Used car prices on the rise

Analysis

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Growing demand and the rising cost of aftermarket supplies have driven up domestic used car prices significantly, according to market analysis by Használtautó.hu.

The need for own cars and independent mobility is becoming more and more important in Hungary, and this is reflected not only in the growing interest in new cars, but also in used cars. 

The first half of this year has seen a recovery in the car market, with the new vehicle market showing an increase compared to last year, while the market for used cars, the most popular choice for Hungarians, is already showing positive differences compared to the pre-pandemic figures for 2019. The growing demand for cars is demonstrated by the fact that the number of searches on Használtautó.hu, which has been on the market for around 20 years, increased by 45% in the first half of this year compared to the same period last year, which was also confirmed by the increase in the number of sales, which rose by 5.7% in the first half of the year. Shoppers are also returning to the new car market, but there is still a 13% lag compared to the first half of 2019.

"While the majority of car dealers can hardly complain, the increasing demand for cars is not a welcome development for everyone. As in the construction industry, the price rise in the car market is a side-effect, or perhaps an after-effect, of the coronavirus. The price increase and longer delivery time of new cars - which may be due to the lack of chips - the exchange rate of the forint, more expensive imports and the increasing demand have also caused an increase in the price of used cars," said Mátyás Katona, expert at Használtautó.hu.

The average car price on the website rose by 32% in the first quarter of 2021 compared to the same period last year, and by the end of the second quarter, the average price of HUF 3.8 million was 49.9% higher than last year. Of course, not all used cars have risen to this extent, and the average price is also driven up by the higher prices of brand new cars, and even dealership cars.

The increased interest in the cheapest car category means that many vehicles are not even listed on the advertising site, because in many cases the sellers have already found a buyer in their circle of friends.

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