With a market at half mast, after an exceptional year 2023the automotive sector sets up at Porte de Versailles in Paris (from October 15 to 20). In this gloomy context, manufacturers must meet numerous challenges: launch new models, face the establishment of foreign competitors in France, respond to the undeniable success of electric vehicles, especially within automobile fleets, invent alternative transport with the undeniable increase in license-free cars for the private market. Automotive professionals must adapt to new modes of mobility.
The used vehicle market is not experiencing the crisis. “It remains dynamic, due to the postponements of households whose budgetary constraints do not allow them to buy new property. So much so that, since the start of 2024, it has shown growth of 3.6%,” indicates Marie-Laure Nivot , director of automotive sector analysis at AAA Data. A relief for the actors who feared a boomerang effect after the excellent past years.
“A record of 6 million sales was reached, driven by the shortage of manufacturing in the factories. Prices had soared, particularly on recent models because the long-term rental companies which supply this channel had been forced to extend their contracts, refusing to renew their parks”, recalls Flavien Neuvy, economist and director of the Cetelem Observatory.
Cars over ten years old dominate this market
From now on, transactions are normalized while maintaining a respectable level. They have already exceeded the 3.7 million mark over the first eight months. Cars over ten years old confirm their dominance (48%), followed by those less than five years old (30%). Between the two, registrations experienced the largest increase (+ 5%) to stand at 22%, according to figures collected by AAA Data. “Prices have fallen significantly, particularly at the two extremes: the oldest and second-hand vehicles aged between 24 and 48 months are benefiting from the end of the supply crisis. For example, those of the Citroën C3 and the Peugeot 208 decreased by 1,200 euros (-9%) and 1,400 euros (-7.5%) respectively,” notes Romain Boscher, general manager of Aramisauto.
In terms of engines, gasoline still holds the upper hand (50%) and diesel remains stable (18%). The surprise comes from the strong surge in hybrids (+ 56%) and electrics (+ 74%). “Even if the latter only represent a volume of 2% of total acquisitions, which seems low. But their progression reflects a certain interest of the French who favor clean vehicles more than we thought”, analyzes Marie- Laure Vinot.
The offer is expanding, autonomy is improving, infrastructure is developing. “So many elements which encourage consumers to test electrified formulas. New, they cost 20% to 30% more than their thermal equivalents, while the differential falls to 10%, even 5%, for second hand, assures Romain Boscher, whether dual propulsion or battery only, they reach 20% of our orders, double the number a year ago.
The advance of certain countries also facilitates their availability. “The Netherlands adopted electric vehicles earlier than France. Good deals are more easily found there. As for Sweden and Norway, they offer more high-end hybrids,” says Fabien Leblanc, director of the strategy of the Auto Site.
Too many standards, too many devices
Still, confusion reigns. According to an Opinionway survey carried out for Aramis, 74% of low-income households say they are lost in the maquis of systems: end of the ecological bonus for used battery cars, social leasing, weight penalty, conversion bonus, etc. In addition, there remains confusion over the end date for thermal versions and the establishment of low-emission zones, the deployment of which is carried out in a disparate manner, or postponed until later. “Fortunately, flexibility and pragmatism prevail, otherwise many people would find themselves in great difficulty. Removing access to Crit’Air 3, 4 and 5 amounts to banning 40% of the fleet, or 16 million vehicles and as many motorists The social acceptability of this measure seems difficult,” points out Romain Boscher.
In fact, it concerns diesels produced from 1997 to 2010 as well as gasolines released from the production lines from 1997 to 2005. Moreover, 42% of French people admit to not knowing the classification level of their automobile. In the face of uncertainty, “more than two thirds of low-income households maintain their preference for technologies that have been proven for decades, reliable and robust,” specifies Romain Boscher. Before adding: “Half of those surveyed ready to buy a Chinese brand to save money would opt for fossil fuels.”
Preaching for his parish, the general director of Aramisauto believes that the reconditioned vehicle constitutes part of the response to the ecological transition: “It endures more than 200 checkpoints and a total mechanical compliance, which contributes to prolonging its lifespan. Better maintained, it pollutes less. “Convinced, low-income families want to obtain exemptions from driving in low-emission zones (82%) and even subsidies for its acquisition (84%), according to the. Opinionway study. The proliferation of reconditioning centers – around forty today – attests to this French craze for near-new refurbishments.
Increasing trust in professionals
In the uncertainty of future provisions, customers are massively turning to rental with option to purchase (LOA) so as to be able to switch more quickly to a model adapted to legislative constraints. “The LOA took off when prices had increased significantly. At the same time, the budget devoted to automobiles contracted sharply. Hence the success of this method of financing,” explains Romain Boscher. Thus, second-hand specialists now offer longer-term contracts in order to lower the amount of monthly payments.
In fact, confidence in professionals is increasing since they account for 58% of transactions, while those between individuals are running out of steam. It is also reflected in the expansion of online sales. “First, the confinement imposed during the Covid epidemic favored channels via the internet – there were no other means of obtaining cars. Then, we witnessed a real acceleration,” says Fabien Leblanc . This broker can attest to the credit given to experts. The buyer does not see the vehicle, nor does he know which dealership it comes from. He describes his research precisely.
“We source our supplies from all European countries. This allows us to find the right version more easily than if our customer were to prospect themselves within a radius of 200 kilometers around their home. In Poland, Italy, the Czech Republic and in Germany, the number of vehicles per capita is much greater than in France. More frequent renewals boost trade. Finally, we succeed in obtaining price differences of 10% to 25% compared to the French market. assures Fabien Leblanc. Paid on a fixed commission, the agent has no interest in promoting a particular model or brand. It authenticates the purchase contract, verifies the absence of unfair clauses, controls the regularity of interviews and the European conformity certificate. Finally, the service includes registration and delivery. A set of services that is becoming more and more attractive. Provided you can pay in cash. However, even if credit conditions become more flexible, the preference for long-term rental or with an option to purchase is lastingly anchored. Especially since the tax pressure is unlikely to favor purchasing power in the months to come.
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