May 08, 2015, 12:34 / Auto

Sales of used cars fell by almost a third in April

Market dynamics have been deteriorating since the beginning of the year Yulia Gribtsova

A. Makhonin / Vedomosti

Prices are slowing down the car market

Sales of used cars in April decreased by 29.8% to 411,961, according to the analytical agency Autostat (in its calculations it is based on data on the re-registration of cars). Based on the results of four months, the situation looks a little better: the market amounted to 1.5 million units. (-22.7% compared to the same period last year), indicates Autostat. Market dynamics continue to deteriorate: in February the fall was 22.5%, in March – 24.3%.

Statistics of advertisements on Auto.ru show that the supply of used cars remained approximately at the level of March, the seasonal peak turned out to be unexpressed, says Roman Abramov, head of Auto.ru and Yandex.Auto. Moreover, April is usually a traditional month of growth for the car sales/purchase market. Year on year, the market sank, but compared to the beginning of the year, the number of transactions increased by 9%, so overall the market is recovering, he believes.

EY Automotive Practice Leader Andrey Tomyshev then linked the acceleration in the rate of decline in sales on the secondary market to rising prices for used cars during the first quarter, often to unreasonably high levels. This affected the cost of “fresh” used cars, to which new ones could become an alternative, he explained. The mass of goods on the market has also decreased due to a reduction in those willing to exchange a used car for a new one, explained one of the car dealers. Therefore, according to Tomyshev, owners of some brands are postponing sales in anticipation of rising prices for new cars of the same brands and, as a result, used ones.

Despite the rapid decline in sales, the situation in the secondary market is better than with new cars. According to Autostat estimates, in April 2015, 110,620 new cars were sold in Russia - this is 49% less than in April 2014. In January - April 2015, the market fell by half to 386,009 units, the agency indicated . The Association of European Businesses will release its April car sales data next week.

The failure in April was expected, said the manager of a large dealer holding: the ruble began to strengthen and buyers were waiting for prices to fall. However, in the future, dealers expect the market decline to slow down: the preferential car loan program launched in April is gaining momentum.