Trends in Spain’s Used-Car Market: Younger Models and Hybrid Demand

The Spanish used-car market is experiencing a shift with the supply of younger vehicles increasing in recent months. This trend is explored in a new podcast episode featuring Ana Azofra, Autovista Group’s regional head of valuations for Southwest Europe and Poland, and Autovista24 editor Tom Geggus.

Despite Spain being known for having one of the oldest car parcs in Europe, the influx of younger models into the used-car market is a significant change for the country. This shift raises questions about other major trends in Spain’s used-car market and what can be expected in the future.

One key observation is the positive volume trends in Spain’s used-car market this year. Transactions have increased by 15% year on year in October, indicating a potential return to pre-COVID-19 pandemic levels. Additionally, the composition of models sold is changing, with vehicles over 10 years of age now accounting for 50% of used-car sales.

A notable trend is the increasing demand for full hybrid (HEV) powertrains in the market. While plug-in hybrids (PHEVs) have seen a more negative performance, Spain remains a strong sales destination for these vehicles. Incentive programs, such as the MOVES III package, have contributed to the growth in demand for PHEVs and battery-electric vehicles (BEVs).

Looking ahead, BEVs are expected to see a downward price adjustment trend by the end of 2024, driven by fleet offloading and CAFE regulations. The PHEV market is forecasted to remain dynamic, with advancements in technology impacting residual values. Demand for HEVs is expected to continue growing, with stable prices likely to peak towards the end of the year.

Overall, the evolving trends in Spain’s used-car market indicate a shift towards younger, more technologically advanced vehicles. As the market continues to adapt to changing consumer preferences and regulatory requirements, it will be interesting to see how these trends shape the future of the automotive industry in Spain.