Europe’s biggest used-car markets remain strong in third quarter

18 November 2024

While new-car deliveries continue to prove unstable in 2024, the used-car transactions of Europe’s big five markets remain positive. Autovista24 special content editor Phil Curry explores the third quarter figures.

The third quarter of the year saw growth across all of Europe’s big five used-car markets. Unlike new-car deliveries, sales of older vehicles are more reliable this year, with strong monthly figures and very few declines.

This contrasts with the performance of some new-car markets, which have battled rollercoaster registrations throughout the year. The data from each market shows the used-car sectors outperforming new-car deliveries, but the transactions increase suggest more buyers are turning to older models when exchanging vehicles.

The used-car sector could soon hit a rough patch, however. The new-car market of 2022 saw considerable declines due to the supply-chain crisis. This means that next year, there will likely be fewer three-year-old models available, with lower volumes through de-fleeting. Whether transactions of older models can cover the shortage remains to be seen.

Flying in France

The French used-car market grew by 6.3% in the third quarter, according to Autovista24 calculations based on statistics from AAA Data. This marks its strongest quarterly performance so far this year. With registrations in the country struggling, the figures show an appetite for buyers to change their vehicles remains, but newer models are less appealing.

The impressive performance in France comes despite a slow August, where transactions remained stable with just 0.02% growth. It was a strong July, with figures up 12%, which set the quarter up, while September saw an improvement of 5.8%.

The performance of the used-car market is in contrast to new-car registrations. In the third quarter, deliveries were down by 12%, according to Autovista24 calculations based on data from PFA.

In the first nine months of the year, used-car transactions in France grew by 4.1%, with over four million sales. However, the new-car market fell 1.8% in the same period, with nearly 1.3 million registrations.

This marks a turnaround in fortunes for both markets. In 2023, while new-car deliveries built across the year, the used-car market struggled, only recording growth in the fourth quarter. While transactions have continued to build, registrations of new cars have struggled in 2024, recording three months of growth across the first three quarters of the year.

Boost for BEVs

While the new-car market started to see battery-electric vehicle (BEV) deliveries struggle in the third quarter, transactions of used all-electric models have grown rapidly. Those adhering to the country’s ‘Crit’Air 0’ stickers, made up of zero-emission models, saw growth in all three months. This included an impressive performance in July, with transactions up 124%. Improvements in this market were also seen in August (up 58%) and September (up 46%).

While the used-BEV market performed well, the new-BEV market only grew 1% in July, followed by a 33.1% fall in August, and a 6.3% drop in September.

This stall coincided with the introduction of EU tariffs on Chinese-built BEVs. In July, AAA Data highlighted that sales of models from China had dropped significantly, with sales from Dacia falling 99%, those from Tesla down 34%, and Leapmotor dropping 29%, amongst others.

It is therefore likely that buyers instead switched to purchasing used BEVs, which would be cheaper than those in the new-car market. With Chinese-built models also not eligible to subsidies in the country, the tariffs may have been enough to push customers towards the used-car market.

Gains in Germany

Like France, Germany has had a rollercoaster year in its new-car market. However, data from the KBA shows the country’s used-car market has been more stable. Transactions were up 7.5% in the third quarter, according to Autovista24 calculations, with over 1.6 million passenger cars changing hands.

Germany saw growth in each month of the quarter, its first three-month period of the year in which this has occurred. Used-car transactions were up 15.8% in July, bouncing back after a decline of 1.5% in June. Following this, August proved slightly slower with a 1% rise, while September saw transactions up 6%.

The country’s new-car market struggled in the same period. Between July and September, registrations dropped 13.1%. Just as in France, this highlights that drivers are looking to exchange their vehicles, but not with new ones. Germany has seen registrations unsteady this year following the ending of subsidies for BEVs during 2023.

In the first nine months of the year, the used-car sector improved by 8.3% with more than 4.9 transactions. Meanwhile, the new-car market was down by 1%, with just over 2.1 million deliveries.

