Spain's booming used-car market worries automakers
Sales to private buyers started this year even worse than in 2019 with registrations down 14 percent in January versus a 7.6 percent drop in total registrations.
Industry association ANFAC said it is a worrying sign for the industry if families "prefer to buy an old car rather than a new one."
Whatever the reason, Spain seems to be doing little to remedy the situation. The country's tax on the resale of used cars is low at a maximum of 8 percent of the car's market value. Add to that the fact that new-car prices generally are about to rise and the reason for buying an old car gets stronger.
This means that small cars that were once the go-to choice of those on a budget, such as the Opel Karl, Ford Ka+ and Fiat Punto, are no longer profitable and have been axed.
What is happening in Spain could become a wider European trend, especially as sales of new internal combustion cars are likely banned across the region in the long term.
The used-car trend is worrying industry executives.