The used car market - France (2024)

1.2 The global and European used vehicle market

According to a report by research site Precedenceresearch, the used car segment will reach a market size of *,*** billion USD by ****. This result is the culmination of several years of growth. Indeed, demand for used cars in developing countries continues to grow, while supply is increasing. Asia-Pacific now joins the historical players USA and Europe as the biggest growth pole, representing **% growth by ****.

As a result, *** million cars were traded worldwide in ****, and the report forecasts an average annual sales growth rate of *% between **** and **** for the global used car market.

Used car market size by volume and forecasts World, ****-****, in millions of units CAGR: +* Source: ****

Used car market breakdown World, ****, in Precedenceresearch

In Europe, the number of advertisements for used cars continues to grow. In April ****, the supply of used cars in * European countries (***) was up *% on ****, and was distributed as follows:

*,***,*** used passenger cars (***) ; ***,*** used commercial vehicles (***).

Increased supply necessarily leads to lower prices in these countries. The average price of used vehicles resold by professionals was **,*** euros, down *.*%. But the drop is most noticeable in private sales. Prices for used vehicles offered by private individuals fell by *.*%. In France, all segments were affected by the fall ...

1.3 National market: mixed decline in used vehicle registrations

The website of the French Ministry of Ecological Transition reports data on vehicle registrations. In ****, *.* million used cars were registered in France. In comparison, only *.* million new car registrations were recorded. In ****, therefore, there were almost three times as many used cars purchased as new cars.This trend became much more pronounced during the Covid, reaching *.* times more used cars registered than new cars, but this pace is now gradually returning to its pre-pandemic level, with a Used/New ratio of *.* in ****.

New and used car registrations France, ****-****, in millions of units Source: ****

The rate of growth in pre-owned registrations showed some growth between **** and **** of *%, and peaked during the Covid years at +*% between **** and ****. However, there was a **% drop between **** and ****, and over the longer term, a *% drop between **** and ****, more nuanced though real. This drop can be explained in part by shortages of used cars less than * years old, themselves the result of production difficulties for new cars[***].

As mentioned above, **** was an important year for this ratio, which peaked at around *.*, an unprecedented value. In fact, the new vehicle market was penalized by the first lockdown, which forced factories and dealerships to close, while the used vehicle ...

1.4 Foreign trade in used vehicles

International trade: There is a clear trend towards exports of used vehicles from developed to less developed or developing countries. This trend is notably influenced by the fact that, in these importing countries, environmental standards are not as stringent as in developed countries. Car fleets that are no longer allowed to operate in developed countries are finding a new lease of life in less developed countries. In ****, a report by the FIA (***) [***] from Europe.

The Netherlands is one of the main exporters of used vehicles from Europe via the ports. These vehicles did not have a valid roadworthiness certificate at the time of export, most were between ** and ** years old, and most were below the European Union's EURO* emission standards for vehicles. For example, the average age of used vehicles exported to Gambia was close to ** years, while a quarter of used vehicles exported to Nigeria were almost ** years old.

Measures are beginning to be put in place to limit this trade. The Economic Community of West African States (***), for example, has set standards for cleaner fuels and vehicles from January ****[***].

National trade:The Journal de l'Automobile's **** and **** publications on customs balances for used car imports and exports allow us to ...

1.5 The impact of Covid-19: a boon for the market?

According to an article by Capcar, the used car market performed very well after the first confinement. Used cars have always been popular with the French, and are becoming an increasingly attractive solution. In June ****, after the first decontainment, a **.*% rise in the number of used cars sold was recorded, followed by a **.*% increase in September and *.*% in October.

Several factors influence the market:

Inventory

The health crisis saw the number of vehicles increase. All the vehicles that could not be sold during the first containment period became available from June onwards, and customers were able to take advantage of a very wide and diversified offer. Stock is a real advantage: especially in a second-hand market, where customers are primarily looking for a bargain. All post-containment customers were thus able to find vehicles to meet their needs.

Government assistance

Government schemes such as the conversion bonus have proved particularly effective in the post-crisis context. This measure is particularly popular and is detailed in the regulations section. This measure has enabled the market to recover, and customers to complete their purchases without suffering too much of the economic stress generated by the crisis.

Necessity

Last but not least, the car is one ...

2.1 Used vehicles star of demand

Data from the French Ministry of the Environment and Ecological Transition enable us to establish which types of used vehicles are experiencing the greatest increase in demand.

