Demand for used cars in Russia is recovering

Demand for used cars in Russia is recovering – in March it was higher than in February. However, there is no excitement similar to the market for new cars. In the secondary market, according to classification data, the volume of supply is growing, including due to trade-in transactions when purchasing new cars. Average used car prices fell slightly due to falling sales of more expensive premium cars.

In March, the volume of supply of used cars in the Russian Federation continued to grow. According to Avto.ru, almost 1.2 million such cars were posted on all Russian classified sites, which is 5% more than a year earlier, and 6% more than February.

In April, the number of offers of used cars increased by another 4% compared to March, says Daniil Shkurygin, development director at Avto.ru Business. “The main growth came from private sellers – by 6%, while dealers grew by only 3%,” he notes. Avito Auto reports an increase in offers in March by 9.3% year-on-year and by 10.6% year-on-year, and in April by 17.2% compared to the same period last year.

The number of offers for the sale of used cars grew, including against the backdrop of intensified transactions in the primary market, dealers note. Maxim Solodovnik, director of the used cars department at the Fresh automobile marketplace, explains that in March there were special offers for the purchase of a new car, and this, according to his estimates, led to an increase in supply volume by about 5%. At the same time, Mr. Solodovnik clarifies, sales of cars on the secondary market decreased by 5%.

Director of the Rolf used car sales department Vadim Chernousov adds that, for example, in sales of Chinese used cars there is “some stagnation, which is associated with active support for sales of new cars and the presence of large stocks in the dealer community.” But in general, he believes, “the dynamics of demand in March are consistently positive, cars with low mileage are especially in demand.”

According to preliminary data from Autostat, the used car market in March was 1.6% less than a year earlier, amounting to 490 thousand units. The secondary market is affected by the effect of last year’s high base.

The highest demand remains in the segment of fresh models with mileage in the budget from 2 million to 4 million rubles, says Roman Titov, Deputy General Director for Used Cars at Avilona. He doesn’t expect “a significant decline in customer purchasing interest.” Vladimir Zhelobov, director of the used cars department at Avtodom and Autospetscenter, also speaks about the stable demand for cars in good condition.

Demand has become lower year on year, according to Avito Auto. In March 2024, there was a drop in demand by 18.3% year-on-year, and in the first ten days of April – by 21.3%. However, compared to February, demand is 10.8% higher, notes Vadim Ivanov, director of the Automobiles department at Avito Auto. “Despite the news surrounding the tightening of the rules for paying recycling fees on cars imported from the EAEU countries, there has been no rush of interest in used cars,” confirms Daniil Shkurygin. According to him, in March compared to February, interest increased by only 7%.

Used car prices are falling. Thus, according to Avto.ru, prices among private sellers in March decreased for the first time since the beginning of the year: by 4% compared to February, to 1.4 million rubles. For car dealers, after an increase in February, the average cost in March decreased by 2.5%, to 2.1 million rubles, notes Mr. Shkurygin. Avito Auto calls the average price in January-March “almost stable”: fluctuations are less than 5%. At the same time, Vadim Ivanov notes, in March the average price was 1.14 million rubles, and on April 10 – 1.11 million rubles. Year by year, the cost has increased, he adds.

Vadim Chernousov says that in early April there was a noticeable slowdown in sales of premium used cars. “This leads to some slight reduction in the average cost of cars, but this does not have a very noticeable effect on the overall market,” he says. In addition, adds Daniil Shkurygin, while the price of cars has not yet been affected by the new rules for paying scrap fees when importing cars from the EAEU, “probably the reason is that cars imported under the new rules have not yet entered the market.”

Olga Nikitina