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Germany Used Car Market Outlook to 2023

Surge in Multi-Brand Dealerships Coupled with Improved Quality and Inspection of Used Cars to boost Used Cars Market

Region:Europe

Author(s):Monika Singh

Product Code:KR915

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Published On

November 2019

Total pages

156

About the Report

The report titled "Germany Used Car Market Outlook to 2023 - Surge in Multi-Brand Dealerships Coupled with Improved Quality and Inspection of Used Cars to boost Used Cars Market" provides a comprehensive analysis of used car market in Germany. The report focuses on overall market size in terms of sales volume of used cars; Germany used car market segmentation By Market Structure (Organized and Unorganized market) both in terms of GTV, By Organized Market (Multi-brand Dealerships and OEM Certified Dealerships), By Unorganized Market (C2C, Online Sales and Local Dealers), By Car Make (Volkswagen, Opel, Mercedes, BMW, Ford, Audi, Renault, Skoda, Fiat, Peugeot and others), By Year of Manufacture (<2000, 2000-2002, 2003-2005, 2006-2008, 2009-2012, 2013-2018), By Kilometers Driven (Less than 5,000, 5,000-20,000, 20,000-50,000, 50,000-80,000, 80,000-120,000 and above 120,000) and By Type of used cars (Economy/Hatchback, MPV’s/Sedan and SUV’s). The report also covers the overall comparative landscape, trends and growth drivers, issues and challenge, decision making parameters, market share in terms of sales volume, strengths and weakness and government regulations in the market. The report concludes with future projections for all the segments described above and analyst recommendations highlighting the major opportunities and cautions for the Germany used car industry.
Germany Used Car Market


Market Overview and Size

The Germany used car market was observed to grow with a volatile growth pattern in the review period 2013-2018. The rise in internet penetration in Germany has been one of the contributing factors for the used cars industry as it has become convenient for the used car dealers to list the cars and tap a larger market of the country. Factors such as increasing online used car companies, geographical expansion of used car dealerships, availability of car financing and insurance options and others have helped the used car industry to grow in Germany in terms of sales volume.
 

Market Segmentation

By Market Structure (Organized and Unorganized): The organized segment was observed to dominate the used car industry both in terms of Gross Transaction Value (GTV) as well as sales volume. The organized used car market is leading in Germany owing to the services provided by these dealerships such as used car certifications, inspection of the used car, free services, refurbishing the car overall, offer documentation regarding the stringent inspection process, MOT and the transfer of ownership. The remaining market share was captured by unorganized segment.

By Organized Market (Multi-brand Dealerships and OEM Certified Dealerships):
The multi-brand dealerships recorded a larger market share in the organized used car market owing to the fact that the multi-brand used car dealers have various brands and models available with them and the consumers have the choice of comparing and then purchasing the used cars. Additionally, the organized used car dealers have a larger geographical presence in the country which allows them to tap a larger market share of the country.

By Unorganized Used Car Market (C2C, Online Sales and Local Dealers):
The Customer to customer segment dominated the unorganized used car market with a significant market share in the country followed by online sales and Local Dealerships. The customer to customer is preferred by the consumers who do not trust in purchasing a used car from an organized player or a local dealership in the country.

By Car Make (
Volkswagen, Opel, Mercedes, BMW, Ford, Audi, Renault, Skoda, Fiat, Peugeot and others): The most preferred used car brands in Germany were observed to be Volkswagen, Opel, Mercedes, BMW, Ford followed by Audi, Renault, Skoda, Fiat, Peugeot and others owing to the fact that the market share of the new car sales of the mentioned brands are high due to which customers have established a trust factor with these brands.

By Year of Manufacture
(<2000, 2000-2002, 2003-2005, 2006-2008, 2009-2012, 2013-2018): The used cars manufactured in the years from 2013 to 2018 have recorded the highest market share in the Germany used cars space in 2018. This segment recorded highest sales owing to the fact that potential buyers had a large variety of used car models to choose from. The segment was followed by cars manufactured between 2009 to 2012 segment.

