Segment: Aftermarket

List prices of new cars climbed higher in July. Meanwhile, the supply and demand of used models fell. But how are these factors impacting European residual values (RVs)? Tom Hooker, Autovista24 journalist, reviews the data with Autovista Group experts.

In an ongoing trend, average new-car list prices continued to rise in July across major European automotive markets. This metric rose month on month and year on year in Austria, France, Germany, Spain, Switzerland, and the UK.

France recorded the largest year-on-year increase of 9.2%, while also observing the biggest monthly list price growth of 3.3%. This was followed by Austria, which saw an 8.8% uptick compared with July 2024.

Spain, Switzerland, and Germany also recorded significant list price increases of 8.2%, 7.1% and 6.7% respectively. The UK posted a 4% rise while Italy saw a 1.8% growth. But what happened with other key market metrics?

Declining supply and demand

In another continuing trend, used-car supply continued to fall year on year across Europe. The active-market volume index (AMVI) of two-to-four-year-old cars saw the biggest advert slump in Spain, down by 43.6%.

Italy was the only other country to record a double-digit AMVI decline, with an 11% drop. Conversely, the UK and France saw used-car volumes remain stable compared to other markets, declining by 4.1% and 1.6% respectively.

Compared to July 2024, the sales-volume index (SVI) also fell across all seven observed markets. This was except for France, which posted a 3.7% increase. On the other hand, Spain suffered a 36.8% drop in demand. Double-digit SVI declines were also seen in the UK and Germany, down by 24.3% and 19.1% respectively.

Residual values impacted

So, how do these trends affect RVs? Rising new-car list prices can cause more people to turn to the used-car market. This creates more demand, which means absolute RVs can go up on average. These values did increase year on year across almost every market, apart from Italy and Spain.

However, new-car list prices are far from the only factor influencing values. RVs presented as a percentage of retained new-car list price (%RVs) declined across all seven of the observed markets.

In countries like Germany and the UK, the SVI saw a greater year-on-year drop than the AMVI. This indicates demand fell faster than supply, which can put pressure on RVs as buyer interest weakens. So, %RVs may have suffered an even steeper fall without list prices increasing.

Switzerland suffered the strongest year-on-year %RV decline of 5.1 percentage points (pp). Italy and Spain endured notable decreases of 4.2pp and 4pp, respectively. Meanwhile, %RVs were down by 3.5pp in France, 2.8pp in Austria and 1.6pp in Germany. Percentage values in the UK dropped by 1pp.

Austria’s decreasing demand

The SVI in Austria decreased slightly in July, after a strong increase in June. The number of observed sales decreased by 1.8% compared to the previous month and recorded a decline of 9.2% year-on-year.

‘The AMVI of two-to-four-year-old passenger cars showed a similar trend in July. The supply volume of passenger cars in this age bracket was down by 1% from June and by 5.7% compared to one year ago,’ said Robert Madas, Autovista Group’s regional head of valuations.

The average amount of time needed to sell a used car decreased slightly in June to 67.6 days. Diesel vehicles continued to be the fastest-selling powertrain, taking 59.6 days to sell on average last month. This was followed by plug-in hybrids (PHEVs) at 69.5 days, petrol vehicles at 70.6 days and battery-electric vehicles (BEVs) at 80.3 days.

The technology saw a significant improvement in turnaround rates. These models left dealerships 4.4 days faster than June and 6.1 days quicker than July 2024. Full hybrids (HEV) took the longest amount of time to sell in July at 81.3 days.

The %RVs of 36-month-old cars at 60,000km decreased slightly to 48.3% on average last month. This was a 0.5 pp drop compared to June but a 2.8pp decline from July 2024.

‘HEVs retained the greatest amount of trade value in July at 52.5%, followed by petrol cars at 50.4%. Then came diesel models with 49% and PHEVs with 45.8%. BEVs held the lowest %RV once again, at 39.6%,’ Madas outlined.

%RVs are expected to decrease in the coming years, but at a slower pace. This is due to weakening demand and unwavering supply. By the end of 2025, %RVs are forecast to fall by 0.2%. In 2026, a slightly bigger year-on-year drop of 0.7% is predicted.

RV stability in France

Average RVs of 36-month-old cars at 60,000km in France were relatively stable last month.

‘This comes as list prices increased from the previous month. More importantly, list prices have risen by 9.2% year on year. This means that new vehicles from 2021 were cheaper than those from 2022,’ explained Ludovic Percier, Autovista Group’s senior RV analyst for France.

The absolute trade RVs of petrol-powered cars were stable in July, performing in a similar way to the overall market.

Diesel’s absolute trade values rose marginally in July, while models spent more days in stock on average. However, the powertrain still sold quicker than petrol vehicles.

Despite recording higher absolute RVs and list prices compared to petrol-powered cars, diesel %RVs were nearly identical to their internal combustion engine (ICE) sibling.

‘Hybrid RVs grew month on month in both percentage and absolute terms. This performance contrasts with a recent period of stagnation and very slight declines. HEVs were the fastest-selling powertrain in July. Even though some petrol vehicles were quicker to sell, overall, HEVs behaved better,’ he noted.

Struggling PHEVs

Conversely, PHEV RVs have fallen, while the technology is spending an increasing amount of time in dealerships on average. The smallest and cheapest PHEVs are the easiest and quickest to sell. The supply of used PHEVs is exceeding demand. This has caused the powertrain to suffer %RV declines over the last few months.

BEV absolute trade RVs increased in July. However, all-electric vehicles were the slowest-selling powertrain this month. BEVs needed a turnaround time of 86.9 days on average, up by 3.6 days from June.

‘Demand in France is unbalanced for BEVs between the new and used-car markets. This is due to incentives and tax benefits only applying to new car buyers. Used car buyers are not willing to pay such a high premium compared to ICE models,’ said Percier.

Higher ranges have helped to maintain RVs. However, rising prices have had a huge impact on values. Social leasing, café regulation and fleet buyers have led to low BEV RVs. However, this situation has improved compared to when Tesla and BYD operated huge discounts on their vehicles.

Germany’s consistent supply

Following a strong increase in June, used-car demand in Germany fell during July. Compared to the previous month, this metric was down 6.3%. The result also marked a significant decrease of 19.1% year-on-year.

Meanwhile, the supply of two-to-four-year-old passenger cars remained stable compared to June. However, the AMVI of passenger cars in this age bracket dropped by 7.2% compared to the previous year.

‘The average number of days needed to sell a used car remained stable at 59.9 days in July. Diesel models sold the fastest at 57.3 days, closely followed by HEVs at 57.6 days. PHEVs took 58.6 days to leave dealerships, trailed by petrol cars at 61.3 days, while BEVs took 62.6 days to sell,’ stated Madas.

%RVs of 36-month-old cars at 60,000km showed another slight increase in July. Models held an average %RV of 48.3%. This was a 0.1pp increase compared to June but a 1.6pp decrease year-on-year.

