Those who are currently interested in a used car often cannot believe their eyes. Across all classes, the prices are more impressive than ever. The reason is once again the ongoing corona pandemic, because the demand is great and the supply is manageable.
Regardless of whether you are interested in a two-year-old VW Golf VII or a Porsche 911 from 2010 – prices on the used car market are not only stable; they are tighter than ever. While the price development for used cars was quite similar in the past few years, a lot has changed this year. In general, prices rise in winter and fall slightly in summer. But in the Corona year 2021, according to evaluations by the Europe-wide market portal Autoscout 24, a lot will be different: once again, prices rose rapidly in a monthly comparison – in July they even reached a new high with an average of around 23,000 euros. This means that used cars currently cost around 3,000 euros more than in July 2020 and are therefore more expensive than ever before. AutoScout24 experts see the reason for the countercyclical price increase in the pent-up demand of consumers as a result of the corona lockdown, in bottlenecks in new car production and in the increased importance of the car, which was also promoted by the pandemic.
“It is a sum of smaller and larger effects from the past lockdowns that is causing used car prices to rise sharply at the moment,” says Stefan Schneck, Head of Sales at AutoScout24. For example, the lack of semiconductors plays an important role, which has paralyzed the production of new cars in some places. “In addition, there is a pent-up demand on the part of consumers, which is due to the second lockdown in the spring of this year and is now breaking loose on the market. This increased demand for used vehicles pushed prices up again in July,” says Stefan Schneck. The leasing business, which was influenced by Corona, also recently drove up used prices. Because due to production difficulties during the first lockdown, there are no leasing returns and rental cars.
“Since there weren’t enough new cars for the returns, leasing contracts were often extended instead of replacing the vehicles with new ones as usual,” says Schneck, “so the leasing returns are not available on the market as used ones as is usual.” In addition, individual mobility has become significantly more important due to the corona pandemic. Many switched from public transport, trains and airplanes to their own cars. The Autoscout Used Car Price Index makes the changes described clear: unlike in previous years, the price curve only has one direction across all segments: upwards. Compared to the previous month alone, the index made a jump of around 300 euros: from 22,695 euros in June to 22,941 euros. Overall, prices are rising in almost all segments, with the exception of this development being sports cars and classic cars. The price increase corresponds to the shortage of supply, which is declining in the double-digit percentage range in a month-on-month comparison.
In almost all vehicle and age segments, the price index for July shows price increases of around 1 percent compared to the previous month. The biggest increase in used vehicles in the upper and middle class, with a price increase of around 1.6 percent. Particularly noticeable is the great demand for noble youngtimers and expensive fun-makers. Many are currently indulging in such a car, which is why the downtimes at specialist dealers have often been significantly reduced. Outliers from this development are vans and minibuses, the prices of which have fallen slightly, as well as vintage cars with a price drop of around 4 percent to 28,904 euros. Another noticeable drop in supply across all segments is also noticeable. The number of vans, minibuses and annual vehicles is falling the most – it has fallen by over 20 percent compared to the previous month. But in all other segments, too, the decline in supply is well into the double-digit range, with values between 12 and 19 percent.
The already higher prices for hybrid and electric vehicles rose again in July. Compared to the previous month, the Stromer are almost 1 percent more expensive to 35,440 euros and 35,106 euros. Consumers get away cheaper if they opt for a diesel: an average of 25,091 euros is currently due for this. Gasoline engines have also increased in price and now cost an average of 20,456 euros. Used cars with LPG and CNG drives are still the cheapest with an average of 11,940 euros and 15,680 euros.
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