Last year saw a price rally in the used car market. With long delivery times due to semiconductor shortages, increased export prices and inflation, prices soared – and 2023 has continued in the same vein.
Statistics from Wayke show that the average price of a used car is now 25 percent higher than two years ago and 11 percent higher than last July. According to the car trading site, the average price for a used petrol car in July was SEK 221,000, and SEK 220,000 for a used diesel car.
“The rate of inflow is slowing down”
At the same time, supply is dwindling, among other things as a result of a weak krona and a difficult economic situation for many Swedes.
— People simply have less in their wallets as interest rates are now, which is a factor. New car sales have decreased and often when a new car is sold, another car is replaced which is sold as used. When that pace decreases, so does the influx of used cars, says Sofia Forsling, Sweden CEO at Wayke.
— The krona is weak, so the export of newer used cars has increased very much. It is also a factor in the fact that the supply is extremely low.
Electric cars exception
Compared to fossil-powered cars, used electric cars, on the other hand, go against the grain. There, prices have plummeted by 24 percent, while supply has increased by 426 percent in the past year, albeit from low levels.
— Rechargeable cars account for 5 percent of the used market, so it’s still a small part. But it is increasing rapidly. If you are thinking about exchanging a used fossil car for a used electric car, it can be a good move now that the prices of used electric cars have fallen while you still get paid well for a fossil powered car, says Sofia Forsling.