‘Petrol cars led the market with a %RV of 49.8%. Then came diesel cars at 49.3% and HEVs at 48.8%, followed by PHEVs at 43.2%. BEVs again retained the lowest level of value at 37.2%,’ he said.

Although RVs have stabilised recently in Germany, demand remains weak. RVs can be expected to remain under pressure. In 2025, %RVs are forecast to decrease, down 2.7% when compared with December 2024. Pressure will probably ease in 2026, with RVs forecasted to suffer a smaller decline of 1.4%.

Italy’s values stay on trend

The average %RV of 36-month-old vehicles at 60,000km showed a year-on-year drop of 4.2pp in July. This confirms a downward trend, as already observed in previous months. The figure was also 0.8pp down compared to last month. This pace of decline was broadly consistent with what has been seen across the first half of 2025.

‘All fuel types show a sharp decline compared to last year. It is worth noting that LPG-powered vehicles were the least affected, with a drop of 1.5pp in %RVs. This confirmed renewed buyer confidence, supported by the stabilisation of fuel prices,’ said Marco Pasquetti, Autovista Group’s head of valuations for Italy.

Conversely, the sharp decline continued for BEVs and PHEVs, down 4pp and 6.5pp respectively. The two technologies are still struggling to gain significant market share. However, it is fair to point out that new-car sales data for these powertrains are on the rise, offering hope for the future,’ he highlighted.

The average selling times of two-to-four-year-old used cars have increased compared to last month, reaching 60.4 days. BEVs took the longest time to sell, needing 72.9 days to leave dealerships.

On the other hand, LPG remained the fastest-selling powertrain, with a turnaround rate of just 40.8 days. Overall, the fastest-selling models in July were both from Dacia, with the Sandero averaging 30.9 days in stock and the Duster 33.3 days.

An RV drop of 8.5% is forecasted for the end of 2025. Further declines are also projected in the coming years, albeit at a slightly slower pace.

Switzerland’s supply slump

After a marginal month-on-month increase in June, used-car demand fell in Switzerland during July. The number of sales observed decreased by 0.3% compared to June. Year-on-year, the SVI was down by 8.5%.

‘Meanwhile, the AMVI of two-to-four-year-old passenger cars increased slightly by 0.9% in July compared to the previous month. However, the supply volume of passenger cars in this age bracket slumped by 8.8% compared to the previous year,’ explained Madas.

%RVs of 36-month-old cars at 60,000km dropped again in July, falling from 42.8% in June to 42.4%. The year-on-year decline was more severe, down 5.1pp from the values recorded 12 months ago.

‘HEVs retained the most value in July by far at 47%. Then came petrol cars at 43.9%, diesel models at 41.7% and PHEVs at 39.9%. BEVs continued to be the worst-performing powertrain. All-electric cars held only 36.4% of their original list price,’ he stated.

July saw two-to-four-year-old passenger cars sell slightly slower than in June, taking 78.5 days to sell on average.

HEVs sold fastest at 71.6 days, followed by diesel cars at 71.9 days, petrol cars at 78.3 days and BEVs at 82.8 days. Meanwhile, PHEVs needed the most time to sell at 87.6 days on average.

A trend of relatively stable supply and low demand will continue as various uncertainties shroud 2025. Values are expected to decrease in the coming years, but at a slower pace. By the end of 2025, %RVs are expected to decrease by 4.2% compared to December 2024. In 2026, a lower year-on-year drop of 1.5% is expected.

Seasonal softening in the UK

‘The UK’s used car market experienced a seasonal softening in July, with retail activity slowing and vehicle values edging downward,’ commented Jayson Whittington, Autovista Group’s regional head of valuations, UK.

‘The average three-year-old car retained 49.1% of its original cost new price last month, a decline of 1.5pp from June and 1pp lower than the same period last year. This level of depreciation is typical during the summer months, when consumer attention often shifts away from vehicle purchases,’ he explained.

Sales activity fell by 5.9% compared to the previous month, while the SVI was down 24.3% year-on-year. This decline in demand has led to a slight increase in available inventory, with the AMVI indicating 1.2% more cars for sale on dealer forecourts. Despite this uptick, stock levels remain 4.1% lower than in July 2024.

Fuel type influences values

Fuel type continues to influence residual values. Petrol vehicles retained 50.2% of their original cost new price, down 1.7pp from June. Diesel cars held slightly stronger at 52%, showing a modest year-on-year gain of 1.2pp. This was likely due to the declining supply of this once-dominant fuel type, which slumped by 36.6% year on year.

Hybrids retained 52.9% of their list price, the best %RV performance of any powertrain. Meanwhile, the average PHEV %RV dropped to 47.8%. BEVs remained the weakest performers, holding just 35.3% of their original value.

Despite sales activity cooling, dealers needed an average of 37.4 days to sell a used car, almost unchanged from June. Petrol cars sold in 36.9 days on average, while hybrids need the shortest amount of time to sell at 33.4 days.

PHEVs had an average turnaround rate of 39.4 days. BEVs took 39.1 days to leave dealerships and diesels were the slowest seller at 41.8 days.

‘The used car market continues to demonstrate underlying stability, with current trends largely reflecting typical seasonal fluctuations. Glass’s anticipates no major disruption to the UK’s supply and demand dynamic throughout the rest of 2025. A modest year-on-year RV decline of approximately 3% is projected by December,’ Whittington concluded.

Residual values (RVs) suffered yet another drop across major European used-car markets in June. But is this trend expected to continue in the second half of the year? Autovista24 journalist Tom Hooker explores the topic with Autovista Group experts.

Average RVs of used cars after 36 months and 60,000km, expressed as a percentage of original list price (%RV), fell again across major European markets in June. Switzerland, Italy, Spain, France, Austria, Germany and the UK all saw values drop year on year, continuing a declining trend.

Used-car values in Austria were down by 2.5pp to 48.8%, as Germany recorded a %RV of 48.2% after a 1.7pp fall. The UK was the most resilient market, dropping by 1pp to 50.5%.

Switzerland suffered the largest fall compared to June 2024, with %RVs dropping by 4.7 percentage points (pp) to 42.8%. Italy also endured a steep decrease, falling by 4.4pp to end the month at 47.9%. %RVs in Spain sat at 55.5% after declining by 3.7pp, while France saw a 3.5pp drop to 52.5%.

Negative European RV outlook?

Unfortunately, this trend is not expected to slow down this year. %RVs are forecast to keep falling over the next three years in all seven of the observed European used-car markets. However, these declines vary across each country.

Italy is predicted to see the largest drop in values out of the seven markets in 2025. Values are expected to drop by 8.2% by the end of the year. In 2026 and 2027, significant declines are also predicted, with %RVs projected to fall by 5.6% and 5% respectively.

