Thursday, November 21, 2019

Used Car Space in Germany Driven by Increasing pool of Online Used Car Dealers along with Surge in Online Listings: Ken Research

Analysts at Ken Research in their latest publication Germany Used Car Market Outlook to 2023 - Led by Surge in Multi-Brand Dealerships Coupled with Improved Quality and Inspection of Used Carsbelieve that the used cars industry in Germany has been growing and is expected that it will expand further owing to the entrance of used car dealerships in the country, better services provided by the dealerships such as car financing, insurance, inspection and others, rising number of online used car companies and others. The market is expected to register a positive CAGR of 1.3% in terms of sales volume of used cars and 4.4% in terms of Gross Transaction Value (GTV) during the forecast period 2018-2023F.



“Amplified geographical expansion model by the used car dealerships and the shift towards the online space market portals have driven the growth of used car market in Germany.”

Surge in the Used Car Listings on Online Portals: The entrance of online used car companies in Germany has led to an increase in number of used cars listings on these portals. To tap a larger market in the used car industry, dealerships have penetrated in the online space by listing the used cars on the online platforms. The customers get a wide pool of used car variants on online portals where they can compare and research for themselves that which used car they want to purchase. These portals perform as a platform where the buyer and the seller of the used cars can meet; it can be a private seller of a used car dealership.

Emergence of Organized Used Car Dealer: The organized sector of the Germany used car industry was observed to dominate the market in the year 2018 and is anticipated to grow with a CAGR of 5.3% during the forecast period 2018-2023F. Factors such as rising population, declining new car sales, increased preference for younger used cars, certified used cars, and better services provides by the dealerships and others have led to the entrance of both multi-brand and OEM Certified dealerships within Germany. These multi-brand car dealerships have also started to expand in different regions of the country to tap a larger market of the country and increase their sales volume.

Lucrative Interest rates provided by the Used Car Dealerships: A significant number of German customers have inclined towards the purchase of used car from a dealership which provides financing and insurance facilities to ease their payment process. Dealerships such as Hey car, Mobile.de, Autoscout24 and others have started to provide the car financing options to the customers to ease their purchase of a used car. Financing provided by the dealerships has been gaining traction owing to the low interest rate they provide on the used cars which is around 5.5% to 7.2% for a period of 12-84 months. Whereas, Personal loans from regular banks have a high rate of interest of around 8.5% to 12.0% for a period of 12-72 months.

Germany used car dealerships were not providing the financing options in the past few years as their primary focus was on the sale of the used car, owing to which the customers had to finance their used cars from banks which charged huge interest rate. With the availability of car financing options at the dealerships over the years has eased the purchase of a used car in Germany for the customers.

Key Segments Covered
By Type of Market Structure:
Organized Market:
Multi-brand Dealerships
OEM Certified Dealerships
Unorganized Market
Customer to Customer
Online Sales
Local Dealers

By Car Make:
Volkswagen
Opel
Mercedes
BMW
Ford
Audi
Renault
Skoda
Fiat
Peugeot

Others (Seat, Hyundai, Toyota, Nissan, Mazda, Citroen, Smart, Kia, Mini, Volvo, Mitsubishi, Suzuki, Honda, Dacia, Porsche, Chevrolet, Alfa Romeo, Jeep, Subaru, Land Rover, Chrysler, Jaguar, Daihatsu, DS, Saab, Lancia, Lexus, MG Rover, Ssangyong, Sachsenring, Dodge, Iveco, Ferrari, Maserati, Cadilac, Infiniti, Tesia, Austin and few more.)

By Year of Ownership:
<2000
2000-2002
2003-2005
2006-2008
2009-2012
2013-2018

By Kilometers Driven:
Less than 5,000
5,000-20,000
20,000-50,000
50,000-80,000
80,000-120,000
Above 120,000

By Type of Used Cars:
Economy/Hatchback
MPV’s/Sedan
SUV’s

Key Target Audience
Offline Dealers
Online Portal
Organized Multi Brands Dealers
OEM Certified Dealerships
Online Portal
Private Equity and Venture Capitalist
Industry Associations
OEM Manufacturers
Automotive Manufacturers
Car Auction Companies

Time Period Captured in the Report:
Historical Period - 2013-2018
Forecast Period – 2019F-2023F
Companies Covered:
Online Dealerships:
Autoscout24
Mobile.de
Hey Car
Auto.de
True Car
BCA
Webauto.de

Offline Dealerships:
Emil Frey Group
AVAG Holding SE
Dello-Durkop-Hansa-Group
Feser-Graf-Group
Senger Group
Weller Group
Gottfried Schultz
Tiemeyer Automobile Group

Key Topics Covered in the Report
Germany Used Car Market Introduction
Business Model Prevalent in Germany Offline Used Cars Market
Germany Used Car Market Size
Germany Used Car Market Segmentation
Snapshot on Germany Used Car Auction Market
Decision Making Process for Buying and Selling Used Cars
Trends and Development in Germany Used Car Market
Issues and Challenges in Germany Used Car Market
Snapshot on Germany Online Used Cars Market
Government Regulations in Germany Used Car Market
Competition Scenario in Germany Offline Used Cars Market
Germany Used Car Market Future Outlook and Projections, 2019-2023F
Analyst recommendations
Success Case Studies in India Used Car Market-OLX

For more information on the research report, refer to below link:

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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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