UK used-cars on the up

The UK’s used-car market improved by 4.3% in the third quarter of the year, according to the latest data from the SMMT. Almost two million transactions were recorded in the period, continuing a trend of growth in the country.

Unlike France and Germany, the UK’s new-car market has been stable across the first three quarters of the year, with only a 1.3% decline in August ending a two-year run of improving figures. However, the used-car sector has remained buoyant throughout 2024, with growth in every month so far.

Used-car sales in the first and second quarters increased by 6.5% and 7.2% respectively. However, this transaction growth slowed in the third quarter.

July saw 3.5% more exchanges, while in August, 4.5% more sales were recorded. This increased to 5% in September, as supply into the used-car market rose with the new-car plate change in effect.

Across the first nine months of the year, used-car transactions are up by 6%, with nearly 5.9 million units changing hands. In the same period, the UK’s new-car market grew by 4.3%.

Record for BEVs

A record 53,423 used BEVs found new owners in the third quarter, a rise of 57% compared to the same period last year. This helped the technology achieve its highest-ever used-car market share, with 2.7% of transactions. This is up from the 1.8% recorded between July and September 2023.

Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also rose, up 29% and 35.8% respectively. However, petrol still led the way in the used-car market during the third quarter of the year. Over 1.1 million transactions were recorded, up 5.7%, with a market share of 57.1%. 

Diesel car transactions were down by 3.9% as supplies dwindled. however, internal-combustion engines still dominated the used-car market, with a 91.7% share of sales.

‘Growth in the used car sector is good news and driven by an outstanding range of desirable and, increasingly, zero-emission vehicles to suit every budget. Maintaining this depends on a healthy new car market, particularly for EVs,’ commented SMMT chief executive Mike Hawes. 

‘Giving consumers the confidence to switch from their familiar petrol or diesel vehicles requires assurance and incentives. Otherwise, many would-be new car buyers will sit on their hands, leading to a diminishing market that will inevitably limit used car availability and affordability.

‘This will be to the cost of motorists, the economy and the environment, making a review of support for the transition and the regulation intended to deliver it, an urgent priority,’ stated Hawes.

Strength in Spain

In terms of growth, Spain’s used-car market recorded the best performance of the big five markets. Autovista24 calculations, based on data from dealer association GANVAM, shows the market improved by 11% between July and September, with 484,621 transactions.

The figures were helped by a strong performance in July, when growth of 22.5% was recorded. The used-car market slowed in August, with growth of just 1.7%, while the quarter ended strongly with an 8.4% improvement in September.

The industry body highlights that sales of passenger cars and SUVs up to five years old rose by 8.3% in the first nine months of the year, with 379,892 transactions. This is an important step forward for the country, which is trying to reduce the average age of its car parc.

Elsewhere, GANVAM also highlighted that between January and September, a total of 13,498 used BEVs have been sold in the country. This is a rise of 67.1% compared to the same period in 2023. Yet, the all-electric technology only holds 0.9% of the market.

The entire used-car market saw growth of 8.6% across the first three quarters of the year. This is stronger than the country’s new-car market, which saw an improvement of 4.7% in the same period. Unlike other major markets, however, Spain’s new-car sector has remained steady throughout 2024, with only two months of negative registrations.

Interest for Italy

Italy also recorded used-car growth in the third quarter, according to data from industry association ANFIA. However, unlike the other big five markets, the route to its 6.6% improvement was not as straightforward.

The market began the quarter strongly, with a 15.5% improvement in transactions. However, August saw sales fall 1.9%, although figures bounced back in September, with growth of 4%. This meant that just over 1.2 million cars changed hands in the three-month period.

In comparison, Italy’s new-car market saw a decline of 5.8% in the same period. This meant that across the first nine months of the year, registrations were up by 2.2%, while used-car transactions improved by 8.1%.