France Used Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

France used car market was valued at USD 9.96 Billion in 2021, and it is expected to reach a value of USD 12.74 billion by 2027, registering a CAGR of 4.2% during the forecast period (2022 - 2027).

Amid the COVID-19 pandemic-associated lockdown, the demand for used cars witnessed a halt in sales for the first half of the year 2020. However, since the second half of the year 2020, the demand for used vehicles started to pick the pace and continued until 2021. The prolonged waiting period for new vehicles encouraging a large number of customers across the country to opt for used vehicles, which is likely to drive the market growth during the forecats period. 

Over the medium term, factors such as rising income levels, increased demand for luxury vehicles, shorter car ownership periods, brisk import-export activity, and a growing consumer preference for small and compact vehicles are expected to contribute to the market's expansion. France used car market is expanding rapidly. Some of the other reason for this is the entry of organized players into the market, which has addressed the trust deficit that has plagued the used car market in those countries for many years.

• According to the automotive expert, French used-car transactions in 2021 was around 3.9 percent higher than in 2019. This contrasts sharply with a 25.1 percent drop in new-car registrations. Furthermore, in 2021, more than six million cars have changed hands in a single year.

However, some of the unorganized players do not provide warranties on pre-owned vehicles. Furthermore, some sellers commit fraud by re-painting and removing dents from accident vehicles to conceal their damage and obtain a falsely inflated value, which causes buyers to be wary of purchasing used cars. As a result, the higher rate of malpractices and unorganized dealers' larger market share pose a threat to the growth of the used car market. This might be a factor that hampers the target market growth during the forecast period.

Scope of the Report

Used vehicles are referred to as pre-owned vehicles. In other words, a previously owned vehicle had at least one previous owner. Its cost varies greatly depending on the model, year, and condition. One of the most important factors for used car buyers is the condition of the vehicle.

France Used Car Market is segmented by fuel type, body type, vendor type, and sales channel.

France Used Car Market is segmented by Fuel Type, the market is segmented into Petrol, Diesel, Electric, and Others. By Body Type, the market is segmented into Hatchback, Sedan, SUVs and MUVs. By Vendor Type, the market is segmented into Organized and Unorganized. By Sales Channel, the market is segmented into Online and Offline. The report covers the market size and forecast in value (USD Billion) for all the above segments.

Report scope can be customized per your requirements. Click here.

Key Market Trends

2-4 Years Old Cars are Expected to Witness Significant Growth

Online sales have emerged as a critical market growth factor. Online sites in the used car market have played an important role in allowing customers access with a single click. The existence of such developments resulted in a cumulative growth in demand for used cars. Furthermore, factors such as affordability, the availability of used cars, the increase in the need for personal mobility, and the emergence of various online players to organize the market have resulted in market growth. For instance,

• In November 2021, the used market returned to growth, increasing by 5.1% to 462,702 units (NGC-Data data). In 2020, registrations fell over the same month due to confinement, but not by a significant amount (-4%, to 444,959 units). In comparison, 463,429 used vehicles were sold in 2019.
• In France, 3.8 used cars were registered for one new car in November. The most spectacular increase was seen in the 2-4-year-old used car market, which increased by 36.1 percent. Outstanding for several months, the segment of cars less than a year old increased by 5.4 percent this month, accounting for only 8% of registrations. In contrast, that of products aged 8 years and older fell by 3.5 percent, capturing more than half of the second-hand market (51.3 percent ).

Further, with the faster replacement of cars by fleet operating companies, especially car rental companies, aimed at reducing maintenance cost, is likely to drive the influx of 2-4 years old used cars in the market. This is likely to remain prominent driver during the forecats period.

To understand key trends, Download Sample Report