Analysis of Declining Used Light-Commercial Vehicle Prices in Europe – July 2024
The Decline of Light-Commercial Vehicle Prices in Europe: A Review of Germany, Poland, and the UK
In the first half of 2024, the prices of light-commercial vehicles (LCVs) have seen a significant decline across three of Europe’s largest used markets – Germany, Poland, and the UK. This trend has affected various age categories and powertrains, with battery-electric vehicles (BEVs) facing particular challenges.
The reliance on diesel engines in the commercial vehicle sector, due to their quick refueling and affordability, has impacted the demand for BEVs. Issues such as charging infrastructure and downtime have deterred buyers, leading to lower prices for used BEV models.
Older LCVs have also experienced price drops, as increased supplies of aged vehicles have made buyers more cautious while waiting for newer, better-equipped models to become available.
The market normalization process has played a significant role in the declining prices. During the COVID-19 pandemic, LCV values soared as consumer demand for commercial vehicles increased. However, post-pandemic, the market is adjusting, leading to price deflation.
In Germany, used-commercial vehicle prices have continued to fall, with a more significant decline in LCV prices compared to passenger cars. The decline has been observed across all age categories, with older vehicles being the most affected. Despite the downward trend, prices are still higher than pre-pandemic levels.
Similarly, in Poland, the used-LCV market has seen ongoing declines in values, affecting all segments. The country’s economy and logistics sector have been impacted, with significant price drops for vehicles between 31 and 53 months of age.
The UK’s used-LCV market has experienced an increase in supply levels, particularly ex-fleet, low-spec vehicles with varying damage. This has led to weaker prices and greater buyer caution, although younger, well-equipped models are in demand.
The decline in demand for used all-electric commercial vehicles has been notable in the UK, with the powertrain making up a small percentage of transactions. The recent change in government in the UK has raised questions about the future of policies related to electric vehicles and commercial infrastructure.
Overall, the decline in LCV prices in Europe reflects a period of market adjustment post-pandemic, with various factors influencing the trends in Germany, Poland, and the UK. As the market continues to evolve, the relationship between new and used models, as well as government policies, will play a crucial role in shaping the future of the light-commercial vehicle sector in Europe.