The second-hand vehicle market has experienced a golden age in the post-pandemic years, but commercial activity in the sector seems to gradually return to normal. And this Second-hand vehicle sales in the province of Alicante increased by only 1.4% last year compared to 5.7% the previous yeara loss of dynamism that had much to do with the release of new car production, which in turn reactivated operations in this segment.
The coronavirus health crisis has led to a collapse in distribution chains that has had a brutal impact on the automotive industry. Chip shortage paralyzes many factories. As a result, there was a rapid decline in new vehicle sales for three years after the outbreak of the epidemic, which also benefited the second-hand market. And this Many drivers who had to renew their vehicles had no choice but to resort to second-hand vehicles.Due to supply shortage at dealers.
However, as announced to the public last week, the situation began to change with the return to normality in production processes, with vehicle registrations in the province increasing by 22.5% and reaching 39,064 operations. We are still far from pre-pandemic numbers, but we are slowly getting back on track.
This recovery in sales was also reflected in the second-hand vehicle market, which, although it continued to grow, could not maintain the dynamism of previous years. According to the information provided by Faconauto and Ganvam, the main organizations in the sector, A total of 95,796 operations were formalized in the province last year.This represented an increase of 1.4 percent. Therefore, it is a far cry from the growth experienced in the previous year, when the recovery reached 5.7%.
The growth experienced at the provincial level was also below the 2.6% recorded at the national level.This allowed us to reach 1,950,488 sales. However, in the Valencian Community as a whole there was a decrease of 0.3%, with 217,898 operations.
In an analysis made by seniority based on the national development of the sector, we clearly see the following: One in four second-hand vehicles sold in 2023 was between zero and five years old The 5.5% increase followed as a result of stocks recovering as tensions in the supply chain were resolved. On the other side of the scale, second-hand cars aged 10-15 years closed negatively, with a decrease of 16.5 percent compared to 2022.
Despite this decline The average age of second-hand cars sold in 2023 was 11.1 yearsAccording to industry organizations, this indicates the need to implement more effective fleet renewal strategies, such as an incentive plan for the sale of vehicles up to five years old.