October 2, 2022

Wire Service Canada

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Booming in the used car market. “Prices have increased by 33%”

Buying a new car has become a real obstacle. Eternal waiting times, ever-increasing price lists, accessories that can’t be found due to a shortage of semiconductors.

The most obvious solution? Focus on used cars, even if they are new or not very long. But here, too, comes the bad news. The used car market has experienced a real boom, which has led to a significant increase in the amounts to be invested and at the same time reducing the availability of cars due to the high demand. If even a few years ago the used car market was a harbinger of “good deals” for the motorist, today everything is becoming more complex and expensive.

20% increase in one year

Using the numbers of the Agpi index that measures used car prices for sale on AutoScout24 and takes into account used vehicles that were posted less than 18 weeks ago and one with a value of less than €250,000, last year increases exceeded 20% and in three years the average cost rose by up to to 33%. “Inventory constraints and persistent high consumer demand – says Sergio Lanfranchi, AutoScout24 think tank – led to a continuous increase in used car sales prices also in the first seven months of 2022. According to the AutoScout24 Price Index, the average value of a used car in July 2022 was A threshold of around €21,600, equivalent to +21.7% compared to the same month last year and +33.6% compared to July 2019. For merchants, even in the current distribution scenario, the Internet has proven to be the ideal tool for maximizing sales and buying opportunities, particularly through Tools useful in keeping the market in check, every day, by monitoring supply and demand data.”

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Availability at the agency

Of course, the lack of new cars and a greater focus on used cars has changed their dealer availability. As confirmed by the Center for the Study of Fleet and Mobility Survey, a dealer’s average used vehicle inventory underwent strong fluctuations over the 10 years analyzed (from 2012 to 2021) resulting in a peak of a maximum of 89 units. in 2017 and a minimum peak of 50 in 2021.

Another interesting fact comes from the time spent. From 2012 to 2014, used car inventory has been in stock for an average of 84 days. From 2015 to 2020, the days were reduced to 73 days (2.3 months). In 2021, for the same reason analyzed above, it was reduced to 59. Translated? If at the beginning of the period the warehouse rotated 4.4 times a year, then last year the speed increased to 6.2 times.