In the used car segment in the Baltics, there is active activity – the amount financed by Citadele Leasing for the purchase of used cars for leasing has increased by 12% this year.
Given that, as a result of the Covid-19 pandemic, car manufacturers have significantly slowed down the production of new cars this year as well, the delivery time of cars has increased significantly. Warehouses are increasingly being emptied, and customers have to choose from what is available rather than what their heart desires. It has also contributed to the domino effect – with growing demand for used cars, car prices have risen by an average of 20%.
“As our observations show, new car owners and rental companies that have leased them from us are no longer actively selling them on the secondary market and are not exchanging for new models as they would have been before the pandemic. The main reason – the stock of new cars on the market is almost non-existent, or their volume and number of brands are very limited. Operating lease agreements are extended or switched to finance, and thus little-used cars do not enter the market. As a result, the supply in the market has significantly decreased, ”says Ģirts Glāzers, Chairman of the Board of Citadele Leasing.
“Over the past six months, we have seen an increase in demand for used cars due to the difficulties in the new car segment in the production and supply chains. This factor has had a significant impact on the volume of used car re-supply. This trend is global and is being faced by car dealers around the world. Simply put, not enough used cars enter the secondary market. As a result, the price increase in the second-hand car segment (up to 5 years) compared to 2020 is about 20%, ”says Matīss Gibolis, Sales Manager of Moller Auto Baltic in the Baltics.
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