*since January *, ****, vehicles with fewer than ** seats have been counted as passenger cars. ** VASP: Specialized Self-Propelled Vehicles*** Trailers with GVW > * tonnes; registrations of light used trailers are not included

While almost all categories recorded a drop in registrations between **** and **** (***) and are mostly increasing over ** years. Over the long term, the public passenger transport category is leading the sector's growth, with an **% increase between **** and ** years earlier. This is followed by the "other" category, with **% growth. However, these categories are not the most important in terms of volume, since their total new registrations represent only *% of total used vehicle registrations.

2.2 Household motorization and used car purchasing factors (price, mileage, etc.)

Household motorization

Share of motorized households France, ****-****, % of total Source: ****

The proportion of motorized households in France has been rising since the turn of the century, and will continue to do so until ****. In ****, **.*% of French households had at least one vehicle, compared with **.*% in **** and **.*% in ****. Leaving aside the Covid-** period, the rate of motorization per household will continue to rise slightly, returning in **** to the levels reached in **** (***).

Disparities according to household characteristics:

While the rate of motorized households has risen overall, there are nevertheless disparities between equipment rates according to the type of household concerned.

Motorization by household type France, ****, in Source: ****

Household motorization rates are much higher in larger households, and tend to fall to **.*% among single people, who are more likely to use public transport, soft mobility or car-sharing.

Factors influencing the purchase of used cars:

Every year, Kantar and Aramis Auto publish a barometric study on the French and the automobile.

Main criteria when buying a used car France, ****-****, % Average number of criteria: *.* (***) Source: ****

When it comes to used vehicle purchases, price is the first criterion considered (***). These three elements make up the trio of criteria considered at the time of purchase, far ...

2.3 Behavior of used car buyers

Which car brand is best?

In ****, according to an OpinionWay survey, Peugeot tops the list of the French people's favorite car brands, followed by Renault and Audi. The top * favorite brands were as follows:

Peugeot Renault Audi Citroën BMW

It's clear that French brands are well known among the public, while German cars are less well known.

Awareness of major car brands France, ****, in Source: ****

Budget and vehicle payment, a crucial stage

Because of inflation, most French people (***), rising prices have prompted many to resort to savings for this purchase. Financing is an option increasingly considered by users. In fact, only **% of buyers are considering a future cash payment. Rental solutions are on the rise, with **% of consumers considering this type of financing for their next purchase[***].

Second-hand: a better deal?

The Aramis Auto barometric study reveals certain characteristics in the behavior of used car buyers. These buyers represent a real pole of demand, and are motivated in particular by the fact of getting a good deal. These are buyers who are looking above all to obtain a car in good condition for a lower price. The survey results for the question "What's the best deal for buying a car?" ...

2.4 Electrics gain ground

New trends are changing demand and the used vehicle market. The democratization, albeit still in its infancy, of electric and hybrid vehicles is already beginning to make itself felt on the second-hand market; although it is mainly affecting new vehicles.

Breakdown of used vehicle sales by energy France, ****, in Source: ****

Sales of used electric cars (***). Hybrids, whether rechargeable or not and running on petrol or diesel, have also seen growth, accounting for just under *% of sales.

Breakdown of used car sales by Crit'Air sticker France, ****, in Source: ****

3.1 The brands most present in used car sales

French brands :

Brand penetration by origin in the used vehicle market France, september ****, % Source: ****

French brands are gradually losing their dominance of the used car market. In ****, they already accounted for just **.**% of registrations on the market, which was already down -*.*% in volume terms on ****, but they were still in the majority. By September ****, the balance had shifted and French brands no longer represented the majority, but only **% of market share, corresponding to ***,*** vehicles in September ****, down -**.**% in volume and -*.** points in PDM.

On the other hand, the share of French brands in the Top** remains substantial, at over **% of market share.

Top-selling used cars in ****:

Breakdown of the top* used car models preferred by the French France, ****, in Autoplus, reprocessed by businesscoot the French brands Renault and Peugeot together account for a substantial share of the best-selling used cars in the first half of ****, with over **% of the top* searches on the carVertical platform, and **.*% of total searches.

While the popularity of Renault models is on the rise, with +**.*% for the Renault Captur consultation and +**.*% for the Renault Kangoo, Peugeot is lagging behind (***)[***].

These trends are in line with the growth experienced by French brands in general, ...

