Spain Used Car Market Future Outlook And Projections: Ken Research

by Rati Ram Business Developer

What Is The Current Potential Of The Spain Used Car Market?

Spain used car market is at a growing stage due to potential to grow in the online space of the used car market. The Spain used car market in terms of GTV has increased at a positive CAGR of ~% during the review period 2013-2018. This growth was supported by increased new car sales and the government initiatives taken to push the new and used car market in the country. The increase in the used car sales has positively impacted the car parc in the Spain. The average ticket price has also increased by a single digit positive growth rate during the period 2013 to 2018. In addition, there has been a surge in the used car market in Spain due to an increase in the trade values. The used car sales volume experiences a CAGR of ~% during 2013 to 2018 in Spain.

The used car market was stimulated due to strong consumer confidence and rising business profit levels encouraged customers to replace vehicles more often. The used to new car ratio has been found around ~ in 2018. There has been an increasing trend in the car parc, having a CAGR of approximately ~ % during the period 2013 to 2018.

In 2016, the GTV of the Spain used car market dropped in 2016 due to decline in both new and used car sales. Economic uncertainty and the threat of a discriminatory new tax system will also slow the used car market in the country. The Spain used car market is at a growth stage. It accounts for a growth of approximately ~ % in terms of used car sales volume during the period 2013 to 2018.

Spain Used Car Market Segmentation

By Market Structure (Organized and Unorganized Market): The unorganized used car sector, which consists of the OEM-certified used cars and the multi brands used car dealerships, constitute a market share of roughly ~ % in terms of used cars sales volume across the region. The organized used car market is dominant in the overall used car space in Spain owing to the fact that the buying and selling experience is much better through dealerships as compared to among individuals. Organized sector provides high quality duly certified used cars which are carefully inspected and usually cause no discrepancies. They also offer the after sales services due to which the customers have started shifting towards the organized dealerships as compared to the unorganized dealers in the Spain.

By Age of Used Cars: In Spain, the used cars belonging to the age bracket 1 to 3 years capture the major chuck of the market share in terms of used car sales volume which is evaluated around ~ thousand units during 2018. People prefer this segment more often due to the availability of luxury used car at cheaper rates and relatively better quality. The least market share is being captured by the used cars which are between 3 to 5 years old.

What Is The Competition Scenario In The Spain Used Car Market?

The competition in the Spain used car market has been observed to be highly fragmented with a huge number of used car dealerships present in the Spain market. Competition in tier two and tier three cities is comparatively low in comparison to metropolitan cities of the Spain.

Parameters on the basis of which the used car dealerships compete are number of network chains, marketing initiatives, certification, margins, price, after sales services, lead generation, types of warranty, brand partnerships and number of dealers.

The OEM-certified dealers and multi brand dealers make up the organized space in the used car market which accounts around ~ % of the market share in 2018. The online website is more prevalent in the organized sectors for lead generation as compared to the unorganized sectors. The local dealers and the individual sellers together form the unorganized space in the overall used car market in Spain, which accounts approximately ~ % market share in the country, 2018. There are many local dealers, small garages and many individual sellers which forms the unorganized space, constituting approximately ~ % in the used car market in Spain.

Most of the lead generation of the used car is contributed from the offline dealership stores. About ~ % of the used car sales are being generated from the offline stores and only ~ % lead is generated from the online websites of the used cars.

Spain Online Used Cars Market

The digitization of the customer journey has also driven the emergence of multiple new digital players in the market. Organized dealers are in a strong position to benefit from growth in the used car market, supported by OEM involvement in marketing and certification programs, access to high-quality off-lease vehicles, online inventory pooling and a more professional image in the mind of the consumer.

Spain Used Car Market Future Outlook And Projections

In future, it is anticipated that Spain Used Car market in terms of GTV will increase at a double digit CAGR during the forecast period 2019–2023. The used cars sales volume is expected to augment to ~ Million in 2023E from ~ million used car sales volume in 2019. The availability of the financing and insurance options makes it convenient and easy for the customers and provides a pleasant experience to the buyers of the used car. The used car space is projected to increase due to increased number of dealerships, and more number of lead generations through the online portals. The increasing presence of online auto portals will ease transactions, causing higher C2C sales of used cars in the future.

Therefore, the used car market is expected to remain strong in the coming future in the country as compared to the new car sales. With the increasing population in the country and increased freedom given to the youth of the country, it is expected that the Hatchback or MUV’s will face huge transaction in the coming five years.

This increase will be possibly due to increase penetration of Hatchback (super minis) in the used car market in the Spain. The growth in the used car market is owing to the fact that there will be new entrants in the Spain and the existing brands will grow their footprint across the whole nation.

For information click on the below mentioned link:

Spain Used Car Market

France Used Car Market Outlook to 2023 – Surge in Demand for Rental Cars Backed by Increased Online Used Car Sales

Italy Used Car Market Outlook to 2023 – Led by Surge in Demand for Young Used Cars Coupled with Improved Quality and Inspection of Used Cars

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