Among the most popular sedans in the secondary market among Russians, Lada Priora (see infographic) occupies the first place in terms of cost increase over the past year, with 19.1%. This is indicated in the work “Avto.ru”, prepared by order “socialbites.ca”. In their report, classification experts analyzed the change in the cost of the most popular 3-10 year old sedans in the Russian market, where Russians have been posting sales since November 2021.
As of November 2022, the average cost of a used Lada Priora was 482 thousand rubles.
The top three in terms of price growth dynamics included two more sedans from AvtoVAZ: Vesta (+17%) and Granta (+14%). Average prices in November reached 945 thousand 433 thousand rubles. respectively.
Next up is the Toyota Camry, whose price has increased by 11% (up to 2.6 million rubles). The top five are closed by Ford Focus with a three-volume body – 655 thousand rubles. (+7%).
Next up are sedans that aren’t priced too high: Volkswagen Polo, Renault Logan, Kia Optima and Rio, BMW 3 Series, Hyundai Solaris and Mercedes-Benz E-Classe. At the same time, the BMW 5 Series has become a little more affordable – the average cost has decreased by 1.6%, or by 52.5 thousand rubles.
Sergey Burgazliev, an independent automotive industry consultant, explains that the significant increase in the prices of used Lada cars is due to the increase in the popularity of these models, and the cost is due to the demand for solvents in the secondary market.
Due to the decrease in the income of the Russians, the purchase of the largest cars of the Russian automobile industry has become even more important.
expert states.
“Unfortunately, most of the population earns very modest incomes and these incomes are increasing for an extremely small strata of people, but for the majority these incomes are unchanged or decreasing. It’s no surprise that some of the cheapest cars on the secondary market are in peak demand, Burgazliev said.
– People can spend a maximum of 550 thousand rubles on a car from their income. Inexpensive AvtoVAZ models aged 3-7 years fit perfectly into this series.”
Sergey Udalov, managing director of the Avtostat analytical agency, agrees that the dynamics of prices for Priora, Granta and Vesta is explained by the fact that these are the largest and relatively budget cars. He notes that this year and last year, prices in the secondary market are rising faster for new cars in up to five years.
“Lada Priora was discontinued in mid-2018, almost five years have passed since then. The popularity of Priora has grown among citizens who need a relatively new car at a low price, ”Udalov explains in an interview with socialbites.ca.
Liquidity in the used car market primarily depends on the current technical condition of the car, the price and mileage of a particular car.
Russian preference has shifted to cars not older than 3-5 years – they are now seen as an alternative to new ones,
According to Vladimir Zhelobov, head of used car sales at AvtoSpetsTsentr Group of Companies. The director of Avilon emphasizes that inexpensive Lada models are in high demand, which is explained not only by their affordable price, but also by reliability and the absence of maintenance problems. Used cars” Nikolai Baskakov.
What’s next for prices?
Sergei Udalov from Avtostat is confident that after the New Year and until the end of winter used car prices will not fall. At the same time, according to the results of 2022, it predicts that the volume of the used car market will be 20% lower than the previous year.
“Prices peaked in the secondary market in March and April, after which cars started to get a little cheaper, but now prices are gradually increasing due to shortages. In our estimation, the weighted average price is increasing.
The analyst believes that in the near future, prices will either be at the current level or will begin to increase gradually.
The primary and secondary markets are interconnected – until there is an influx in the new car market and a significant drop in prices, Udalov notes, Russians will become more active in buying used cars. However, at the moment, about 30 thousand used cars are imported into the Russian Federation per month, while the volume of the entire secondary market is 450 thousand units. He says it’s not that much per month.
In October-November, there were changes in the used car market due to the departure of people from Russia. Many tried to get rid of their cars faster by lowering prices. At one point the supply increased and in some segments the prices fell slightly.
Sergey Burgazliev believes that if there is no shock, the market will stabilize by February 2023.
“Prices will gradually rise. Everything will be stable in the next quarter. I think there will be no factors that will greatly affect the growth or decrease in the cost of used cars in the coming year, ”the expert said.
Avilon’s Nikolai Baskakov points out that the cost of used cars has not changed in any way compared to September and there is no increase or decrease in prices in the secondary market at the moment. AvtoSpetsTsentr’s Vladimir Zhelobov states that in the coming months, pricing in the used car market will depend primarily on external factors, including fluctuations in exchange rates. It also expects pricing to be affected by the impact of pent-up demand built up in 2022.