Buying a new car, in especially the electric one, costs too much? Luckily there are used cars. second-hand car market in Italy is experiencing a boom, with impressive numbers that outline a preference among Italians towards this type of purchase.
According to the Unrae data (National Union of Foreign Vehicle Representatives), in the first nine months of 2023, i ownership transfers of used cars have exceeded 3,6 million, more than triple the registrations of new cars, which amounted to 1,177 million. An increase of 8,1% compared to the same period in 2022.
The growing interest of Italians in used cars can be attributed to various factors, let's see what they are.
New cars cost too much
One of the main reasons is the average cost of new cars, which in 2022 was estimated at around 26.200 euros by the Fleet & Mobility Study Center. A figure that has undergone a significant increase over the years, considering that ten years ago it was 18.031 euros.
“The biggest problem – second Adolfo De Stefani Cosentino, president of Federauto (Italian Federation of Car Dealers) “derives from the fact that today only a couple of models are available at prices of less than 15 thousand euros, compared to dozens of a few years ago, and the cost of the most popular small car has almost doubled".
Furthermore, a stagnant average national income and purchasing power eroded byinflation, (only recently decreasing), force a large part of Italians to move towards the used car market.
We are buying older and older cars
The Unrae statistics highlight another characteristic of the second-hand market. That is, beyond the 50% of ownership changes it concerns cars more than ten years old with 15,6% being aged between 6,1 and ten years. A countertrend compared to the ecological transition objectives set by Italy.
“Cars which, in a country embarking on the ecological transition, should largely be scrapped but which, on the contrary, still perform an essential social function” explains De Stefani Cosentino.
“You sell and buy what is available and the Italian reality is made up of a fleet on the road with an average age of over twelve years and 47% corresponding to the maximum Euro 4 approval” he comments Andrew Cardinals, general manager of theUnrae.
The profile of used car buyers reflects people who they can't afford new cars and they often turn to other private individuals for the purchase. A way to save and overcome the constraints placed on professionals in the sector who are obliged by the Consumer Code to provide a guarantee of at least one year on the cars sold.
Diesel cars are the best sellers
The people involved in this used car market, according to Cardinali "belong to those two thirds of the Italian population who do not live in large metropolitan areas, but live in small towns, countryside or isolated localities, where even a car with many years on its back satisfies primary mobility needs and does not meet the traffic restrictions imposed for environmental reasons in major Italian cities".
And with this profile they are the diesel cars to be the most popular. Used Euro 5 diesel vehicles, which are difficult to sell in large urban centers due to environmental restrictions, can enjoy a second life in other regions of Italy, where the problem of air pollution is less relevant. So the 48,1% of property transfers concerns, in fact, diesel car, 38,9% petrol ones and 5,1% full hybrids.
There is still no market for used electric cars
A second hand market where still electric cars do not appear, cars could play an important role in the ecological transition.
Second-hand electric cars represent just that 0,5% of trades, a quota that takes into account the zero kilometers registered by dealers to achieve sales objectives.
A curb the purchase of second-hand zero-emission cars are common concerns such aslimited autonomy, poor network charging in Italy and the rrapid technological obsolescence. Anxiety related to rapid technological obsolescence, similar to what is experienced with smartphones, contributes to keeping demand for used electric cars low.