By Kilometers Driven (
Less than 5,000, 5,000-20,000, 20,000-50,000, 50,000-80,000, 80,000-120,000 and above 120,000): The used cars driven between 20,000 to 80,000 km are the most in demand in Germany owing to reason that these will not release higher pollutant emissions and are also a little cheaper as compared to the used cars between 5,000 to 20,000 km.

By Type of Used Cars (
Economy/Hatchback, MPV’s/Sedan and SUV’s): Economy and Hatchback recorded the highest sales of used cars in the year 2018, contributing to a massive market share of the overall used car sales followed by MPV’s/Sedan and SUV’s. The young individuals ranging from 22-28 years in Germany prefer to purchase these cars due to a constraint budget.
 

Comparative Landscape

Competition within the Germany used cars market was observed to be highly fragmented along with the presence of large number of OEM certified dealerships, local dealers, multi-brand dealers and individual sellers. The major companies in the offline Germany used car market include Emil Frey Group, AVAG Holding SE, Dello-Durkop-Hansa-Group, Feser-Graf-Group, Senger Group, Weller Group, Gottfried Schultz, Tiemeyer Automobile Group and others. The major companies in the online used car market include Autoscout24, Mobile.de, Hey Car, Auto.de, True Car, BCA, Webauto.de and others. Major competing parameters include number of dealers, marketing initiatives, certification, margin, price, after sales, lead generation and types of warranty.
 

Future Outlook and Projections

Over the forecast period, the Germany used car market in anticipated to grow at a positive growth rate in terms of both Gross Transaction Value (GTV) and Sales volume. The new entrants in the used car market in Germany are contributing to the growth of this industry. The currently present used car dealers are also expanding their operations in different regions of the country to cater to a larger market, which is expected to augment the organized market in the used car industry in Germany. The implementation of the government policies such as WLTP, Emission norms and others has a slight negative impact on the used car market.
 

Key Topics Covered in the Report

  • Germany Used Car Market Introduction
  • Business Model Prevalent in Germany Offline Used Cars Market
  • Germany Used Car Market Size
  • Germany Used Car Market Segmentation
  • Snapshot on Germany Used Car Auction Market
  • Decision Making Process for Buying and Selling Used Cars
  • Trends and Development in Germany Used Car Market
  • Issues and Challenges in Germany Used Car Market
  • Snapshot on Germany Online Used Cars Market
  • Government Regulations in Germany Used Car Market
  • Competition Scenario in Germany Offline Used Cars Market
  • Germany Used Car Market Future Outlook and Projections, 2019-2023F
  • Analyst recommendations
  • Success Case Studies in India Used Car Market-OLX

Products

Key Target Audience

  • Offline Dealers
  • Online Portal
  • Organized Multi Brands Dealers
  • OEM Certified Dealerships
  • Online Portal
  • Private Equity and Venture Capitalist
  • Industry Associations
  • OEM Manufacturers
  • Automotive Manufacturers
  • Car Auction Companies

Time Period Captured in the Report:

  • Historical Period - 2013-2018
  • Forecast Period – 2019F-2023F

Companies

Key Segments Covered

By Type of Market Structure:

Organized Market

  • Multi-brand Dealerships
  • OEM Certified Dealerships

Unorganized Market

  • Customer to Customer
  • Online Sales
  • Local Dealers

By Car Make:

  • Volkswagen
  • Opel
  • Mercedes
  • BMW
  • Ford
  • Audi
  • Renault
  • Skoda
  • Fiat
  • Peugeot
  • Others (Seat, Hyundai, Toyota, Nissan, Mazda, Citroen, Smart, Kia, Mini, Volvo, Mitsubishi, Suzuki, Honda, Dacia, Porsche, Chevrolet, Alfa Romeo, Jeep, Subaru, Land Rover, Chrysler, Jaguar, Daihatsu, DS, Saab, Lancia, Lexus, MG Rover, Ssangyong, Sachsenring, Dodge, Iveco, Ferrari, Maserati, Cadilac, Infiniti, Tesia, Austin and rest)

