Europe’s used car prices rise in 2021 as stock levels reach rock bottom says INDICATA report
European used car stock levels are 23.4% down in December 2021 compared with December 2020 according to the latest INDICATA Market Watch used car insights report contributing to record price increases.
Used car prices have risen by 28% in the UK, 10.9% in Germany, 14% in Spain and 12.7% in Italy during 2021 with more price rises likely during 2022.
The perfect storm for rising prices has been created with new car sales continuing to be constrained by semiconductor shortages and increased used cars demand which has created a shortage of stock.
Stock levels have fallen dramatically
INDICATA’s Market Days’ Supply analysis confirms how stock has fallen dramatically in 2021 across all fuel types.
The biggest change is the increased demand for used EVs with European countries ending December 2020 with a Market Days’ Supply (MDS) of 112 days and entering December 2021 with just 61 days of stock available. Used hybrids have also seen a rise in demand moving from an MDS of 100 days to 59 days during the same period.
Used diesel stock is lower than any fuel type with demand across Europe remaining strong. Its MDS figure has fallen from 71 days to just 43 days, while the MDS for petrol has fallen the least from 77 days to 55 days.
It is easy to see why prices have risen
“The market has seen record price rises during 2021 but when you review the levels of stock it is easy to see why they have risen. Stock levels are the lowest many countries have ever experienced as consumers turn to used cars as new car production continues to be affected by the global semiconductor shortages,” explained Andy Shields, INDICATA’s global business unit director.
“EVs continue to show signs that they are becoming a mainstream used car option as demand increases and stock levels have halved during 2021,” he added.
When reviewing the most popular used cars, the Volkswagen Golf remains both Europe’s overall best-seller and best-selling internal combustion engine car for the fourth consecutive month. Toyota’s C-HR remained the best-selling hybrid and the Renault Zoe the top selling BEV.
The fastest-selling used car under 4-years-old in November by Market Days’ Supply was the Toyota Prius + (27.3 days MDS) with the MG 3 second (32.2 days) and the Škoda Enyaq iV in third place (32.6 days).