3.2 Several sales channels compete for market share

Only the automotive market in its entirety by sales channel is available, giving an idea of car customers, even if it could conceivably be different for used cars:

Automotive market by sales channel France, August ****, in percent Source: ****

The chart is based on sales in the first * months of ****. at that time, sales to private individuals occupied the largest market share with **% of sales, in **** this share was worth **%. Sales to businesses and long-term leasers accounted for **.*% of the market. Today, sales to companies account for **% and to short-term leasers only *%.

Demonstration vehicles accounted for **% of sales, down almost * percentage points on ****. These are vehicles sold by the brands to dealerships for display or to enable customers to test drive the cars. These are cars with a special one-year registration certificate, which is why dealerships are more interested in selling these demonstration cars when they are between * months and * year old.

3.3 Used car distribution channels

Source: ****

C*C sales habits are changing. While the value of the property was for a long time the main criterion for the seller when reselling, it is now relegated to second place. In ****, people are looking for convenience above all else. in fact, **% of those surveyed prefer unencumbered transactions when selling.

Most important criteria when reselling a vehicle France, ****, in Source: ****

Auctions are also a special channel, targeting a specific type of product. Indeed, used vehicles sold through auctions are most often older, collectible models, sold at higher prices and with higher positioning than vehicles sold through other distribution channels, yet Renault, Citroën, Peugeot and Volkswagen are among the top * main players. The main auction houses were BC Auto Enchères, VP Auto, Alcopa Auction and Toulouse Enchères Automobiles, which accounted for **% of the total amount auctioned in the sector. As mentioned above, compared with other distribution channels, used car auctions are unique in that the amounts purchased can sometimes reach millions of euros. The brands most represented among these "millionaire" auctions are Mercedes and Bugatti (***)[***].

Barriers to buying second-hand

When it comes to the reasons why people don't buy used cars, the January **** OpinionWay survey for CarVertical ...

3.4 The Internet: an integral part of the used car buying process

In recent years, the Internet has taken on a central role in the used-vehicle buying process, either because it is widely used as a source of information and comparison, or as the final purchasing platform (***).

Distribution platforms

Among the latest developments in used-vehicle distribution platforms is ParuVendu.fr, which has just launched an offer for automotive professionals, proposing for ** euros a month to put ads online on a wide range of partner sites such as auto-moto.fr or turbo.fr. In April ****, the ParuVendu platform had ***,*** ads online in the used car category[***].

In addition, new platforms were created to boost the market. In February ****, VO Market joined the market, aimed at professional dealers. This platform operates on the simple principle of distributing vehicle lists to captive professionals. However, in order to differentiate itself from the competition, the platform incorporates an offer sorting and personalization stage, which enhances the quality of service. The platform focuses on recent vehicles: the cars offered never exceed ***,*** km on the odometer and are never older than ****[***].

At the heart of the purchasing process

In ****, nearly **% of used car buyers will indicate that consulting online business places has played a major role in their purchasing process. ...

4.1 The ageing of the used vehicle fleet

As the years go by, the used car fleet continues to age. In ****, the average age of the fleet was * years, rising to **.* years by **** [***].

Breakdown of used car fleet by age France, ****, % Source: ****

In ****, sales of older used cars increased. Sales of vehicles between * and ** years old continued to grow (***). Sales of newer cars fell again this year, losing *.*% to **.*% of the market. [***]

While the biggest increase was recorded among cars aged * to ** years (***), the most significant increase was among those over ** years old, which now account for **.*% of the fleet.

These figures do not bode well. These vehicles, registered in **** or earlier, do not qualify for competitive Crit'Air stickers. At best, these cars can have a Crit'Air * sticker for petrol engines and a Crit'Air * sticker for diesel engines. These cars will therefore be increasingly driven out of city centers and low-emission zones (***).

4.2 Wide price differentials between different used vehicle segments

The consumer price index for used cars :

Used car consumer price index France, ****-****, base *** in **** Source: ****

The selling price of used cars has seen two peaks over the past ** years, one in **** and the other in **** (***). After a period of stability in the CPI for used cars, the index began to rise again slightly in **** and will continue to do so until ****. Prices soar in **** and ****, due to the inflation context and the energy crisis.

B*C prices :

Average selling price of used cars in B*C France, ****, in euros Source: ****

This price increase is particularly marked in B*C channels: indeed, the average used car sales price has risen from €**,*** in **** to €**,*** in ****, representing growth of +***.*% in ** years [***].

The specific pricing of vehicles sold at auction:

As mentioned above, auctions are a distribution channel that needs to be separated from other circuits, as it is a different type of product that transits through them: older, sometimes collectible products, and thus often sold at a higher price. In fact, almost * in * cars sold at auction are sold for more than €**,***. Cars priced at over €**,*** account for **% of sales: the market for used cars at auction is thus focused on the ...

