The year 2022 should be a annus horribilis for sales professionals used vehicles. The market is still very volatile and the numbers are getting worse every month. AND a very contrasting situation with 2021, which ended with record sales of used cars.
The used car market is falling sharply
The numbers are unchanged, used cars are no longer for sale, or at least less well. Since the beginning of 2022, sales have fallen by 13.9% compared to a year earlier. It just sold 3.1 million used cars between January 2022 and July 2022, compared to 3.6 million for the same period in 2021. A difference that was particularly noticeable last July when sales fell by more than 16%.
This sharp drop in sales is being put into perspective by industry professionals, who explain that 2021 was a particularly good year due to a shortage of semiconductors. Motorists prefer to return to used cars than to wait a long time for a new car. But even if we compare sales this year with sales in 2019, we see a down almost 9%.
The general increase in prices blocks the market
This poor second-hand market is explained by the fact that a significant increase in car prices. As the new market continues to grow, the second-hand market is also paying a price. According to INSEE estimates, prices for new vehicles increased by 6.3% year-on-year. The increase in prices for new vehicles over the past three years has reached even 15%.
This causes a snowball effect in the used goods market. Because there, too, the price of transport is rising. An increase of almost 20% was observed on some models. Therefore, motorists prefer to wait, waiting for more attractive prices and more choice. Because it is another problem of the industry – to find vehicles. Due to production shortages faced by producers, bargains are getting harder and harder to find.
As the market is less attractive, owners keep their cars for longer, which paralyzes the sector. Thus, operations with vehicles under five years of age suffer the most drop in sales by almost 30%.
If manufacturers predict a lull in the price of new cars until the beginning of 2023, then professionals in the sale of used cars hope for a recovery of sales by the end of the year. But with a difficult economic conditions due to inflationthis year 2022 may be particularly bad for the second-hand sector.
Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.