Market Trends of Spain Used Car Industry
The Sport Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs) Segment Holds a Significant Market Share
Sport utility vehicles and multi-purpose vehicles have become increasingly popular among Spanish used car buyers in recent years. Consumers are always interested in the current SUV models, while dealers compete to offer SUVs and MPVs for this growing market. The preference for SUVs and MPVs among the youth may be the driving force for this segment among domestic buyers.
Moreover, the country has a vibrant travel and tourism industry, and tourists and locals alike prefer these versatile vehicles for their spacious interiors, accommodating both passengers and luggage comfortably. The robust design of SUVs and MPVs suits the diverse terrains encountered during travel, providing a sense of reliability. The demand for these used cars has risen significantly. They are expected to have a decent proliferation over the coming years in the wake of changing perspectives of consumers, as secondhand cars are no longer stereotyped with downsized social status.
- In March 2023, monthly used passenger car and sport-utility vehicle sales in Spain were at their highest, with over 178,180 used cars sold across the country. In contrast, March 2022 reported the lowest sales.
- Nearly two used cars were purchased for every new car sold in Spain in 2022. This used car-to-new car ratio peaked in 2021 amid the automotive semiconductor shortage and is projected to remain at 1.8 used cars per new car or above through 2025.
The rise in the replacement of older internal combustion engine vehicles with new electric vehicles by fleet operators is anticipated to drive the influx of used cars in the market, which is likely to reduce the overall cost of used vehicles. Furthermore, with the shortage of new vehicles in the market, the demand for used cars is anticipated to witness steady growth during the forecast period.
The Online Booking Segment is Likely to Play a Key Role in the Market
The online booking segment of the market is expected to occupy a predominant position during the forecast period. Consumers are moving away from traditional techniques and increasingly using internet platforms to acquire and sell used cars. Many European start-ups and auto portals are increasing their presence in Spain through mergers and acquisitions, collaborations, and other growth strategies, recognizing the industry's potential.
- Internet penetration in the country is relatively high. According to Statista, as of 2024, Spain had approximately 45.6 million internet users. It gained up to around 9.6 million online users over the last 10 years but registered its first negative growth rate since the beginning of the analyzed period, with around 0.09% fewer users than the previous year.
- As of June 2023, used diesel vehicles represented the largest share of the used vehicle inventory on online Spanish business-to-consumer marketplaces. Diesel vehicles were the most popular used car type based on online B2C sales in Spain in May 2023, amounting to 47.9% of the used car stock.
The development of online tools for sellers and buyers has made the market more competitive. In addition, the online availability of information, including prices, reviews, and specifications, leads to significant growth by dealers. With technically advanced tools integrating the latest technologies like artificial intelligence and machine learning, dealers are expanding their network and customer base. AI applications can evaluate the data stored in the dealer management system and aid in refining the marketing and sales strategies by modifying the car-buying experience.
- For instance, online sales channels such as CarMax and Impel are playing a vital role in country-specific market growth by targeting the domestic customer base. Various online channels are modifying their platforms to offer seamless car selling and buying experiences.
