We import and buy older and older cars on credit – Finance

  • We started importing older and older cars.
  • More than 63% of vehicles registered for the first time in Poland in the first four months of 2022 were over 10 years old.
  • For comparison, at the end of 2021, this indicator was below 58%.
  • This is also the case with car loan companies. The average age of a car purchased on loan from Cofidis after the first quarter of 2022 was over 8 years old, whereas in the previous two years it was just over 7 years old.

Data from the Polish Automotive Industry Association shows that in the first four months of 2022 we started importing and buying older and older cars. The share of vehicles older than 10 years registered in Poland for the first time increased to 63.1%. By way of comparison, at the end of 2021, this ratio was 57.8%, and a year earlier it was 55.5%. Before the pandemic, i.e. in 2019, it was even lower – 54.5%.

The effects of this phenomenon are also reflected in the statistics of younger cars. According to PZPM data, in 2019 we imported just over 11% of vehicles up to 4 years before the pandemic. Last year, the share of cars up to 4 years old reached 9.9%, and after the first four months of this year it fell to 8%.

There are problems with the availability of new cars throughout Europe. This, on the other hand, means that there are significantly fewer young cars – 4 or 5 years old (e.g. after leasing) on ​​the used car market. It’s just that customers drive their cars longer. At the same time, the prices of these cars can fluctuate at a level similar to their purchase price… Therefore, customers are looking for an alternative in the form of older used cars. Higher prices and the general lack of availability of cars in squares in Europe means that increasingly older vehicles are being imported into Poland – explains Marcin Szulc, Sales and Business Development Director at Cofidis.

We offer a credit for the purchase of ever older vehicles

In the portfolio of cars purchased on credit, the structure is slightly different from that of all imported cars, as customers borrow money to buy more expensive and newer cars. However, you may also see a decline in the percentage of auto transactions for up to 4 years. After the first quarter of 2022, it was 19%.

– At the end of 2020 and 2021, this percentage was close to 30%, but already in the second half of last year, a decrease in the importance of automotive transactions up to 4 years was visible. For comparison, in the last year before the pandemic, i.e. 2019, one in four cars we borrowed were no more than 4 years old. – lists Marcin Szulc.

On the other hand, there is an increase in the importance of transactions in the automobile segment between 5 and 10 years. Already 52% of cars credited by Cofidis this year are between 5 and 10 years old. In the previous three years, these values ​​fluctuated around 44-46%. The share of cars over 10 years old in the case of those purchased on credit this year reached 30%. In the last two years, it was 26%.

According to Cofidis data, the average age of a car purchased on credit after the first quarter of 2022 has exceeded 8 years. In the years 2020-2021 it was a little over 7 years. The trend was positive since in 2019 the average was 8 years. As you can see, the situation has turned around and we are back to where we were two years ago. For example, in the Pomeranian Voivodeship, in the first quarter of 2022, customers credited the purchase of a car that was almost 10 years old. Customers from the Lubelskie Voivodeship borrowed money for nine-year-old cars. On average, cars credited in the provinces of Kujawsko-Pomorskie, Lubuskie and Świętokrzyskie were seven years old. In the other regions, it was on average eight-year-old vehicles.

Newer cars will always be hard to find

Unfortunately, it is to be expected that in the coming months the imported cars and therefore the credited cars will get older and older. This phenomenon is a derivative of the whole sequence of events. The pandemic has disrupted parts supply chains, especially the semiconductors needed for modern cars. In addition, there have been limitations in the production of these components, for example due to fires or droughts, which has led to a shortage of water needed for their production. Additionally, for a smaller number of semiconductors, automakers have had to compete with electronics manufacturers, who have seen an increase in demand for their products due to changes in the way they do business. All of this has resulted in the limited availability of new vehicles. Unable to buy a new car, customers started looking in the secondary market. This reduced the availability of relatively new used cars and drove up their prices. Today, problems with the availability of parts and new cars are exacerbated by the political and economic situation in the world. This means that it will be difficult to speak of a reversal of this trend in the near future.

Cars are getting more and more expensive

Although we buy older cars, we spend more on them. Data from Cofidis shows that the average car purchased on credit by its customers in the period from January to March 2022 cost more than 53,000 zloty. Meanwhile, throughout last year, the average credited vehicle value was less than 50.5 grand. zloty. In 2020, it was less than 42.5 thousand. PLN, against 38 thousand. PLN a year earlier. So if you compare the pre-pandemic period to the current situation, you can see that you have to spend up to 40% more on a used car.

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