Market Trends of Netherlands Used Car Industry
Governments Support Purchases to Stimulate the Growth of the Used Car Market-
- Governments in the country are encouraging the purchase of used electric vehicles to make them accessible to everyone. Subsidies for pre-owned electric vehicles are one possibility. Only a few countries have introduced financial incentives expressly for the purchase or leasing of a used electric vehicle. At the same time, there are few subsidy programs in Europe for the purchase of a new electric vehicle. For instance,
- In December 2020, the government of the Netherlands introduced a new subsidy scheme targeted at private individuals for the purchase of a used electric car in mid-2020. Small and compact battery electric vehicles (BEVS) with an original price between USD 14160 and USD 53100 and a range of at least 120 km are eligible for the one-time subsidies. For the purchase or lease of a used BEV, a USD 2360 incentive is provided.
- The incentive is subject to further eligibility requirements. The car must be purchased from a dealership; grants are not available for purchases between private parties. The car must also be in the name of the subsidy recipient for a minimum of three years. Under current plans, the grant amount for the purchase or lease of a used BEV will remain the same until the program runs out by mid-June 2024 or when funds are exhausted.
- In April 2023, the Netherlands Cabinet announced €600 million for a subsidy program to encourage the purchase of used electric vehicles by more individuals. Because they are now too expensive on the Netherlands Used car market and hence unattractive to many inhabitants, electric cars are frequently transported abroad when they are traded in.
- The government wants to achieve a carbon emissions reduction of 55 percent compared to 1990. Owing to such factors, the demand for pre-owned vehicles will remain in a growth trajectory over the coming years and will have a subsequent positive impact on the used car market.
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Buyers Inclination Towards Affordable Used Cars to Drive the Market-
- The Netherlands public transportation system offers a dependable array of commuting alternatives, encompassing trains, buses, bicycles, and ferries. Nevertheless, the acquisition of new cars constitutes a substantial financial commitment, promising heightened convenience in mobility. When prospective buyers encounter financial constraints in procuring a new car, their attention may turn toward assessing the market rates for pre-owned cars in the Netherlands.
- According to Statista, In June 2022, the average price for a used car in the Netherlands was approximately USD 28,080. Used car prices in the country can vary significantly, ranging from USD 5,900 to USD 29,500, with the primary determinants being the car's model and age. Specifically, a five-year-old used car typically commands a price of around USD 20,060, while a ten-year-old vehicle can be acquired for approximately USD 7,080.
- This surge in prices represents a substantial increase, with the average used car price rising by 7.5% in just the past six months. For context, in July 2021, the average price of listed used cars stood at approximately USD 23,400. The driving force behind this price escalation is the high demand for used cars in the Netherlands.
- The cost-effectiveness of purchasing a used car over a new one is a compelling motivator. Netherlands people are known for their pragmatic approach to spending, and opting for a used car often represents a more financially prudent choice. The availability of a wide range of used car options, from compact city cars to larger luxury family cars, caters to diverse preferences while maintaining affordability.
- These factors act as drivers for the used car market in the Netherlands. The cumulative effect of these aspects is likely to create positive momentum, attracting more buyers and ultimately strengthening the demand for used cars in the Netherlands.
