Grandpa's cars: used car sales increased by 13%

In March, used car sales increased compared to February, but decreased compared to the same period last year. The situation on the used car market is somewhat different from the situation with sales of new models, experts say. Izvestia found out why Russians are in demand for models that have long been discontinued, and when to expect a mass appearance on the secondary market of Chinese cars.

Up and down

By the end of March, Russians bought 448.3 thousand used passenger cars. This is reported by the analytical agency Autostat. The result of the first month of spring is 12.9% higher than in February, but 10.7% less than in March last year, the agency notes. At the same time, in the first quarter of this year, the used car market grew by 3.2% compared to the same period a year earlier. In three months, almost 1.27 million used car purchase and sale transactions were completed in Russia.

Irina Frank, CEO of Frank Auto, explains the increase in sales of used cars in March compared to February as a seasonal factor. She notes that the demand for cars traditionally increases in the spring.

— Buyers who postponed transactions in winter due to holidays or difficult weather conditions are returning to the market. In addition, March often becomes a month of "financial start" for many — people receive bonuses or tax deductions, which stimulates purchases, the expert explains.

As for the decrease in figures compared to last March, Irina Frank believes that there was still a certain shortage in the new car market in 2024, which boosted sales of used cars. Now the situation has stabilized, which has reduced the pressure on the secondary market.

In March 2024, there was a serious rush for both new and used cars related to the introduction of new rules for customs clearance of cars, Maxim Kadakov, editor-in-chief of Za Rulem magazine, recalls.

— At the beginning of last spring, everyone rushed to buy cars, including used ones, expecting an early price increase due to new customs regulations. This is largely why the current used car sales result was lower than last year," Maxim Kadakov told Izvestia. At the same time, he noted, the March figures compared to February "could have been higher."

The situation on the used car market differs from that observed among new models, according to Sergey Tselikov, General Director of Autostat.

— There are no "waiting" here. What can you expect if there are fewer and fewer normal cars with mileage? — he noted.

Also, the problem of overstocking warehouses is less relevant for the used car market, says Roman Titov, Deputy General Director of Avilon AG for used cars. However, the time frame for the sale of cars in the price category above 5 million rubles has increased significantly, he emphasizes.

Young people engaged in "zhigulism"

Lada was the leader among the brands in March: 121.3 thousand such used cars were purchased in March. Toyota ranks second with 43.6 thousand units. Kia and Hyundai are on the third and fourth lines (23.8 thousand and 23.3 thousand cars, respectively), Nissan closes the top five (19.3 thousand cars). This is followed by Volkswagen (17.2 thousand), Chevrolet (16.1 thousand), Renault (just over 15 thousand), Honda (13.6 thousand) and Ford (13.4 thousand).

According to the results of March, the Lada 2107 sedan became the most popular model among used passenger cars in Russia, the production of which ended exactly 13 years ago, on April 17, 2012. In early spring, Russians bought 11.8 thousand. "sevens." The second most polar model, the Lada 2114 Samara-2 hatchback — 9.7 thousand copies. Places from third to fifth were taken by Hyundai Solaris, Lada 4x4 Niva and Kia Rio (approximately 8.4 thousand of each model were sold in March). This is followed by the discontinued Lada 2170 Priora in 2018 (8,3 thousand), Ford Focus (8,1 thousand) and Toyota Corolla (6,9 thousand). The top ten most popular used models are Lada 2190 Granta (6,4 thousand) and Lada 2110 (6,2 thousand), which have stopped producing more in 2007.

Maxim Kadakov explains the popularity of the sevens and other domestic models that have already been discontinued in the secondary market by the large circulation of these machines and the good demand for them among a certain circle of buyers.

— There are still a lot of them, especially in the regions. The same "sevens" are in the garages of the grandfathers. Grandpa doesn't drive himself anymore. So he sells it before it rotts completely. On the other hand, a young man who recently got his license wants to drive his car. But he doesn't have the money for a new car. And he can buy a conditional "seven" from the same grandfather, for a more or less adequate amount, which he can really save up in a couple of months," Maxim Kadakov notes.

When to expect used "Chinese"

It is noteworthy that, unlike the results of sales of new cars, where Chinese car brands occupy almost half of the market, they do not even get into the top ten most popular models on the secondary market.

Cars from China do not yet play a significant role in the used car market, since their mass import to Russia began only in 2022-23, Irina Frank notes. Most of them are still with the original owners, she emphasizes.

— In addition, Chinese models, unlike Lada or Toyota, have not yet passed the test of time in the eyes of Russians. Stereotypes about unreliability persist, and the service infrastructure is less developed," Irina Frank believes.

In her opinion, the mass appearance of Chinese cars on the secondary market can be expected by 2026-27. By this time, the first batches of "Chinese" will have reached the age of 3-5 years — the standard period of ownership before sale, she notes. However, their market share will depend on how quickly customers appreciate their real reliability and how affordable spare parts will be, the expert emphasizes.

Maxim Kadakov believes that the mass entry of "Chinese" into the secondary market should not be expected soon. The proportion of people who get rid of a car as soon as its warranty period ends (the same 3-5 years) is decreasing, he notes.

— Many people realize that they can no longer afford a new car in the foreseeable future. Therefore, the car's ownership period is increasing, including for Chinese models. I don't think that the "Chinese" will appear massively on the secondary market in the next two or three years," said the editor-in—chief of Za Rulem.

Maxim Kadakov believes that the only possible way for Chinese used cars to be available is for the first batches of such cars to be withdrawn from carsharing and taxi fleets as soon as possible. This is due to the achievement of the service life limit in these services, he explains. At the same time, the mileage and technical condition of such instances will clearly not be ideal, he warns. Offers to buy cars from taxis have already appeared on popular online services.

In its own juice

Irina Frank is confident that the used car market will remain key for Russians in the next year or two. New cars, even Chinese ones, continue to rise in price due to exchange rate fluctuations and logistical difficulties, she notes.

— The Lada brand, which dominates the secondary market, will retain the loyalty of potential buyers due to the availability of spare parts and ease of repair. The demand for budget models like the Seven or Hyundai Solaris will grow against the background of a decline in real incomes of the population," she shared her forecast with Izvestia.

In her opinion, the aging of the used car fleet is a serious risk: models that were discontinued many years ago are in the top of sales. Maxim Kadakov also notes the aging of models presented on the secondary market.

— The "recharge" of the used car market with relatively recent models is extremely weak. With rare exceptions, cars that are already in the country are being resold. In fact, the used car market is stewing in its own juice, which clearly does not contribute to the renewal of the fleet," said the editor—in-chief of Za Rulem.