The boom in the purchase of second-hand cars in Spain
The second-hand cars market has increased a lot in recent months. Specifically, according to the newspaper Público, used car sales this year have increased by 135% compared to 2020.
Why has the sale of second-hand cars risen so sharply? And, above all, how will this new situation affect the automotive world?
Booming second-hand car market
The health emergency situation that had a global impact is one of the main reasons for the increase in second-hand car purchases. The instability following the exceptional situation has led many families to opt for more economical options when it comes to renewing the family car.
In addition, the health crisis has made it easier for many users to feel more insecure using public transport. These users now find their alternative to mobility in second-hand vehicles.
In addition, it is worth highlighting another striking fact that emerges from this situation of economic instability: the ageing of the car fleet. According to PostVenta, the average age of the car fleet in Spain has increased by 65% in the last 8 years.
Consequences of the increase in second-hand car purchases
An immediate consequence of this situation is that spare parts and aftermarket workshops will increase their turnover over the next few years. An ageing car fleet inevitably means an increase in the need for vehicle repairs by users.
We are living a very particular moment in the automotive industry in Spain. Currently, there is a high demand for used vehicles, making the ratio of used to new vehicles one for every 4.2 vehicles. In other words, according to MotorEs, 4.2 used vehicles have been sold for every new vehicle.
Used and second-hand vehicle sales increase in 2021
During the month of June 2021, sales of used and pre-owned vehicles also increased. Specifically, it has meant an increase of +14.5% compared to the same period of the previous year and +6% more compared to the pre-pandemic period.
In the first quarter of 2021, a total of 956,145 units were sold, 41.5% more than in 2020. This is a very noticeable increase in sales volume, which undoubtedly augurs well for an increase in demand for aftermarket products in the short and medium term.
To which vehicle fleet does this data belong?
According to various specialised media, sales of used cars over 10 years old in Spain will experience a year-on-year growth of 8% by the end of 2021. Most of these vehicles are diesel (60% of the total) and petrol (36% of the total).
One third of this second-hand car market belongs to vehicles more than 15 years old. Sales of vehicles 15 years old or older have increased by +29% compared to pre-pandemic data. On the other hand, cars with an average age of between 3 and 5 years have exceeded the 2019 data by +47%.
The sale of used cars, in addition to increasing their weight in the car fleet, will condition the automotive and aftermarket sector. It will therefore be advisable for supply companies to prepare their stock for this new situation.