Many crashed cars are imported into Bulgaria, which are then resold in Europe
Due to the supply crisis and the increase in the price of new cars in 2022, used car prices have increased significantly across Europe, including Bulgaria. Several experts believe that the all-time high for older vehicles has been reached and that prices will stop rising next year.
At present, it is difficult to find cars up to 5 years old that cost less than BGN 20,000 in our market. In the largest used vehicle sites in our country at the moment there are offers that can be counted on the fingers of one hand. They are a few dachas and pegas for whole kilometres. All other offers start at BGN 20,000, which is how much basic versions of the brand new mini-cars cost before the COVID crisis. The situation is the same for 10-year-old used vehicles, except that prices start at BGN 10,000 and above. Mass offers for cars of this age actually start at BGN 13,000 for models in the small class such as the Citroen C3, Skoda Fabia and Nissan Micra.
The high prices of used cars in Bulgaria, which according to some dealers are
jumped up to 50% in the last 2 years,
are also due to limited imports. The deficit is due to the increase in the price of used cars in Western Europe and to higher demand. Most of the used cars you find in front of car dealerships in Germany, Switzerland, France, the Netherlands and Belgium are unsaleable because they are too expensive by our standard.
Mostly damaged cars and those with defects come to us. However, after being repaired by the Bulgarian tinsmiths and mechanics, most of them return to the West, mainly to Italy, where they are resold at higher prices than can be obtained in Bulgaria, and in most cases with a higher mileage.
In Germany (the largest used car market in Europe) they calculated that this year for all models the price increase was 19% compared to the previous year. This is the result of the current AutoScout24 Used Car Price Index (AGPI). The average annual price of used vehicles in Germany is a staggering 27,497 euros, an all-time record.
One of the main reasons for the significant price increase on the used car market is the lower supply. Advertisements for the sale of diesel cars are down 23 percent this year, and for those with petrol engines down 27 percent. 39 percent less supply than in 2021 for electric cars, 23 percent for hybrid vehicles.
Used car prices are at an all-time high and will likely drop soon,
however, Volkswagen’s finance department has predicted.
The CFO of the German auto giant, Frank Fiedler, even believes that prices are already slowly falling as people anticipate a recession and are more cautious about spending money.
According to experts, the end of the period of cheap loans will also play a role in halting the rise in used car prices. The German portal AutoScout24 also estimates that electric cars are significantly more expensive. On average, a used electric car costs 43,968 euros, or 30 percent more than in 2021. Hybrid vehicles have risen in price simultaneously by 17 percent to an average price of 41,844 euros.
Used petrol cars in Germany have risen in price by 20% to an average of €24,886, while buyers of diesel cars are paying 17% more this year, or an average of €29,496. With a price of 17,461 euros, petrol cars are among the cheapest used cars.
The van segment shows the greatest growth,
with asking prices up 19% this year to an average of €23,662. Small cars jumped by 18% to an average price of 13,795 euros. Mid-range cars (€27,209) sold 17% more, while compact cars were 16% more expensive with an average price of €21,001. The most expensive sports cars cost just 5% more, but still have a solid average price of €64,119 in Germany.
