Before the crisis, a rule governed the second-hand market. A new car lost about half its value four years after purchase. Today, this rule no longer works. Because supply has become less important.
In the first seven months of the year, just over 3 million cars changed hands, down 14% from last year, according to data compiled by C-Ways. And this drop in sales mainly affects the most recent models: -41.2% compared to last year for cars less than a year old, minus 30% for those put into circulation after 2017.
Prices go up 20%
But if sales are falling, it’s mainly because there are fewer cars for sale. Since 2019, the number of newly registered cars has continued to decline. Manufacturers are no longer able to produce as much as before Covid, due in particular to the lack of electronic components. Therefore, the rare chips available have been reserved for electric cars and, in general, for the most expensive and profitable models.
The large traditional buyers in the sector (lessees, companies) have been forced to keep their vehicles for longer. This is also true for people who are faced with increasingly long lead times when ordering a new car. Therefore, the source of recent cars has dried up. And in the absence of sufficient supply, prices have risen: +20% compared to last year, according to Les Echos.
More than 10,000 euros for a 2016 Dacia Sandero
On the site of Aramis, a company specializing in car reconditioning, a Peugeot 208 from 2013 with more than 100,000 kilometers on the odometer is offered for 9,299 euros, a discount of almost 50% for a nine-year-old car. Of course, the vehicle has a 12-month warranty. And besides, reconditioned used cars always show prices at the top of the range.
Even more surprising, this offer from Aramis for a Dacia Sandero 1.2, 16V 75, registered in 2016 (51,518 kilometers on the clock). This model, quite well equipped (with rear radar), is on sale for 10,490 euros. That is, approximately its purchase price, six years ago. Prices so high that professional sellers now don’t hesitate to offer their used models for lease!
Source: BFM TV