By Year of Ownership:

  • <2000
  • 2000-2002
  • 2003-2005
  • 2006-2008
  • 2009-2012
  • 2013-2018

By Kilometers Driven:

  • Less than 5,000
  • 5,000-20,000
  • 20,000-50,000
  • 50,000-80,000
  • 80,000-120,000Above 120,000

By Type of Used Cars:

  • Economy/Hatchback
  • MPV’s/Sedan
  • SUV’s
 
Companies Covered:

Online Dealerships:

  • Autoscout24
  • Mobile.de
  • Hey Car
  • Auto.de
  • True Car
  • BCA
  • Webauto.de

Offline Dealerships:

  • Emil Frey Group
  • AVAG Holding SE
  • Dello-Durkop-Hansa-Group
  • Feser-Graf-Group
  • Senger Group
  • Weller Group
  • Gottfried Schultz
  • Tiemeyer Automobile Group

Table of Contents

1. Executive Summary

2. Research Methodology

2.1. Market Definitions

2.2. Abbreviations

2.3. Market Size and Modeling

Market Sizing Approach: Gross Transaction Value for Used Cars

Variables Dependent and Independent

Multifactor based Sensitivity Model

Regression Matrix

Limitations

Final Conclusion

3. Market Introduction

3.1. Market Overview (Market Evolution and Genesis, Current Market Stage, Competition 
Structure, Future Outlook and Emerging Market Trends and Timeline of Major Offline and Online 
Auto Classified Portals)

4. Business Model Prevalent in Germany Offline Used Cars Market

4.1. Offline Used Car Dealerships (Revenue Streams, Major Regional Presence and Profit Margin 
and Industry Life Cycle)

4.2. Working Model of Germany Used Car Dealerships

Transfer of Ownership

5. Market Size on the Basis of Gross Transaction Value and Sales Volume, 2013-2018

6. Market Segmentation, 2018

6.1. Market Structure (Organized and Unorganized), 2018

6.1.1. By Organized Used Car Market (OEM- Certified Dealerships and Multi-Brand Dealerships), 
2018

6.1.2. By Unorganized Sales Channels (Local Dealership, C2C and Online Sales), 2018

6.2. By Type of Used Car (MPVs/Sedans, Economy/Hatchbacks and SUVs), 2018

6.3. By Kilometers Driven (Less than 5,000 km, 5,000-20,000 km, 20,000-50,000 km, 50,000-80,000 
km, 80,000-120,000 km and Above 120,000 km), 2018

6.4. By Year of Manufacture (<2000, 2000-2002, 2003-2005, 2006-2008, 2009-2012 and 2013 -2018), 
2018

6.5. By Car Make (Volkswagen, Opel, Mercedes, BMW, Ford, Audi, Renault, Skoda, Fiat, Peugeot 
and Others), 2018

7. Snapshot on Germany Used Car Auction Market

7.1Closed Auctions

7.2Public Auto Auctions

7.3Manufacturer auctions

7.4Fleet auctions

7.5Dealer auctions

8. Decision Making Process for Buying and Selling used cars in Germany

8.1. Key Purchase Criteria for Buying a Used Car in Germany and Relative Weight age of these 

Criteria (Car Inspection i.e. Mechanical and Paper Work Check, Price and Negotiation, Channel 

of Purchase, Brand Image, Kilometer driven and year of ownership and Purpose of Purchase for 
Model Selection and Budget)

8.2. Key Sales Criteria for Selling a Used Car in Germany

Influence on Pricing Structure (Factors Influencing Customers to Buy Used Cars from the Dealers 
in Germany)

8.3. Pain Points Faced by the Customers in Germany (Lack of Transparency, Lack of Information, 
Defects and Financing Options)

