The cost of pre-owned vehicles drops.
The cost of used cars is decreasing once more. What's striking about this trend is its impact on electric cars, as highlighted in a recent analysis by DAT, a market observer for Deutsche Presse-Agentur. Additionally, residual values, which represent the remaining value of a car's original price, have taken a hit for both electric and combustion-engine vehicles.
When compared to dealer sales figures for typical three-year-old electric cars during April, a decline of 18% has been observed in electric vehicles. Likewise, petrol and diesel cars saw a decrease, but to a lesser extent at 7% and 5% respectively. The lack of customer interest in these cars has contributed to their extended stays in dealerships, which has prompted price reductions. However, the current rate of decline is starting to slow down.
A representative from DAT explained, "We anticipate that the initial sharp downturn has concluded, and the curve is now flattening out." They attribute the less severe decline in diesel prices to a decreased supply and increased demand. This explains why diesel cars have higher percentage residual values than petrol cars in April, a situation that hasn't been seen since 2015, during the diesel scandal.
Although used combustion engine cars are now more affordable, they are not great deals due to the immense price jump brought on by coronavirus and the chip crisis. Despite the recent decrease, they still have residual values of 64.5% for petrol cars and 64.6% for diesels, which are still well above the values seen before coronavirus.
Thomas Peckruhn, Vice President of the German Association of the Motor Trade, stated, "We've returned to more normal conditions in the used car market after the period of scarcity." The increased supply and less pressure on buyers have allowed for a more relaxed approach to purchasing. With electric cars, though, we can't yet say they've reached normalization, as their percentage residual values stand at 50.7%, well below their pre-coronavirus levels.
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In the context of the analysis by DAT, it was noted that electric cars, specifically used ones, have experienced a significant decrease in prices, with a 18% drop compared to typical three-year-old vehicles sold by dealers in April. Furthermore, in particular, the decrease in used car prices has affected both electric and combustion-engine vehicles, causing a dent in their residual values.
Source: www.ntv.de