Switzerland is also forecast to suffer a significant drop in 2025, with a predicted fall of 4.2%. This is expected to ease over the next two years, with decreases of 1.5% and 0.4% in 2025 and 2026, respectively.

On the other hand, %RVs in Austria are forecast to remain relatively resilient. A 0.2% fall in 2025 is predicted, followed by a 0.7% drop in 2026 and a 0.6% decline in 2027. Spain is expected to see steady values, with a 1.4% decrease forecast this year. This will drop will change marginally to 1.3% in 2026, then 1.2% in 2027.

Rising European list prices

Despite the drop in residual values, rising list prices are counterintuitive to this current trend. This is because buyers currently need to pay more for a new car, meaning some people will turn to used cars. In turn, this increases used-car demand, pushing prices up and supporting their value creation.

The most significant rise was recorded in Austria, which saw this metric grow by 8.4% year on year. Germany and Spain recorded a 6.9% and 6,8% increase in list prices, respectively. France also posted significant growth of 5.5%. List prices in the UK were up by 4.9% and Switzerland recorded a 4.8% rise.

Italy was the only country to see stable list prices compared to one year ago, with this metric falling slightly, by 0.6%.

Falling European supply

Another trend which is still somewhat RV-stabilising, considering the pressured economic environment, is falling European supply. If supply decreases but demand remains relatively consistent, buyers must compete for a smaller pool of models.

This competition can drive prices and residual values upwards. This was not the case in Italy, where the AMVI improved by 16.1% year on year. Aside from this instance, all other observed countries endured a decline.

The steepest drop by some distance was recorded in Spain, with used-car adverts down by 45.4% compared to June 2024. Switzerland also suffered a notable AMVI decrease of 10.5%.

France saw supply fall by 8.4% year on year, followed by the UK, which posted a 7% drop. Then came Austria with a 4.8% decline, as used-car supply in Germany decreased by 2%.

Demand grows in Austria

‘The sales-volume index (SVI) in Austria increased in June, after a double-digit drop in May. The number of observed sales increased by 11.9% compared to the previous month and by 7.1% compared to June 2024,’ noted Robert Madas, Autovista Group’s regional head of valuations.

The AMVI of two-to-four-year-old passenger cars remained stable in June compared to May. On the other hand, the supply volume of passenger cars in this age bracket was down by 4.8% compared to the previous year.

The average amount of time needed to sell a used car increased slightly to 68.3 days. Diesel vehicles continued to be the fastest-selling powertrain, taking 59 days to sell on average. This was followed by full hybrids (HEV) at 64.7 days, plug-in hybrids (PHEVs) at 64.9 days and petrol vehicles at 75.7 days. Battery-electric vehicles (BEVs) took the longest amount of time to sell at 84.7 days.

Overall %RVs increased to 48.8% on average last month. This was a 1.5pp increase compared to May but a 2.5pp decrease from June 2024.

HEVs retained the greatest amount of trade value in June at 53.1%, followed by petrol cars at 51.2%. Then came diesel models with 49.3% and PHEVs with 46.1%. BEVs again held the lowest amount of value, at 39.8%.

‘%RVs are expected to decrease in the coming years, but at a slower pace. This is due to weakening demand and unwavering supply. By the end of 2025, %RVs are forecast to decrease by 0.2%. In 2026, a slightly bigger year-on-year drop of 0.7% is also predicted,’ he outlined.

EVs heavily impacted in France

Across the first half of 2025, BEVs and PHEVs have been the most impacted technology in France’s used-car market.

Used-car volume increased slightly in June. However, this was still below pre-COVID-19 levels. Advertising prices have decreased since the beginning of the year. But it still needs to decrease more to help the average days to sell drop.

Petrol %RVs continued to be stable last month, while the quickest sales came from low-cost and small cars. Diesel-powered vehicles remained stable again. This was helped by a lower volume on the new car market, with fleets transitioning to other powertrains, such as HEVs and BEVs.

‘Many new-car buyers in France have transferred from PHEVs to HEVs as the latter technology is cheaper. In turn, this increases volumes on the used car market,’ explained Ludovic Percier, Autovista Group’s senior RV analyst for France.

In June, HEVs recorded a marginal %RV decline, as more expensive vehicles are entering the used-car market. These models do not hold value as well as the first hybrid vehicles. Yet, HEVs were the quickest powertrain to sell this month.

PHEV values were stable in June after a long period of marginal decreases. The technology’s used-car supply is higher than demand. This caused the powertrain to suffer RV declines over the last few months.

‘New PHEV models are now coming with better electric-only ranges and more premium models. This helps to stabilise RVs. List prices on the new-car market remain high, which explains the powertrain’s significant drop in values in the past months,’ he said.

BEVs combat declining RV trend

BEV values increased in June. However, this was because more of the all-electric vehicles sold belonged to the premium sector. These vehicles can retain values comparatively well. However, BEV models took the longest time to sell in June, taking 84.1 days to sell on average, up by 4.3 days on May.

‘BEVs have endured a decreasing RV trend for two years now. In contrast, new-car buyers are willing to pay for BEVs, even if the vehicle is more expensive than internal combustion engine (ICE) models. This is due to tax purposes that benefit companies and employees with company cars,’ highlighted Percier.

However, used-car buyers do not benefit from any similar advantage. So, they are not willing to pay such a high premium compared to ICE vehicles.

Higher driving ranges have helped to maintain RVs but rising prices have had a huge impact on values. Social leasing, Corporate Average Fuel Economy (CAFÉ) regulation and fleet buyers have led to low RVs on this powertrain. However, the situation improved compared to a period when Tesla and BYD operated large discounts on their vehicles.

Germany’s increasing demand

Following a significant decrease in May, Germany’s SVI showed a strong increase in June. Compared to the previous month, this metric was up by 11.8%, and by 3.2% year on year.

‘Meanwhile, the AMVI of two-to-four-year-old passenger cars improved slightly compared to May, with a 4.9% rise. The supply volume of passenger cars in this age bracket dropped by 2% compared to the previous year,’ outlined Madas.

The average number of days needed to sell a used car increased by two days to 60 days in June. Diesel models sold the fastest at 56.2 days, followed by PHEVs at 57.9 days. Then came HEVs at 60.2 days, trailed by petrol cars at 61.6 days, while BEVs took 64.7 days to sell.

The %RVs of 36-month-old cars at 60,000km showed another increase in June. Models held an average %RV of 48.2%. This was a 0.4 percentage point (pp) increase compared to May but a 1.7pp decrease year on year.

Petrol cars led the market with a %RV of 49.9%. Then came diesel cars at 49.1% and HEVs at 49%, followed by PHEVs at 42.9%. BEVs again retained the lowest level of value at 37.1%.

‘Although RVs have stabilised recently, demand remains rather weak. Therefore, RVs can be expected to remain under pressure. In 2025, %RVs are forecast to decrease, down 2.7% when compared with December 2024. Pressure will probably ease in 2026, with RVs forecasted to decline by 1.4%,’ he stated.

