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European Used Car Market Trends: January 2024

In the first month of 2024, the European used car market showed a mix of trends, with some countries experiencing growth while others faced challenges.

Spain and the UK Lead the Way in EV Value Retention

Spain was the only market to see battery electric vehicles (BEVs) retain over half of their original list price in January, with a retention value of 50.2%. However, this figure represented a larger gap in relation to the market average of 60.2%. In comparison, the UK saw BEVs retain 38.4% of their value, while the total market average was 53.3%.

Mixed Results for EVs Across Europe

In Austria, BEVs retained 47.3% of their new-car list price, compared with 53% across the wider market. Switzerland saw BEVs retain 44.9% of their value, resulting in a more favorable comparison against the wider market, which recorded an average retention value of 49%. On the other hand, Germany saw BEVs retain 41.7% of their value, while all powertrains averaged 51.6%.

Italy Struggles with EV Value Retention

All-electric models in Italy retained 37.8% of their new-car value after three years and 60,000km, while the average across all powertrains was 55%. This gap is particularly notable given that Italy has been offering incentives to encourage EV adoption.

Switzerland Faces Challenges in Used-Car Transactions

Used-car transactions have struggled in Switzerland over the last 12 months due to higher living costs. In January 2024, lower levels of used-car transactions persisted, with the average number of days needed to sell a used car increasing to nearly 71 days.

Germany and Spain See Declines in Used-Car Values

In Germany, absolute retention values remained stable month on month but dropped 7.7% compared with January 2022, and %RVs declined 4.6% against December and 10.6% year on year. Spain, on the other hand, saw the average absolute retention value of a used vehicle fall by 0.9% from December 2023 to January 2024, particularly driven by the declining values of PHEVs and BEVs.

Mercedes Reduces Electric Car Fleet

In a surprising move, Mercedes announced that it will reduce its electric car fleet in 2024 and will never produce a specific electric car model again.

Italy Introduces New EV Incentive Scheme

Marco Pasquetti, head of valuations at Autovista Group Italy, expects a new incentive scheme for electric vehicles to be announced in Italy in the coming weeks. The new scheme could provide citizens with an annual income below €30,000 the opportunity to scrap an older vehicle (up to Euro 2) and receive €13,750 towards a new EV purchase, more than double the current incentive.

Declining SVI in Switzerland

The SVI in Switzerland declined significantly in January, down 16.9% month on month and 13% year on year.

EV Adoption Remains Low in Spain

Despite government incentives, EVs have not yet taken off in Spain due to a lack of appropriate charging infrastructure. Combined sales of new BEVs and PHEVs reached a 12% market share across 2023 in Spain, which is increasingly distant from the European EV average.

UK Used Car Market Showing Signs of Recovery

Dealers in the UK are hoping that the used-car market will begin to improve and that RVs will stabilize, as early indications suggest that the wholesale market improved in January. Jayson Whittington, Glass's chief editor, cars and leisure vehicles, confirms that at the beginning of January 2024, %RVs for all powertrains in the UK fell, with BEVs recording the most noteworthy %RV performance, dropping from 59.1% to 38.4%.

Interactive Market Dashboard Provides Insights

The interactive monthly market dashboard examines passenger-car data by fuel type, for Austria, Germany, Italy, Spain, Switzerland, and the UK, and includes a breakdown of key performance indicators. This tool provides valuable insights into the European used car market and its trends.