“Used car prices stabilizing as growth halts, says AOOA Chairman Jiří Grund”

“Price growth has stopped,” confirmed Jiří Grund, chairman of the Used Car Trade Association (AOOA). According to Aures Holdings, the median price of used cars has been around 200,000 crowns since December. The average used vehicle offered is ten years old and the tachometer shows 158,000 kilometers. However, anyone who would like to get rid of a used item purchased a few years ago will make money from it.

“In 2019, a two-year-old Toyota Yaris with a mileage of 20,000 kilometers cost around 249,000 crowns. This year, the same car is being sold with 65,000 kilometers for 282,000 crowns. In four years and after 45,000 kilometers, it is 33,000 crowns more expensive than when the owner bought it,” summarized Grund.

For example, a two-year-old Škoda Octavia purchased in 2019 with a mileage of around 20,000 kilometers increased in price by 170,000 crowns in three years, i.e. in this case by a third of the original price. A slightly used Fabia is today a quarter, or 74 thousand crowns, more expensive.

The range of used cars expanded in March. Aures Holdings recorded over 112 thousand cars on the market, the most in ten months, when the offer was stable between 90 and 100 thousand cars.

The most common model on the Czech market in March was the ten-year-old Škoda Octavia with a median price of 180,000 crowns and almost 190,000 kilometers on the odometer. It was followed by Škoda Fabia and VW Golf.

In March, there were 1,192 cars with a hybrid drive – an increase of almost 400 year-on-year – and 700 electric cars. There were a total of 330 more of them compared to the previous year.

If the owner sells his car through a car dealer, he should handle all the paperwork. However, if he carries out the sale himself, the seller must take care of the transfer of the vehicle to the new owner in the vehicle register, otherwise there is a risk that even if he no longer has the car, he, as the original owner, may be fined for example for speeding or bad parking. In such a case, it is possible to defend against the fine with a purchase contract, with the fact that the seller no longer operates the vehicle, but it is still an unnecessary complication.

An even bigger problem could arise if the new operator had an accident with an unregistered car and did not pay the liability insurance.

“If possible, do not hand over the vehicle or the vehicle documents and do not terminate the compulsory insurance before the vehicle has been transferred to the new owner. Don’t automatically rely on the buyer to take care of it,” advises Vladimír Krejzar, a lawyer at the Czech Office of Insurers.

According to him, it is better if the seller has the buyer prepare a power of attorney for the transfer with a verified signature. And it is best if the buyer and seller go to the vehicle registry together, but this is often not possible due to the distance between them.

“You must submit a request to register a change of owner within ten working days. If you do not do so, it is an offense for which the administrative body can impose a fine of up to fifty thousand crowns,” Krejzar reminded.