RVs drop in Italy

The decline in RVs for three-year-old vehicles continued as expected, down 4.4pp in June compared to one year ago. RVs also suffered a 0.2pp drop compared to May, although this was mostly due to seasonal factors.

There was a slight improvement in the average number of days it takes to sell a used vehicle. Models left the forecourt 1.3 days quicker on average when compared to June 2024.

BEVs saw a significantly steeper RV drop than the overall average, falling by 4.8pp year on year. This trend has remained over the last few months. PHEVs also saw values slump, down by 6.7pp, however, a slight slowdown is beginning to emerge for both technologies.

‘Last month, the year-on-year gap was even wider, so we expect the decline to stabilise by December. BEVs are forecast to endure a drop of 9.9%, while PHEVs are predicted to see RVs fall by 9.1%,’ said Marco Pasquetti, Autovista Group’s head of valuations for Italy.

There are no major surprises from petrol and diesel vehicles, which continue to make up the core of the country’s used car market.

‘In particular, diesel still holds the largest market share and retains residual value better than any other fuel type. This is despite restrictions in many major Italian cities. The fuel type recorded an average RV of 52.4% in June, well above the market average of 47.9%,’ noted Pasquetti.

Although RVs were down across all vehicle types, it’s worth noting that LPG-powered cars were the fastest to sell, taking just over 40 days on average. Furthermore, the powertrain’s top performers sold in under a month.

Switzerland’s stable supply

After a decrease in May, the SVI increased marginally in Switzerland last month. The number of sales observed increased by 4% compared to May. Year-on-year, the SVI was down by 0.9%.

Meanwhile, the AMVI of two-to-four-year-old passenger cars remained almost stable in June compared to the previous month. However, the supply volume of passenger cars in this age bracket slumped by 10.5% compared to the previous year.

Values of 36-month-old cars at 60,000km dropped again in June, as %RVs fell from 43.3% in May to 42.8%. The year-on-year drop was more severe, down 4.7pp from the values recorded 12 months ago.

‘HEVs retained the most value in June by far at 48%. Then came petrol cars at 44.2%, diesel models at 41.8% and PHEVs at 40.3%. BEVs were once again the worst-performing powertrain. All-electric cars held only 36.7% of their original list price after three years and 60,000km,’ outlined Madas.

June saw two-to-four-year-old passenger cars sell slower than in May. These vehicles spent 78 days in stock on average.

‘HEVs sold fastest at 61.2 days, followed by petrol cars at 74.5 days, diesel cars at 77.7 days and BEVs at 89.5 days. Meanwhile, PHEVs needed the most time to sell at 90 days on average,’ he stated.

A trend of relatively stable supply and low demand will continue as various uncertainties shroud 2025. Therefore, %RVs are expected to decrease in the next years, but at a slower pace. By the end of 2025, %RVs are anticipated to decline by 4.2% compared to December 2024. In 2026, a lower year-on-year drop of 1.5% is expected.

The UK’s RV decline

‘The UK used car market remained relatively stable between May and June, with RVs showing only a slight decline,’ commented Jayson Whittington, Autovista Group’s regional head of valuations, UK.

The average three-year-old car retained 50.5% of its original cost-new price. This result marked a modest drop of just 0.3pp from the previous month. The figure was 1pp lower than the same period last year, indicating a subtle year-on-year fall in values.

Retail activity showed signs of improvement, as the SVI increased by 2.7% compared to May. While this uptick is encouraging, it is tempered by sales remaining 18.3% lower than in June of the previous year.

In contrast, the AMVI experienced a slight month-on-month decline of 2.3%. Dealers may be hesitant to increase stock, possibly due to a lack of confidence or limited availability of desirable vehicles. Compared to June 2024, stock levels on dealer forecourts were down by 7%, reinforcing the notion of constrained supply.

The average time it took for a dealer to sell a used car in the UK also improved slightly, decreasing by 0.6 days to an average of 36.9 days.

Seasonal impact incoming

Breaking down RVs by fuel type, petrol vehicles saw a decline of 0.8pp, bringing their average RV to 51.9%. Diesel cars fared slightly better, dropping by 0.3pp to 52.7%. Hybrid vehicles experienced a minor dip of 0.2pp to 54.3%, while PHEVs fell by 0.1pp to 49.1%.

BEVs also saw a 0.3pp fall, with their average RV now sitting at 37.2%. Notably, BEVs have only lost 0.1pp compared to last year, suggesting that their values have begun to stabilise. However, they remain sensitive to fluctuations in supply.

As the summer months approach, the UK used car market typically experiences a seasonal retraction. June reflected this trend, with activity in the wholesale market beginning to soften and hammer prices starting to decline.

‘Whether this signals a cautious approach from dealers or the early signs of weakening retail demand remains to be seen, but it will be important to monitor how these dynamics evolve in the coming weeks,’ Whittington concluded.

The German government has introduced fresh incentives aimed at accelerating corporate electrification. But what support is there for the used electric vehicle (EV) market? Dr Christof Engelskirchen, chief economist at Autovista Group, explores the impact of these measures.

In a renewed effort to accelerate the transition to electric mobility, the German government has unveiled a suite of measures. The corporate fleet sector appears to be a central target of this latest approach. Part of the broader ‘Responsibility for Germany’ programme, this initiative marks a pivot from consumer subsidies to structural incentives and industrial support.

Key elements of the plan include accelerated depreciation for electric company cars. There are also extended vehicle tax exemptions for EVs until 2035, and streamlined permitting for charging infrastructure. These measures are designed to ease the financial burden on businesses and encourage fleet electrification. This is a welcome shift, albeit one that still leaves critical gaps.

‘The higher tax depreciation rates only apply to companies purchasing vehicles for inclusion in their business assets,’ explained Robert Madas Autovista Group’s regional head of valuations. Companies and consumers leasing BEVs will only benefit if leasing companies pass on the tax advantages through more favourable rates.

Carrot and stick approach

Over the past year, the carrot-and-stick approach to driving EV adoption has leant heavily towards the stick. That stick was hitting OEMs hard.

There has been little stimulus for drivers to choose an EV over an internal-combustion engine (ICE) model. One notable exception to this rule is company car drivers. They still benefit from a substantial cut in benefit-in-kind taxation when choosing a battery-electric vehicle (BEV) over an ICE model.

Private individuals had little incentive to go electric, whether purchasing a new or used vehicle. This is underlined by registration numbers and the powertrain mix.

BEV registrations fell massively in the first months of 2024 after the expiry of state subsidies. However, all-electric registrations have seen year-on-year growth of 43.2% so far this year, pushing the powertrain’s market share to 17.6%.

‘So, there has been development without subsidies, especially among fleets,’ Madas pointed out. ‘One of the reasons is improved affordability.’

