AUTONEWS

Used car market in Europe: Prices are rising, but electric models are rapidly losing value

Serbia recorded a slight increase in sales of imported used cars of 6.5% in the first four months of 2025. However, increased interest from buyers is also accompanied by an increase in prices, and judging by the information coming from Europe, the same trend is present in almost all major markets. The website Polojna automobili investigated why the price of used cars in the European Union is increasing, which models are most interesting to buyers and what are the expectations for the coming period.

The latest data from relevant European reports indicate that the used car market in the EU, in terms of sales results, is at almost the same level as in 2024. Specifically, according to data from the well-known website Autovista24, in the first quarter of 2025 the number of used cars sold increased by 0.6% compared to the first quarter of last year, which is about 1.64 million units. Buyers are still mostly opting for models with gasoline or diesel engines, while electric second-hand cars are recording a significant drop in value and are selling much more slowly.

Second-hand cars are increasingly in demand - prices are rising across Europe...At the same time, according to data from AUTO1 Group and their price index, in April this year the average value of used vehicles increased by 2.8% compared to the same month last year, which is the highest monthly jump since June 2023. Since the beginning of the year, according to their data, prices of second-hand cars in Europe have increased by an average of about 5%.

As added in the analysis of Auto1 Group, the increase in prices of second-hand cars is the result of several factors. First of all, one of the main reasons is the increase in the price of new vehicles, but also the continued demand for used cars. The largest price increase was recorded for economical compact class models, while the situation is somewhat more stable for SUV models. Electric vehicles, on the other hand, although increasingly numerous in the offer, still record a mild increase in prices due to weaker demand and buyers' doubts about their long-term value.

Vehicle value decline in April...It is important to note that according to the report of the Autovista24 portal for April 2025, the residual value of used vehicles - that is, the value of a car after three years of use - continues to decline across Europe. In Austria, for example, it fell to 47.7%, in Germany to 47.6%, while in Switzerland it was only 43.7%. The data on electric used cars are particularly interesting: in Switzerland, used cars up to three years old retained only 38.2% of their initial value, and in Germany 37.3%. In contrast, hybrid vehicles show greater resilience, with values ​​​​around 49% in both countries.

Old cars still dominate...A detailed study of the used car market in the EU was recently conducted by the Joint Research Centre of the European Commission (JRC). The data obtained indicate that the majority of used vehicles changing hands in the EU are between 8 and 15 years old. This research also confirmed that older diesel vehicles are still the most common in traffic, especially in Central and Eastern European countries.

The West exports - the East buys...Also, one of the key trends in 2025, according to research by the European Commission, is the strong presence of cross-border trade in used vehicles. Namely, a large number of cars are still exported from Western Europe, primarily Germany, France and Belgium, to countries such as Romania, Poland, Bulgaria and Hungary, but also to the Balkan markets, including our country. In this chain, cars that no longer meet environmental or technical standards in the exporting countries find a "second life" in markets where the purchasing power of the population is lower. Let us recall that over 130,000 used cars are imported into Serbia every year.

Expectations for the coming period...The used car market in the EU remains crucial for millions of citizens. While new technologies, stricter regulations and efforts to reduce emissions from traffic are shaping the future of motoring, good old used cars will not leave European roads for a long time.

For the domestic market, these trends also mean new challenges - because it is realistic to expect that if the price increase trend in Europe continues, our customers will also feel these negative effects, especially if other costs are taken into account when importing used cars, such as transport costs, freight forwarding services and "internal" duties (environmental tax, vehicle testing, etc.). However, one thing remains certain: the demand for reliable used vehicles is not decreasing.

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