The residual values (%RV) of used cars in Europe continued to decline in October 2024, reflecting a normalization in the market after the extraordinary highs of the past few years. Here's an overview of the key trends and insights from major European markets:

1. General Market Trends

• Decline in Residual Values: Across Europe, the %RV of three-year-old cars at 60,000km hit record lows in many countries, signaling ongoing market adjustment.
• Demand-Supply Shifts: Pandemic-induced shortages and heightened demand had inflated values. As those pressures subside, %RVs are stabilizing.
• Weakening Demand: Consumer demand is not matching supply, pushing values lower, with further declines projected for 2024 and beyond.
  

2. Country-Specific Insights

Switzerland

• Current %RV: 47%, down from 50.1% YoY.
• Fastest-Selling Cars: Petrol (77.8 days), while BEVs took the longest (111.3 days).
• Forecast: %RVs to drop further due to stable supply and declining demand.

Germany

• Current %RV: 49.9%, down from 56.2% YoY.
• Fastest-Selling Cars: PHEVs (53 days), while BEVs struggled (66.3 days).
• Powertrain Leadership: HEVs lead with 53.3% retention.
• Trend: Declines expected to moderate in 2025 and 2026.
  

Austria

• Current %RV: 50%, down by 3.4pp YoY.
• Top Performer: HEVs (55.5%), while BEVs lagged (42.6%).
• Selling Time: Diesel sold fastest (54.5 days); BEVs slowest (85.1 days).
  

France

• Current %RV: 54.2%.
• Pressure on BEVs: Prices falling due to limited demand and high costs.
• Positive Trends: Stabilizing values and improving transactions.

Italy

• Current %RV: 50.3%, down from 54% YoY.
• List Prices Surge: Up 7.7% YoY to €38,419, straining %RV.
• LPG Performance: Only powertrain with YoY growth in %RV.

Spain

• Current %RV: 58.8%.
• Stability: Despite challenges, values remain relatively robust compared to other markets.
• Fastest-Selling Models: Mini Countryman, Volkswagen T-Roc.

UK

• Current %RV: 51.6%, down 0.7pp MoM and 7.8pp YoY.
• Diesel Resilience: Retained 52%, above market average.
• Market Balance: Stable supply-demand dynamics and consistent dealer activity.
  

3. Powertrain-Specific Insights

• HEVs: Consistently lead value retention across most markets.
• Diesels: Still popular with used-car buyers despite declining favor in the new-car market.
• BEVs: Struggle with the lowest %RVs due to limited demand and higher costs.
• PHEVs: Moderate performance but challenged by high prices and limited demand.
  

Outlook

While residual values are falling, this correction reflects a normalization after unprecedented peaks. The decline is expected to moderate in the coming years as supply stabilizes and markets adjust to evolving consumer preferences, particularly regarding electrified powertrains.

Source: Autovista24