BEVs are now in almost every vehicle segment and often reach a price close to conventional ICE powertrains. Furthermore, many companies have implemented ESG guidelines in favour of BEVs. Company car drivers can profit from a substantial cut in benefit-in-kind taxation.

Miss for used EV market

With these proposals, the German government is supporting EV adoption within company car fleets. This will help boost the EV share of Germany’s new-car market. The measures will also provide relief to carmakers facing mounting pressure from the EU’s industrial policy and CO₂ fleet targets.

However, the policy falls short of addressing the used EV market, which is a critical component for long-term adoption. The German government has missed an opportunity to increase the attractiveness of used EV ownership. An increase in new-vehicle supply, without stimulating the demand for used models is not ideal.

Furthermore, stimulating EV leasing may increase new registrations to a level that used-car markets are unable to absorb in three or four years. That is an additional risk for residual values (RVs).

Three measures for used EVs

There may still be time to bolster demand for used EV ownership. To achieve this, a three-pronged approach is needed. The first is bringing down electricity costs. The German government proposed a measure with this in mind as part of its recent 2025 coalition agreement. This needs to be implemented swiftly.

Second, the ramp-up of charging infrastructure needs to be sped up. Increasing competition in this space will help lower high electricity costs at public charging points. This can cost three times as much as at a private wall box.

Third, driving electrification is not just about incentivising EVs, but disincentivising ICE ownership. Governments can put measures in place to increase the costs of ICE ownership. Europe’s leading EV market, Norway, has already shown has this can work.

Looking ahead, a coherent and transparent roadmap is needed. Germany needs a combination of measures to drive EV adoption which need to be decisive and impactful. These tactics can be implemented over time and can even be modified if necessary. The key is making the plans clear and comprehensible so people can get on board with them.

There is still a lot of consumer uncertainty about the transition to EVs, and whether it will actually happen. This is driving angst about making the electric switch. As Germany recalibrates its EV strategy, the success of these measures hinges not only on their economic impact, but on their ability to build public confidence in the electric future.

Despite increases in some European markets during April, demand for used cars plummeted in May, impacting residual values (RVs). Autovista24 journalist Tom Hooker reviews the data with Autovista Group experts.

Used-car demand dropped significantly across major European markets last month. The sales-volume index (SVI) of two-to-four-year-old cars fell in Germany, Spain, France, Switzerland, Italy and Austria compared to April. Alongside the UK, most of these countries also suffered a year-on-year sales decline.

Germany saw the sharpest drop compared to April, with demand slumping by 35.5%. Spain endured a 32.5% decline, while the SVI in France fell by 21.2%. Sales in Switzerland declined by 13.4%, followed by Italy and Austria, where demand dropped by 12.8% and 11.6%, respectively.

The UK was an outlier, avoiding a month-on-month decline, although its SVI increased by just 0.2%. However, when compared to May 2024, demand in the UK decreased by 23.7%.

This was far from the greatest year-on-year decline, with dealership sales in Spain slumping by 66.4%. In Germany, two-to-four-year-old models endured a 33.2% drop in demand, according to the SVI. Meanwhile, Austria and Switzerland both saw this metric fall by 13.7%. How did this apparent decline in demand affect other metrics?

Residual values fall further

RVs presented as a percentage of original list price (%RV) after 36 months and 60,000km, continued their decline in May. As the market is experiencing relatively stable supply, declining consumer demand is placing additional pressure on RVs. These values are forecasted to drop across Europe this year.

Most of the markets under observation have seen %RVs fall since the start of the year. The only exception is Germany, which has recorded value stability since January.

Italy saw the biggest year-on-year decline in %RVs, with values dropping by 4.6 percentage points (pp) compared to May 2024. Austria was next, down 4.3pp, then Switzerland, dropping 4.2pp.

Spain saw values dip by 3.4pp, while Germany recorded a decline of 2.3pp. Of the recorded markets, the UK saw the smallest year-on-year change in %RVs, down 1.1pp.

Rising list prices

May witnessed a rise in list prices. All markets recorded an increase in this metric compared to April.

The UK had the biggest increase of 3.1%, followed by France up 2.3%. List prices in Spain grew by 1%, while Germany, Austria and Switzerland all posted a 0.7% rise in this metric from one month ago.

Italy had the smallest increase compared to April, up just 0.2%. It recorded a drop in list prices compared with May 2024, down by 2.3%. In contrast, list prices grew by 9.3% in Austria compared to one year prior.

The UK also saw a steep increase of 7.8%, while cost-new prices in Spain and Germany rose by 7.5% and 7.2% respectively. Meanwhile, list prices grew by 5.1% in Switzerland.

Demand drops in Austria

‘The SVI in Austria decreased in May following an increase in April. The number of observed sales fell by 11.6% compared to the previous month. This equated to a year-on-year decline of 13.7%,’ stated Robert Madas, Autovista Group’s regional head of valuations.

Meanwhile, the active-market volume index (AMVI) of two-to-four-year-old passenger cars decreased slightly, down 3.1% compared with April. The number of adverts for passenger cars in this age bracket fell by 6% compared to the previous year.

At 65 days, the average amount of time needed to sell a used car remained consistent in May.

Diesel vehicles continued to be the fastest-selling powertrain, taking 58.9 days on average to sell last month. This was followed by plug-in hybrids (PHEVs) at 65.9 days, petrol vehicles at 67.2 days and full hybrids (HEV) at 67.8 days. Battery-electric vehicles (BEVs) took the longest amount of time to sell at 81.1 days.

Average %RVs decreased marginally to 47.3% in May. This was a 0.3pp drop compared to April but a slump of 4.3pp year-on-year.

‘HEVs retained the greatest amount of trade value in January at 51%, followed by petrol cars at 49.2%. Then came diesel models with 47.7% and PHEVs with 45.6%. BEVs again retained the lowest amount of value, at 39.9%. This was its second consecutive monthly drop, so the improving trend for BEVs has ended,’ highlighted Madas.

%RVs are expected to decrease in the coming years but at a slower pace. This is due to weakening demand and unwavering supply. By the end of 2025, %RVs are expected to decrease by 0.6%. In 2026, a slight year-on-year drop of 0.7% is also expected.

Expensive used cars in France

%RVs were roughly stable in May, with a very slight decrease. The 2% absolute RV growth was mainly because more expensive cars were sold this month. List prices increased by 2.3% compared to April.

Petrol-powered vehicles remained stable, as the fastest sellers came from A, B and B SUV segments. The diesel market also stayed relatively unchanged, with the fastest movers coming from the C SUV and D segment.

‘Overall, HEV %RVs decreased slightly in May, as increasingly expensive vehicles were sold. Newer and more expensive models in this category do not hold values as well as older hybrid cars, which were on the market when the technology was still emerging,’ commented Ludovic Percier, Autovista Group’s senior RV analyst for France.

