Sales of new cars are falling, but in the used car market, sales are stable. At Askeladden-owned Rebil, things are boiling well.
HAVING GREAT PROGRESS: Head of analysis and founder Jonathan Parr at the used car dealer Rebil is not worried about the market outlook. He predicts that Rebil’s turnover will double this year. Photo: Adrian NielsenPublished:
Less than 40 minutes ago
Updated just now
Copy linkCopy linkShare on FacebookShare on FacebookShare by emailShare by email
New car sales have fallen since the summer and 2023 is now set to be a year with sales far below what we have seen in the last couple of years, according to the Road Traffic Information Council (OFV).
In October, 28.9 per cent fewer new cars were registered than in the same month last year, recent figures from OFV show.
However, the market for used cars remains stable – and rightly so. So far this year, the level of used car sales is barely above last year’s level.
This is well felt at the used car dealer Rebil.
Read on E24+
New trend: Europe buys Norwegian used cars
– We need more cars to sell. We have more to do than ever before, says head of analysis and co-founder Jonathan Parr at Rebil to E24.
– It’s doing well and there are many people who want to buy a used car every day, he says.
Price drop on used cars
Rebil started in 2021, during the pandemic – a time when customers were willing to pay more for a used car than have to wait for a new one, according to Parr.
– Now the waiting times for new cars are almost gone, at the same time that people want to spend less money on cars, he says.
– This is the reason why new cars are piling up and that the most expensive models in the used car market fell the most in price. But even though prices have fallen, that doesn’t mean people stop shopping.
CAREER CHANGE: Jonathan Parr is a former top footballer with a past from, among others, the English Crystal Palace. Today he is the founder of Rebil. Photo: Adrian Nielsen
Used car prices have fallen much more than normal this year as a result of some manufacturers reducing the prices of new cars.
After Tesla announced sharp price cuts on several of its models in January, investment director Robert Næss at Nordea predicted, according to NTB, a collapse in the used car market for the Tesla Model Y, which was reduced by NOK 120,000.
Rebil is nevertheless experiencing strong growth.
In 2022, the company, which is part of the start-up factory Askeladden, had a turnover of NOK 178.4 million. The annual result ended at minus NOK 22 million. This year, the company estimates that it will more than double its turnover, to NOK 400 million.
– We challenge the industry by making things easier without making it more expensive, says Parr.
He says that Rebil offers 14 days open purchase.
– We have given people a new way to buy and sell used cars. This explains much of our growth, he says.
also read
Experts: This is why Tesla runs yo-yo prices
Describes “very demanding” market situation
On the owner side of Rebil we find Norway’s largest car dealer chain Møller Mobility Group. Møller owns just over 21 percent of the founding company, where Askeladden & co is the largest owner with 55 percent.
Møller sells both new and used cars, and on Tuesday this week reported a solid result in the second quarter, despite a large order bank of new cars. A good development in both the service and used car markets picked up.
also read
New car sales have fallen by 10 per cent in the past year
The market situation for new cars is now “very demanding”, according to CEO Petter Hellman of Møller Mobility Group.
– The combination of increased interest rates, high inflation, increased taxes on electric cars and increased price competition means that order intake is significantly lower than last year, Hellman said in connection with the presentation of the results, according to NTB.
Hellman further said that the market outlook is challenging.
– We expect that increased interest rates, uncertainty and strong competition will affect the new car market in 2024 as well, which will put pressure on earnings development, he said.
– Sales are going in crab gear
It has been clear for several months in the new car market that increased interest rates and strong price growth are being felt by households, according to the Road Traffic Information Council.
– Many people are now very careful about prioritizing new car purchases, says OFV director Øyvind Solberg Thorsen in a message.
– The registration figures for new passenger cars in October clearly show this, because in the same period in the last couple of years we have had a high registration rate. Now new car sales are really going into high gear, he says.
also read
Awaiting the interest rate situation: – Could be a rather boring Christmas present
The industry now reports “very low contract entry”, according to OFV.
Solberg Thorsen predicts that the total for the year will be just under 130,000 first-time registered new passenger cars in Norway.
In any case, it is well below last year’s figure of 174,000 new passenger cars.
SEES SLOW SALES: Director Øyvind Solberg Thorsen of the Road Traffic Information Council. Photo: Terje Bendiksby / NTB
Rebil is not worried that the slow sales will spread to the used car market.
– If the used car market were to collapse, it would be because Norwegians no longer afford cars, says Parr.
– For many, getting rid of the car is simply not an option. It is necessary to make everyday life go up.
He predicts that sooner or later the market will turn, so that used cars will become more expensive and it will be easier for new car dealers.
– It will be good for the entire industry. We already see that some models have passed the price floor, says Parr.
New trend: Used car exports
In the last couple of years, exports of used cars from Norway to Europe have increased sharply.
– This market almost didn’t exist when we started, says Parr.
A stronger Norwegian krone has made Norwegian cars cheaper for foreigners, he points out.
also read
The weak krone is changing the Norwegian used car market: – There has been a tremendous increase
– If the Norwegian krone were to strengthen significantly, we expect demand from abroad to drop. In that case, the prices of used cars will fall, says Parr.
At the same time, second-hand imports have almost stopped, according to figures from OFV.
Only 3,532 passenger cars were imported used this year – 73.6 per cent fewer than at the same time last year.
2023-11-03 20:26:11
#cars #sell
