Used car prices are soaring across Europe, just like they are in most corners of the globe.
An analysis from AutoScout24 as part of its Used Car Price Index has revealed that in November 2021, used car buyers were paying an average of a little over 18 percent more than they did in November 2020. That translates to an extra €3,726 ($4,207), a significant sum for most consumers.
“In terms of price dynamics in the used car market, 2021 is an absolutely exceptional year,” head of Sales Germany at AutoScout 24, Stefan Schneck said in a statement. “In 2020 prices remained almost at the previous year’s level, now they have increased by 10 percent from a standstill – that has never been done in this form before.”
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Schneck says a number of factors can explain why used car prices in Europe have jumped the way they have. For example, the coronavirus pandemic has meant people are shying away from public transportation and buying cars. In addition, production interruptions at automotive factories throughout the pandemic have meant there have been fewer leased vehicles returning to the market. The semiconductor shortage has then boosted demand for used cars even more with many consumers unwilling to wait for a new vehicle and turning to the used market.
Used EV Prices Up 9 Per Cent, LPG-Powered Models Down 20 Per Cent
The German site notes that the prices of all kinds of used vehicles are on the rise regardless of their powertrains. In fact, prices of EVs have jumped 9 percent to an average of €33,243 ($37,538), hybrids have soared 5 percent to an average of €35,279 ($39,838), prices of petrol-powered cars have risen by 9 percent to an average of €20,405 ($23,041) and prices of diesels will hit an average of €25,035 ($28,270), an 8 percent increase, by the end of 2021. Interestingly, LPG-powered vehicles are 20 percent cheaper.
Mid-Size Cars Lead The Pack In Price Jumps
Price increases have also been noted for all vehicle segments. Among those hit the hardest are mid-size and range models that have jumped by 14 percent. Additionally, prices for small cars have jumped 12 percent, those in the compact and upper-middle class have both jumped by 11 percent, and luxury vehicles are now 10 percent more expensive than previously. Prices of SUVs and sports cars have also increased by 8 percent.