PHEVs also suffered a slight %RV drop. Used-car customers are not willing to pay such a high premium, like for HEVs. Supply for the technology still exceeds demand, causing %RVs to fall in the last few months.

The only thing holding %RVs is the release of new models with better electric-only ranges alongside more premium vehicles. Yet, list prices on the new-car market remain high, explaining the powertrain’s larger value loss.

Stagnating BEVs

BEV %RVs suffered a marginal decline in France as more expensive vehicles were sold in May. In this category, the Tesla Model Y was the quickest to sell. However, the sedan’s price, along with its Model 3 sibling, dropped recently.

Most of the fastest-selling BEVs were more affordable models or those offering the best ratio of price and range. This was highlighted in the fastest-sellers list with the Smart Fortwo and BMW i3 taking second and fourth respectively. Elsewhere, premium BEV cars struggled to hold value like their ICE equivalents.

‘The technology appears to be stagnating, as brands are pushed by governments to sell an increasing number of new BEVs. This means the used-car market is becoming crowded with these models but still has too few buyers,’ noted Percier.

Germany’s declining demand

Following a significant increase in April, the SVI suffered a steep decrease in May. Compared to the previous month, this metric was down 35.5%. It also endured a 33.2% drop year-on-year.

Meanwhile, the AMVI of two-to-four-year-old passenger cars remained rather stable compared to April with a slight decrease of 1.3%. The supply volume of passenger cars in this age bracket dropped by 11.5% compared to the previous year.

‘The average number of days needed to sell a used car decreased to 58 days in May. PHEVs sold the fastest at 54.5 days, while diesel cars also sold quickly, taking 55.6 days on average. Then came HEVs at 56.4 days, followed by BEVs after 57.7 days and petrol cars after 60.4 days,’ said Madas.

%RVs of 36-month-old cars at 60,000km showed a marginal increase in May. Used models held an average %RV of 47.7%, up 0.1pp from April. Petrol cars led the market with a %RV of 49.3%. Then came HEVs at 48.8% and diesel cars at 48.7%, followed by PHEVs at 42.7%. BEVs again retained the lowest level of value at 37.2%.

‘Although RVs have stabilised recently, demand remains rather weak. Therefore, RVs can be expected to remain under pressure. In 2025, %RVs are forecast to decrease, down 2.8% when compared with December 2024. Pressure will probably ease in 2026, with RVs forecasted to decline by 1.4%,’ he outlined.

Positive growth in Spain

Spanish new-car sales continue to perform positively, with a growth of 7.1% in April. This meant the market surged 12.2% during the first four months of the year.

All channels saw registration growth. The corporate channel improved at a steady pace and the rental channel grew at a higher rate. This boost in sales came ahead of the start of the peak tourist season.

‘The private individual channel also increased in volume. This was largely due to the special Reinicia Auto+ plan for those affected by the DANA floods in Valencia. A boost in EV deliveries also helped. The technology reached a 16.2% share in May while representing 14.7% of total sales in the year to date,’ explained Ana Azofra, Autovista Group’s head of valuations and insights, Spain.

The used-car market is also experiencing a period of growth, up 3.7% from January to April. Furthermore, there was a significant increase in EVs and younger cars being sold in this period. This creates a more sustainable used car offer.

‘Regarding average transaction prices, the Spanish market continues to distance itself from the negative trend observed in most European markets. All powertrains saw values stabilise, while used cars sold 10 days faster on average when compared to the previous year, taking 67.3 days. So, we can continue to expect stability,’ noted Azofra.

Only PHEVs and petrol models showed a drop in absolute RVs during May, falling by -4.7% and 0.4% respectively. However, it is worth noting that the mix of PHEV cars in Spain now includes offerings from more economical segments and brands. The fastest-selling models in May were the Lynk & Co 01, Kia Ceed and Toyota CH-R.

Switzerland’s significantly lower demand

‘After an increase in April, the SVI decreased significantly in Switzerland during May. The number of sales observed decreased by 13.4% compared to the previous month. Year-on-year, the SVI was down by 13.7%,’ stated Madas.

Meanwhile, the AMVI of two-to-four-year-old passenger cars decreased by 1.1% compared to April. However, the supply volume of passenger cars in this age bracket slumped by 11.7% compared to the previous year.

RVs of 36-month-old cars at 60,000km dropped slightly in May, as %RVs fell to 43.3% from 43.7% in April. Yet, the year-on-year drop was more severe, down 4.2pp from the values recorded 12 months ago.

‘HEVs retained the most value in May by far at 48.4%. Then came petrol cars at 44.7%, diesel models at 42.1% and PHEVs at 40.7%. BEVs were once again the worst-performing powertrain, retaining just 37.3% of their original list price after three years and 60,000km,’ he highlighted.

April saw two-to-four-year-old passenger cars sell at a similar pace to April. On average, used vehicles spent 73.9 days in stock.

HEVs sold fastest at 57.2 days, followed by petrol cars at 72.3 days, diesel models at 75 days and BEVs at 79 days. Meanwhile, PHEVs needed the most time to sell at 84 days on average.

A trend of relatively stable supply and low demand will continue as various uncertainties shroud 2025. Therefore, %RVs are expected to decrease in the next years, but at a slower pace. By the end of 2025, %RVs are predicted to decrease by 3.9% compared to December 2024. In 2026, a lower year-on-year drop of 1.5% is forecast.

Stability in the UK

In May 2025, the average three-year-old car retained 50.8% of its original cost-new price. This was unchanged from April, indicating a stable used car market. The average %RV of petrol cars increased marginally by 0.1pp to 52.7%, while the average %RV of diesel cars rose by 0.5pp to 53%.

‘In contrast, the average hybrid model retained 54.5% of its original list prices, a drop of 0.4pp, and the average PHEV %RV decreased by 0.6pp to 49.2%. BEVs saw a slightly larger drop, with the average RV falling by 0.9pp to 37.5%,’ said Jayson Whittington, Autovista Group’s regional head of valuations, UK.

On average, it took 37.5 days to sell a used car in May, an increase of 3.1 days month on month. Hybrid cars emerged as the fastest-selling fuel type in the UK, with an average sales time of 35.5 days. They also retained the largest percentage of their original list price after three years.

Hybrids slower to sell

The average number of days needed to sell a used petrol car rose by 3.8 days to 37.2 days. For diesel, this metric increased by 4 days to 42.3 days.

Although hybrid vehicles performed well overall, it took 2.6 additional days to sell one in May compared to April. PHEVs took 0.6 fewer days to sell at 37.6 days. It took dealers on average 37 days to sell a BEV, up 1.2 days month on month.

The SVI remained broadly level compared to April, indicating consistent retail conditions. Meanwhile, the AMVI showed a 1.6% decrease in the number of cars advertised for sale by dealers.

