

• Peer-to-peer
• Franchised dealers
• Independent dealers

Market, By End-Use

• Personal
• Commercial

The above information is provided for the following regions and countries:

• Western Europe
  • Germany
  • Austria
  • France
  • Switzerland
  • Belgium
  • Luxembourg
  • Netherlands
  • Portugal
  • Rest of Western Europe
• Southern Europe
  • Italy
  • Spain
  • Rest of Southern Europe
• Northern Europe
  • Denmark
  • Rest of Northern Europe
• Eastern Europe
  • Poland
  • Romania
  • Czechia
  • Slovenia
  • Hungary
  • Bulgaria
  • Slovakia
  • Croatia
  • Rest of Eastern Europe
• Rest of Europe