9. Trends and Developments

9.1. Increasing Demand for Young Used Cars

9.2. Growing Online Listing of Used Cars

9.3. Lucrative Interest Rates Provided by Financial Institutions

9.4. Emergence of Multi-Brand Showrooms in Germany

10. Issues and Challenges

10.1. Asymmetric Information

10.2. Unorganized Market Dealing with the Older Cars

10.3. Diesel Crisis on the German Used Car Market

10.4. Lack of Inspection/ Quality Certification of Used Cars In Germany

11. Snapshot on Germany Online Used Cars Market

11.1. Overview and Genesis Including Trends and Developments, Future of Online Used Car Market 
and Competition Scenario)

11.2. Online Used Car Market Business Model (Listing based Model including the Working Process, 

Fee Charged and Cost of Listing; Subscription of the Advertising Model including Advertising 

Scenario / Process and Cost of Advertising; Lead Generation Model including Working Process and 

Fee Charged; Commission based Model including Working Process and Fee Charged; Auctioning Model 

including Working Process and Fee Charged; and Cross Comparison Between the Major Online Used 

Car Portals Including Listing of Used Cars, Global Ranking, Platform, Advertisement 

Subscription Fee and Revenue Stream in Germany, 2018)

11.3. Company Profile of Major Online Dealerships (Company Overview, USP, Key People, Key 
Statistics, Number of Employees, Advert Subscription Fee, Revenue Stream, Services and Awards 
and Financial Performance)

11.3.1. Autoscout24

11.3.2. Mobile.de

11.3.3. Hey Car

11.3.4. Auto.de

11.3.5. True Car

11.3.6. BCA

11.3.7. Webauto.de

12. Government Regulations in Germany Used Car Market

12.1. German Lemon Law

12.2. Importing Used Car in Germany

13. Competition Scenario (Competition Stage, Major Companies and Parameters on the Basis of 

which Companies Compete and Cross Comparison between Organized Used Car Dealers in Germany 

including Branches, Number of Cars in Inventory, Average Car Sale Per Branch Per Year and Used 
Car Sales Volume Per Year, 2018)

13.1. Strength and Weakness of Offline Used Car Dealerships

13.2. Company Profile of Major Offline Dealerships (Company Overview, Statistics, USP, Business 

Strategy, Additional Services, Employee Size, Recent Development and Regional Presence and 

Financial Performance and Timeline)

13.2.1. Emil Frey Group Germany

13.2.2. AVAG Holding SE

13.2.3. Dello-Durkop-Hansa-Group

13.2.4. Feser-Graf-Group

13.2.5. Senger Group

13.2.6. Weller Group

13.2.7. Gottfried Schultz GmbH & Co.

13.2.8. Tiemeyer Automobile Group

13.2.9. Other Players including Autohaus Wolfsburg Hotz and Heitmann Gruppe, Jacobs Gruppe, 
Auto Bierschneider, Autohaus Hofmann, DB Autohaus, Used car guys, Sixt Car Sales GmbH and Honda

14. Future Outlook and Projections, 2019F-2023F

14.1. By Gross Transaction Value and Sales Volume, 2019F-2023F

By Market Structure (Unorganized Sector and Organized Sector), 2023F

By Organized Sales Channels (Multi-brand Dealerships and OEM Certified Dealerships) and 
Unorganized Sales Channels (Customer to Customer, Online Sales and Local Dealerships), 2023F

By Type of Used Car (Economy/Hatchbacks, MPV’S/Sedan and SUV’s), 2023F

15. Analyst Recommendations for Germany Used Car Market

Suggestion 1: Introduction of Buy-Sell Concept to Reduce Inventory Cost

Suggestion 2: Financing and Insurance for Used Cars

Suggestion 3: Certification for Used Cars

Suggestion 4: Key Pocket Areas to Open Dealerships

Suggestion 5: Opting Omni-Channel Presence

16. Success Case Studies in India Used Car Market-OLX

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