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

Germany Used Car Market has been segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Others), Body Type (Hatchback, Sedan, and SUVs and MPVs), Sales Channel (Online and Offline). The report offers market size and forecasts for Germany Used Car Market in value (USD Billion) for all the above segments.

Market Snapshot

Germany Used Car Market Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 7.12 %

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Market Overview

Germany used car market was valued at USD 113.2 Billion in 2021, and it is expected to reach a value of USD 171.03 Billion by 2027, registering a CAGR of 7.12% during the forecast period (2022 - 2027).

Due to the global COVID-19 pandemic, countries were forced to temporarily reduce demand for both old and new vehicles. Furthermore, the global economic slowdown has affected consumers, resulting in a decrease in car sales; however, due to the risk of infection and the desire to maintain social distance, people all over the world have begun to avoid public transportation. According to the KBA, the used-car market in Germany contracted by 6.8 percent in the first six months of 2021. However, dealerships in the country could only reopen on a conditional basis in March 2021. This naturally had a greater impact on the new-car sector, with registrations down 24.8 percent in the first half. In December 2020, Schwacke predicted that slightly more than seven million used cars would be sold in 2021, roughly the same as in 2020. Furthermore, this volume of transactions would be less than 200,000 units short of the 7.2 million cars that changed hands prior to the pandemic.

Over the long term, market has grown significantly in recent years, with price competition among new players being one bright spot in the used car industry. The inability of customers to purchase new cars has become one of the reasons for the increasing volume of used car sales, which is complemented by investments made by industry participants to establish their dealership network in the market. These dealership networks aided market participants in brand development and the viability of used car options.

However, the used car dealer is relying on the seller since the dealer cannot obtain cars to serve their customers unless the owner sells it in the market. If new car sales fall, the market will run out of supplies after a while, this might hamper the market growth.

Scope of the Report

A used vehicle that has earlier been owned is referred to as a used car. Used cars can be acquired from a variety of sources, both online and offline.

Germany Used Car market is segmented by vendor type, fuel type, body type, and sales channel.

By Vendor Type, the market is segmented into Organized and Unorganized. By Fuel Type, the market is segmented into Petrol, Diesel, Electric, and Others. By Body Type, the market is segmented into Hatchback, Sedan, and SUVs and MPVs. 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.

Vendor Type
Organized
Unorganized
Fuel Type
Petrol
Diesel
Electric
Others
Body Type
Hatchback
Sedan
SUVs and MPVs
Sales Channel
Online
Offline

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Key Market Trends

Gasoline and Diesel Vehicle are Expected to Hold the Significant Market Share

The used car industry is expected to grow in the coming years as new car sales decline due to the ban on diesel and petrol vehicles. The increased use of car financing and insurance options at German used car dealerships will result in significant growth in the used car market. In contrast, the country would see an increase in used car dealerships, resulting in increased availability of used cars for customers. According to Motorway, an online used car marketplace, the sale of used diesel cars increased by 21% between May and June, compared to a 13% increase in petrol cars. For instance,

  • As part of the European Union's strategy to cut carbon emissions by 55 percent by 2030 compared with 1990 levels, it has recommended a 100 percent emissions reduction from new cars by 2035, a requirement that would make it difficult to sell the new petrol or diesel vehicles.

With the implementation of more stringent emission standards by governing bodies, the pries of new vehicles are increasing significantly. This in turn is encouraging the adoption of used vehicles among consumers, which are signficantly less expensive. Further, as the electric vehicles have witnessed a growth in recent years, significantly less number of electric vehicles are available in the used cars market. Therefore, gasoline and diesel vehicles are expected to hold major share in the market during the forecast period. 

Germany Used Car Market_piechart

Organized Vendor Segment is Expected to Hold High Volume Share

The organized vendor segment is expected to hold a high volume share in upcoming years. This is due to an increase in the number of franchised dealers in the market. The entry of new market players and new retail models has also emerged as a key factor in driving the market growth. Furthermore, organized vendors benefited from increased brand loyalty across all age groups. In the coming years, the penetration of multi-brand dealerships and OEM Certified dealerships will contribute to the growth of the German used car market. 

Moreover, The use of e-commerce channels for used car promotion and sales is expected to open up new opportunities for the used car market. Independent dealers and franchise owners are expected to use e-commerce to generate leads and display used car inventory. Furthermore, the implementation of technology is expected to open up newer investment avenues in the industry.

germany used car market_vendor type

Competitive Landscape

Germany's used car market is highly fragmented, with numerous startups and regional players. However, major used car selling companies are forming joint ventures and partnerships to launch newer products in order to gain a competitive advantage.

  • In December 2021, Cazoo Ltd., an online car retailer, launched its operation in Germany and France as part of its plan to expand across Europe. It follows the recent acquisitions of German car subscription service Cluno and Spanish vehicle subscription marketplace Swipcar. This would include buying cars directly from customers, fully digital financing, and all-inclusive monthly subscriptions, among other things to its venture.

Recent Development

  • In February 2022, Driverama Germany GmbH began selling used cars online in Germany a year after launching a car buying service in the country. Driverama's new service allows buyers to compare popular models, makes, prices, and financing options across more than 1,000 fully inspected cars with an average age of four years. Each vehicle comes with a full-service history, an ownership report, and a professional clean.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vendor Type

      1. 5.1.1 Organized

      2. 5.1.2 Unorganized

    2. 5.2 Fuel Type

      1. 5.2.1 Petrol

      2. 5.2.2 Diesel

      3. 5.2.3 Electric

      4. 5.2.4 Others

    3. 5.3 Body Type

      1. 5.3.1 Hatchback

      2. 5.3.2 Sedan

      3. 5.3.3 SUVs and MPVs

    4. 5.4 Sales Channel

      1. 5.4.1 Online

      2. 5.4.2 Offline

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 AUTO1.com GmbH

      2. 6.2.2 CarNext.com

      3. 6.2.3 mobile.de

      4. 6.2.4 OOYYO Corporation

      5. 6.2.5 Cazoo Ltd.

      6. 6.2.6 12Gebrauchtwagen.de

      7. 6.2.7 AutoScout24 GmbH

      8. 6.2.8 Driverama Germany GmbH

      9. 6.2.9 Cinch Cars Limited

      10. 6.2.10 pkw.de Autoborse GmbH

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Germany Used Car Market market is studied from 2018 - 2027.

The Germany Used Car Market is growing at a CAGR of 7.12% over the next 5 years.

The Germany Used Car Market is valued at 113 Billion USD in 2018.

The Germany Used Car Market is valued at 171 Billion USD in 2027.

CarNext.com, AUTO1.com GmbH, mobile.de, OOYYO Corporation, Cazoo Ltd. are the major companies operating in Germany Used Car Market.

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