4.3 Supply trends: used electrics

In ****, **% of respondents to the Kantar - AramisAuto survey planned to acquire a "hybrid or electric" vehicle. Among those intending to buy a used vehicle, this percentage drops to **%.

Electric vehicle purchase drivers France, ****, in percent Source: ****

Barriers to buying an electric vehicle France, ****, in c Source: ****

While the reduction of environmental impact is the main driver for the purchase of an electric vehicle, government subsidies also play an important role. The fact that batteries and electric vehicles are manufactured abroad is a minor disincentive to purchase.

Electric and hybrid vehicles are the two segments that are really driving new used vehicle registrations in France. In ****, **,*** electric cars were traded on the used market. Of these, the Renault Zoé accounted for the lion's share of registrations (***), which can make the purchase of an electric vehicle very attractive[***].

4.4 The new market in trouble, an advantage for the second-hand market?

Although the new car market saw some growth in ****, over the long term it is struggling to regain momentum, with only *% of households buying a new car each year in ****, compared with *% in the mid-****s[***].

Various factors are causing the new car market to experience difficulties, allowing the used car market to gain momentum, as shown by the O/N ratio, which has been steadily increasing for several years, as detailed in *.*.

A reminder of the effects of the pandemic

The confinement and closure of factories and dealerships during the *st confinement in **** caused damage to the automotive market, particularly for new vehicles (***).

New car prices and environmental standards:

In June ****, the average purchase price of a new car was €**,*** (***), an increase of *% on **** and over **% on ****, which continues to fuel the appeal of the used market[***]. Cars are increasingly equipped with pollution-control technologies to meet environmental standards, such as fine-particle filtering tools, but these devices are expensive and drive up prices. Electric and rechargeable hybrid models, which are more in line with these environmental standards, cost at least €**,*** more.

Even though regulatory changesand theintroduction of low-emission zones (***) are prompting the French to switch to newer, more environmentally-friendly models, there ...

5.1 The Conversion Bonus

The "Prime à la conversion" is a government subsidy designed to encourage the replacement of old vehicles. This aid is paid up to a limit of one per person until January*, ****, when purchasing a low-polluting vehicle if the old vehicle is sent for scrapping. The conditions for awarding the Conversion Bonus have changed since August ****.

The vehicle to be scrapped must meet the following conditions:

Have been *st registered before January **** if diesel is the main fuel or before January **** if the main fuel is not diesel ; Have been owned by the beneficiary for at least * year; Be registered in France in a normal series (***); Not be pledged; Not be considered as a damaged vehicle; Be handed in for destruction within the * months preceding or * months following invoicing of the new vehicle.

The new vehicle must meet the following conditions:

Electric car or van with CO* emissions of ** g/km or less; Passenger car or light truck with emissions < *** g/km classified as electric, Crit'air * or Crit'air *; Not be sold within * months of purchase or before *,*** km have been covered; Have an acquisition cost of no more than €**,*** incl. VAT.

Source: ****

5.2 Selling a used vehicle

Regulations governing the sale of used vehicles by professionals

Vehicles for sale must bear a visible label containing the following information:

Sale name: make, type, model, version, month and year of *stregistration; Total mileage covered, if this can be justified by the seller, or odometer reading with the words "not guaranteed"; Sale price including all taxes (***);

Before signing the sales contract, the buyer must be provided with a technical inspection report (***). This report must be less than * months old, and the buyer may refuse the sale on the basis of the report. It is a criminal offence to hand over a PV after purchase.

Regulations governing second-hand sales between private individuals

When buying directly from a private individual, the buyer must receive the following information from the seller:

Seller's name and address ; Receipt for cash payment; Certificate of sale in * copies; Book of maintenance invoices; Certificate of registration (***) crossed out with the words "vendu le... "+ seller's signature; Technical inspection report for vehicles over * years old.

Source: ****

6.1 Segmentation

• Leboncoin (Adevinta Group)
• ParuVendu.fr
• Aramis Auto Groupe
• Reezocar (Société Générale)
• Spoticar (Stellantis)
• La Centrale Groupe
• Carmax
• Carizy (Renault Groupe)
• Capcar
• Sonic Automotive
• Autotrader
• Simplicicar
• EWIGO France
• Autohero
• Alcopa Auction
• Renault Recyclage Flins
• Enchères VO
• Cazoo
• Auto 1 Vendezvotrevoiture.com
• Autobiz