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Second hand economy: used cars drive the aftermarket
Dino Collazzo
We are looking at an important market, one that has sustained Auto-components manufacturers , spare parts dealers and repair workshops during the worst period of the recession. Not only, the sector has continued to generate good profits margins for dealers, authorized and private retailers right down to our days. The web represents the biggest news for the sector with change of ownerships constantly on the rise. In Italy, according to a research carried out by Doxa, the second-hand car market is worth 19 billion euro.
If the aftermarket sector is currently thriving, credits should be given not only to a steadily rising automotive market. Auto-component manufacturers, spare parts dealers and repair workshops are enjoying good results also thanks to second-hand car sales, as they obviously need greater attention and maintenance compared to a new vehicle. According to a research conducted by Doxa on behalf of Subito.it, in Italy, the second-hand market is worth about 19 billion euro, one more than in 2015. The automotive segment represents the “driving” factor behind the growth of the sector with 26.9% of the total value of this market made up by used car sales. A further noteworthy aspect relates to where most of these transactions take place: the web. So much so that 15% of the Italian population uses the web to make purchases, with second-hand cars being among the best selling items.
If we delve a little deeper, according to a study carried out by Anfia, 2016 witnessed a 6.9% increase in change of ownership over 2015. In absolute terms, we are talking about 5 million cars, including transfers of ownerships on behalf of the dealer pending resale to the end customer. A business that during the worst period of the recession generated value making a great contribution in supporting the automotive sector and its supply chain. Breaking up the data on used cars, transfers of ownership to a motor dealer pending resale scored the highest increase with 10.6%, while direct change of ownership between motorists settled at 4.1%. A trend that led to 154 second-hand models sold for every 100 new cars. Of course, second-hand cars support the aftermarket too, whether it is through authorized or independent networks. A further study, this time carried out by Gipa Italia, aftermarket research specialists, shows that the spare parts sector in our country is worth about 12.6 billion euro. And part of that turnover comes from maintenance and second-hand car assistance, especially on bodywork, engine components, undercar, electric and electronic equipment.
Guaranteed used cars, though, represent a source of great deals not only in Italy. In other European countries too, dealers, authorized and private retailers are investing in the idea of a "circular economy" based on reusing a given product able, at the same time, to support the growth of new car sales. Germany, France and the United Kingdom are the most interesting markets, where the sale of used cars has witnessed impressive figures. The best result in terms of percentage increase over 2015 was scored by Great Britain, with a + 6.9%, followed by France, with a + 1.5%, and Germany, + 1%. Things change drastically when we look at volumes. In this case, the German market takes the lion’s share with 7.4 million change of ownerships, followed by the UK with 6.3 million and France with 5.6 million. The European automotive market proves to be particularly dynamic, especially if new car registrations are also considered, boosted by a total aftermarket value of close to 218 billion euro driven by original components, spare parts, accessories and tires. Enough to whet the appetite of old and new, increasingly competitive players.
If we delve a little deeper, according to a study carried out by Anfia, 2016 witnessed a 6.9% increase in change of ownership over 2015. In absolute terms, we are talking about 5 million cars, including transfers of ownerships on behalf of the dealer pending resale to the end customer. A business that during the worst period of the recession generated value making a great contribution in supporting the automotive sector and its supply chain. Breaking up the data on used cars, transfers of ownership to a motor dealer pending resale scored the highest increase with 10.6%, while direct change of ownership between motorists settled at 4.1%. A trend that led to 154 second-hand models sold for every 100 new cars. Of course, second-hand cars support the aftermarket too, whether it is through authorized or independent networks. A further study, this time carried out by Gipa Italia, aftermarket research specialists, shows that the spare parts sector in our country is worth about 12.6 billion euro. And part of that turnover comes from maintenance and second-hand car assistance, especially on bodywork, engine components, undercar, electric and electronic equipment.
Guaranteed used cars, though, represent a source of great deals not only in Italy. In other European countries too, dealers, authorized and private retailers are investing in the idea of a "circular economy" based on reusing a given product able, at the same time, to support the growth of new car sales. Germany, France and the United Kingdom are the most interesting markets, where the sale of used cars has witnessed impressive figures. The best result in terms of percentage increase over 2015 was scored by Great Britain, with a + 6.9%, followed by France, with a + 1.5%, and Germany, + 1%. Things change drastically when we look at volumes. In this case, the German market takes the lion’s share with 7.4 million change of ownerships, followed by the UK with 6.3 million and France with 5.6 million. The European automotive market proves to be particularly dynamic, especially if new car registrations are also considered, boosted by a total aftermarket value of close to 218 billion euro driven by original components, spare parts, accessories and tires. Enough to whet the appetite of old and new, increasingly competitive players.
