At the end of 2024, the residual values (%RV) of used 36-month-old cars with 60,000 km mileage in Europe continued to decline, reflecting market normalization after the unusual conditions of previous years. In key European markets such as Austria, Germany, Italy, Spain, and Switzerland, December recorded the lowest %RV levels of the year. Only the United Kingdom saw a slight %RV increase, though it remained lower than at the end of 2023.
Countries and their %RV changes
- Switzerland: 36-month-old cars retained 46.4% of their original price in December, compared to 49.5% a year earlier.
- Austria: %RV dropped to 47.7%, a 5.3 percentage point decline over the year.
- Italy: Values fell by 4 percentage points to 48.7%.
- Germany: %RV decreased to 49.6% compared to 54.1% in December 2023.
- United Kingdom: %RV increased to 51% from the lowest point of 50.1% in July but remained below 55.6% a year earlier.
- France: 36-month-old cars retained 53.9% of their original price.
- Spain: %RV reached 58.7%, though this was a 2.6 percentage point decline over the year.
These changes indicate that Europe’s used car markets are returning to a more typical state after disruptions caused by the COVID-19 pandemic. During the pandemic, new car production was limited, leading consumers and businesses to hold onto their vehicles longer, reducing the supply of used cars and driving up prices. Now that new car supply is recovering, the used car market is seeing more availability, leading to declining %RV values.
Forecasts for 2025
In 2025, used car %RV is expected to continue declining, albeit at a slower pace. For instance, in Austria, a 2.2% %RV decline is projected by the end of 2025, with an annual decline of 1.1% expected in 2026. These changes are linked to weakening demand and stable supply in the market.
- Diesel cars: In Austria, they remain the fastest-selling vehicles, averaging 60.1 days on the market.
- Hybrid cars (HEV): In France, their %RV remained stable, while selling time decreased by nearly four days, indicating consistent popularity.
- Plug-in hybrids (PHEV): While their %RV is declining, newer models with greater range may help sustain their value.
- Electric vehicles (BEV): This category experienced the steepest %RV decline, with the longest selling times, particularly in France, where Tesla models sell the fastest while other brands face challenges.
In summary, at the end of 2024, Europe’s used car markets experienced a decline in residual values, reflecting market normalization after pandemic-induced disruptions. This trend is expected to continue in 2025, albeit at a slower pace.
Prepared according to Autovista24.
