The price of used cars rose by 20% in 2022, 4 times the CPI

The price of used cars does not stop rising in Spain. At the end of 2022 it increased by 20.2%, reaching €17,990according to the Coches.com and GANVAM barometer.

The rise has moderated as the year progressed, since since the previous quarterly barometer of last October, they barely rose 40 euros. The increase in the price of cars over ten years old also seems to have slowed down, although the percentage increase is much higher than the average:

Source: Coches.com-GANVAM Barometer

The increase in the prices of used cars exceeds that registered in new cars. According to data from the National Institute of Statistics (INE), the CPI for new vehicles rose by 10.4% in 2022. The rise in used cars almost doubles that figure. The causes are the low supply of new products available, due to logistical problems and a shortage of microchips. This caused delays in deliveries and increased demand for used cars.

If we compare the prices with respect to what we saw in 2019, before the Covid-19 pandemic, we see that used cars have increased in value by practically 33%. And again it is the older vehicles that appreciate the most. While the cost of living has risen 12% in this time, it’s not uncommon for cars over 10 years old to be worth 50-60% more.

“There is still a huge mismatch in the market, making vintage cars increasingly worth more. Something illogical, since they are products that depreciate over time”, indicates Gerardo Cabañas, general director of coches.com. Looking to the future, Cabañas indicates that “the increase in prices has already stopped. Looking ahead to 2023, everything indicates that there will be greater availability of new cars, which is why the pre-owned vehicle market, which is very important in Spain, should be reborn. At the same time, the implementation of Low Emission Zones should corner the oldest and most polluting ones”.

The pandemic drowned the pre-owned car

If there is something that hinders the rejuvenation of the Spanish mobile fleet, it is the drop in new car sales. In addition, the lack of stock caused the offers of pre-owned cars to be diluted. Analyzing the registered transactions, it can be seen that in 2022 20% fewer cars less than three years old have been sold than in 2021.

If we compare them with those that were registered before the pandemic, they are 40% less. Of 427,508 units (20% of the total market), last year they accounted for 253,903, 13.4%. In 0 km cars, less than a year old, less than half are sold than three years ago.

Source: Coches.com-GANVAM Barometer

The total used market has lost 11.3% of its sales compared to pre-pandemic figures, but the loss is not only quantitative but also qualitative. According to the general director of Ganvam, Fernando Miguélez, “we find ourselves with a declining second-hand market in which the lack of young models due to the lack of stock derived from the chip crisis has set the tone. Companies and rental companies have had to retain vehicles in their fleet for longer than usual due to tensions in the supply chain, which has prevented these quality VO “factories” from operating at full capacity. In this context, the average age of the used vehicle sold was almost 11 years and reached almost 15 years in transactions between individuals, which accounted for more than 60% of transactions; a circumstance that accelerates the aging of the park, complicating the aspiration to achieve sustainable and decarbonised mobility”.

Differences by CCAA

Madrid and Catalonia are the communities that have pulled the most sales of young used cars, while Andalusia concentrated 20% of the sales of used vehicles over 15 years old, more than what corresponds to it by size (17, 8% of the Spanish).

Regarding prices, Communities such as Madrid, the Canary Islands or Castilla la Mancha saw lower prices than the Spanish average.

Source: Coches.com-GANVAM Barometer

The smallest price increase in 0 km cars occurred in the Balearic Islands and Castilla y León, where they did not reach double-digit increases. Where this type of vehicle became more expensive was in the Valencian Community, the Canary Islands and Navarra, with increases of 30%.

If we look at the oldest cars over 15 years old, it was the Cantabrian coast where these vehicles became more expensive last year. Cantabria, Galicia and Asturias see increases of more than 50%. In the case of the first, the prices are more than doubled compared to those seen in these cars before the pandemic.