‘If March’s plate change activity generated additional used cars, they have either already washed through forecourts, or the volume was not substantial, and with no significant extra volume expected to hit wholesale channels, the short-term outlook for RVs in the UK is stable,’ concluded Whittington.

Residual values (RVs) of 36-month-old cars at 60,000km, presented as a percentage of original list price (%RV), fell in April. But which countries and powertrains suffered the biggest drops? Autovista24 journalist Tom Hooker analyses the figures with Autovista Group experts.

On average, %RVs saw year-on-year declines in Austria, Germany, Italy, Spain, Switzerland and the UK. Alongside France, these markets also saw values fall compared with March.

Italy suffered the steepest year-on-year %RV decline, dropping 4.6 percentage points (pp) to 48.4%. This was down from its 48.8% market average recorded in March. Meanwhile, Austria saw its lowest %RV since December 2024, at 47.7%. Compared with April 2024, %RVs dropped by 4.1pp and  0.6pp from March.

Average trade values in Switzerland slumped 4pp year on year to 43.7%. This was down from an average of 44.1% in March. Spain endured a 2.8pp fall in %RVs compared to April 2024 and a 0.5pp month-on-month drop. France also saw values decrease by 0.5pp compared with March.

Elsewhere, the UK suffered its lowest %RV performance since August 2024. It went from an average trade value of 51.7% in April 2024 to 50.7%, marking a 1pp decline from one year ago.

Germany saw comparative stability, with little month-on-month change. However, the country %RVs fell by 2.6pp compared to April 2024.

PHEV values plummet

Compared with 12 months ago, trade values of plug-in hybrids (PHEVs) struggled in Europe. It was the worst-performing powertrain in Italy, Spain and the UK, with drops of 7.5pp, 4pp and 0.8pp respectively.

Conversely, battery-electric vehicles (BEVs) saw roughly average performances compared with other powertrains. In the UK, BEVs recorded a 1.3pp %RV growth compared to April 2024. This was the best result across all the technologies in the six markets assessed. However, in Switzerland, the powertrain suffered the worst year-on-year fall of any powertrain, at 5.8pp.

Meanwhile, full hybrids (HEVs) saw values decrease by 2.1pp and 2.6pp in Spain and Switzerland respectively. Alongside diesel, the powertrain performed well in Italy, posting a 3.9pp fall, while the overall used-car market dropped by 4.6pp.

 Diesel was the best-performing powertrain in Germany and Austria, with respective declines of 1.8pp and 2.4pp declines. Petrol followed the average market trend in the six countries observed. However, in Austria, it faced the biggest decline of any fuel type, at 5.2pp.

Increasing demand in Austria

‘Following a slight decrease in March, the sales-volume index (SVI) in Austria increased slightly in April. The number of observed sales increased by 4.3% compared to the previous month. This was a year-on-year decline of 6.9%,’ outlined Robert Madas, Autovista Group’s regional head of valuations.

Meanwhile, the active-market volume index (AMVI) of two-to-four-year-old passenger cars remained stable. However, the supply volume of passenger cars in this age bracket fell by 3.6% compared to the previous year.

At 66 days, the average amount of time needed to sell a used car decreased again in April. This was around 2.6 days faster than in March.

Diesel vehicles continued to be the fastest-selling powertrain, taking 59.4 days to sell on average last month. This was followed by HEVs at 60.7 days, PHEVs at 70.2 days and petrol vehicles at 70.5 days. BEVs took the longest amount of time to sell at 73.1 days.

%RVs decreased to 47.7% on average in April. This was a 0.6pp decrease compared to March and a 4.1pp decrease year-on-year.

HEVs retained the greatest amount of trade value in January at 51.3%, followed by petrol cars at 49.2%. Then came diesel models with 48%, and PHEVs with 46.4%. BEVs again retained the lowest amount of value, at 41.3%. This was a 2.7pp drop compared to March, so the improving trend from the previous months stopped in April.

‘%RVs are expected to decrease in the coming years but at a slower pace. This is due to weakening demand and unwavering supply. By the end of 2025, %RVs are expected to decrease by 0.7%. In 2026, a slight year-on-year drop of 0.7% is also expected,’ stated Madas.

Stable values in France

In France, absolute RVs remained stable for petrol and diesel models in April, compared with March. Meanwhile, HEVs and PHEVs recorded a slight RV increase. Smaller and cheaper cars were the quickest to sell during the month.

%RVs for petrol-powered cars were relatively stable in April. The powertrain was more attractive to used-car customers this month. Compared to March, the fuel type took 4.2 fewer days to sell on average.

‘The petrol vehicle market was quite stable until December last year. Values then fluctuated at the beginning of this year to find a stabilisation again,’ explained Ludovic Percier, Autovista Group’s senior RV analyst for France.

%RVs of diesel-powered cars were stable in April after successive months of marginal increases. This counterbalanced the decrease the fuel type experienced until December 2024.

‘There is still demand for diesel models on the used-car market. However, there are smaller volumes and model ranges on offer compared to previous years. Diesel cars are among the fastest-selling powertrains with HEVs, evidencing how much demand they are in,’ highlighted Percier.

Overall HEV %RVs fell this month due to more expensive vehicles being sold. However, the technology remains the fastest in terms of selling times. HEVs are still appreciated in France, so %RVs have remained stable overall.

‘Currently, the technology strikes an appealing balance between petrol and diesel vehicles and BEVs. One of its major advantages is that, unlike BEVs and PHEVs, there is no need to charge the car. Furthermore, some HEVs are becoming more affordable,’ noted Percier.

Suffering PHEVs

PHEVs suffered from a significant decrease in value last year and remain the second slowest-selling powertrain in France. The technology has seen an oversupply on the used-car market caused by fleet buyers on the new-car market.

‘This month, PHEV values decreased slightly. However, the introduction of newer models with better electric-only ranges and more premium models has helped keep RVs roughly stable,’ said Percier.

While values did increase compared with the first three months of the year, figures have only returned to the levels recorded at the end of last year. List prices on the new-car market remain high, explaining the powertrain’s larger value loss.

BEVs not only spent the longest amount of time in stock but also recorded the lowest RVs. Values have fallen considerably in previous months. Despite marginal increases in January and February, April RVs dropped by 0.8pp compared to March.

The technology appears to be stagnating, as brands are pushed by governments to sell an increasing number of new BEVs. This means the used-car market is becoming crowded with models but still has too few buyers. While Tesla enjoyed some of the fastest selling times on the used-car market, other brands struggled to find customers.

‘As of December 2023, BEV purchase incentives became dependent on lifetime carbon emissions. This meant some brands and models were no longer eligible. Therefore, used models are still too expensive, causing prices to drop month after month,’ he commented.

Where demand does not meet supply, the market sees a strong RV drop and lower prices. Overall, small cars are the fastest sellers, including the affordable Toyota Aygo and Dacia Duster.

