Market Trends of Germany Used Car Industry
This section covers the major market trends shaping the Germany Used Car Market according to our research experts:
Gasoline and Diesel Vehicle are Expected to Hold the Significant Market Share
The used car industry is expected to grow in the coming years as new car sales decline due to the ban on diesel and petrol vehicles. The increased use of car financing and insurance options at German used car dealerships will result in significant growth in the used car market. In contrast, the country would see an increase in used car dealerships, resulting in increased availability of used cars for customers. According to Motorway, an online used car marketplace, the sale of used diesel cars increased by 21% between May and June, compared to a 13% increase in petrol cars. For instance,
- As part of the European Union's strategy to cut carbon emissions by 55 percent by 2030 compared with 1990 levels, it has recommended a 100 percent emissions reduction from new cars by 2035, a requirement that would make it difficult to sell the new petrol or diesel vehicles.
With the implementation of more stringent emission standards by governing bodies, the pries of new vehicles are increasing significantly. This in turn is encouraging the adoption of used vehicles among consumers, which are signficantly less expensive. Further, as the electric vehicles have witnessed a growth in recent years, significantly less number of electric vehicles are available in the used cars market. Therefore, gasoline and diesel vehicles are expected to hold major share in the market during the forecast period.
Organized Vendor Segment is Expected to Hold High Volume Share
The organized vendor segment is expected to hold a high volume share in upcoming years. This is due to an increase in the number of franchised dealers in the market. The entry of new market players and new retail models has also emerged as a key factor in driving the market growth. Furthermore, organized vendors benefited from increased brand loyalty across all age groups. In the coming years, the penetration of multi-brand dealerships and OEM Certified dealerships will contribute to the growth of the German used car market.
Moreover, The use of e-commerce channels for used car promotion and sales is expected to open up new opportunities for the used car market. Independent dealers and franchise owners are expected to use e-commerce to generate leads and display used car inventory. Furthermore, the implementation of technology is expected to open up newer investment avenues in the industry.