Germany’s surging SVI

Following a significant decrease in March, the SVI in Germany showed a steep month-on-month increase in April, up 22.7%. However, the metric was down 21.2% year-on-year.

‘Meanwhile, the AMVI of two-to-four-year-old passenger cars remained rather stable compared to March with a slight decrease of 3.1%. The supply volume of passenger cars in this age bracket dropped by almost 12% compared to the previous year,’ stated Madas.

The average number of days needed to sell a used car increased to 64.4 days in April. PHEV models sold the fastest at 60.3 days, followed closely by diesel cars at 60.6 days. Then came BEVs at 61.6 days, followed by petrol cars after 67.9 days and HEVs after 72.2 days.

‘%RVs of 36-month-old cars at 60,000km remained stable in April. Models held an average %RV of 47.6%. Petrol cars led the market with a %RV of 49.2%. Then came HEVs at 49.4% and diesel cars at 48.6%, followed by PHEVs at 42.7%. BEVs again retained the lowest level of value at 37.3%,’ he outlined.

Although RVs have stabilised recently, demand remains rather weak. Therefore, RVs can be expected to remain under pressure. In 2025, %RVs are forecast to decrease, down 2.6% when compared with December 2024. Pressure will probably ease in 2026, and RVs are forecasted to decline by 1.4%.

Italy’s unsurprising values

‘There were no surprising residual value trends in Italy during April. Compared to one year ago, %RVs declined sharply by 4.6pp. There was also a 0.4pp drop from last month, a clear sign that so far there has been no reversal of the downward trend,’ highlighted Marco Pasquetti, Autovista Group’s head of valuations for Italy.

Current list prices are very close to April 2024 and have only decreased by €125. However, compared to 12 months ago, absolute RVs fell from €20,766 to €18,897 on average. This equated to a drop of almost €2,000.

Despite recording a year-on-year %RV decline of 1.9pp, liquefied petroleum gas (LPG) vehicles remained stable compared to last month. The powertrain retained 47.5% of its original list price value in April.

‘It is well known that Italy is one of the main markets for this fuel type. Sales in the new market also confirm a strong appreciation of the powertrain. LPG vehicles accounted for 9.2% of overall registrations in the first quarter of the year, not far away from diesel’s 10% share,’ said Pasquetti.

The worst performers compared to April 2024 were PHEVs and BEVs, with %RVs falling by 7.5pp and 5.4pp respectively. Currently, a used BEV retains 30.4% of its list price after 36 months and 60,000km.

The overall RV outlook for 2025 is down 7.2% compared to December 2024. However, there is still a high level of uncertainty related to the introduction of tariffs and related countermeasures. This could affect used-car values to some extent. It will be crucial to constantly observe the development of the used-car market.

Spain’s passenger car growth

The Spanish new-car market continues to show great strength. Registrations continue to grow significantly across all channels. In March, a year-on-year growth of 23.2% was achieved. Meanwhile, the market improved by 14.1% in the first quarter.

‘As in previous months, part of this growth in private sales corresponds to the special Reinicia Auto+ plan for those affected by the DANA floods in Valencia. Excluding these special sales, the monthly growth would be 18%, which is still significant,’ commented Ana Azofra, Autovista Group’s head of valuations and insights, Spain.

In addition to this new-car market positivity, there is a notable increase in sales of electric vehicles. Plug-in deliveries increased by 68.8% in March and took a 14.1% market share. Projections are also positive for the coming months.

‘The used-car market is also experiencing growth, with an accumulated boost of 8% across the first three months of the year. As expected, the presence of EVs has also increased among used car transactions. Plug-in stock is currently increasing, facilitated by a negative adjustment in their average transaction prices,’ she noted.

In April, a three-year-old BEV with 60,000km sold for €21,362 on average. This equated to a drop of €601 compared to March and almost €1,600 less than a year ago.

However, the mix of models for sale is also changing with the introduction of new players in the market. The remaining powertrains continue to show great stability. Finally, the three fastest-selling used models this month were the Lynk & Co 01, Mazda CX-30, and Toyota CH-R.

Improving demand in Switzerland

Following a decrease in March, the SVI increased in Switzerland in April. The number of sales observed increased by 2.1% compared to the previous month. Year-on-year, the SVI was up by 7.6%.

‘Meanwhile, the AMVI of two-to-four-year-old passenger cars decreased slightly by 1% in April compared to March. However, the supply volume of passenger cars in this age bracket slumped by 10% compared to the previous year,’ explained Madas.

RVs of 36-month-old cars at 60,000km dropped slightly in April. Meanwhile, %RVs fell to 43.7% in April from 44.1% in March. However, the year-on-year drop was more severe, down 4pp from the values recorded 12 months ago.

HEVs retained the most value in April by far at 49%. Then came petrol cars at 45.2%, diesel models at 42.2% and PHEVs at 41%. BEVs were once again the worst-performing powertrain. All-electric cars retained only 38.2% of their original list price after three years and 60,000km.

April saw two-to-four-year-old passenger cars sell quicker than in March. These vehicles spent 75.2 days in stock on average.

‘Petrol cars sold fastest at 71.4 days, followed by HEVs at 73.7 days, diesel cars at 74.6 days and PHEVs at 83.1 days. Meanwhile, BEVs needed the most time to sell at 85.8 days on average. However, this was an improvement compared to the previous month when the technology took 11.5 days longer to sell on average,’ he stated.

A trend of relatively stable supply and low demand will continue as various uncertainties shroud 2025. Therefore, %RVs are expected to decrease in the coming years, but at a slower pace. By the end of 2025, %RVs are expected to decrease by 3.5% compared to December 2024. In 2026, a lower year-on-year drop of 1.5% is expected.

Rising supply in the UK

‘In April, the used-car market in the UK was reasonably stable. The average three-year-old car retained 50.7% of its original new price. This marked a slight decrease of 0.5pp from March. Compared to April 2024, the average %RV fell by one percentage point,’ said Jayson Whittington, Autovista Group’s regional head of valuations, UK.

Interestingly, the AMVI increased by 7.8% compared to the previous month. Despite this rise in advertisements, the SVI revealed a 2.8% decline in sales from March.

‘One positive trend was the reduced average number of days it took dealers to sell a used car. This figure fell by 6.4 days, bringing the average down to 34.4 days. This quicker turnover implies that, although fewer cars were sold, dealers were able to sell them more quickly. This was likely due to an improved mix of vehicles on offer,’ he noted.

The market for BEVs showed mixed results. BEV %RVs fell by 0.6pp from the previous month. However, compared to April 2024, this was an increase of 1.3pp. Additionally, there was a 6% increase in BEV sales compared with March. There was also a 1.2% rise in the number of BEVs advertised for sale.

Clearly, used-car stock is on the rise. It will be interesting to see if March’s plate change generated a significant increase as fresh stock begins to work its way through wholesale channels and onto dealer forecourts.