Market normalization for pre-owned electric vehicles persists, according to AutoScout24.de
Europe's Used and New Car Markets Show Different Trends
The used car market in Europe is thriving, demonstrating resilience compared to the struggling new car market. Demand, inventory, and ownership transfers have remained at last year's levels, and average vehicle turnaround times have stayed largely consistent.
According to recent reports, the used car market is expected to reach USD 59.12 billion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 4.42% through 2030. This growth is driven by increasing OEM-backed Certified Pre-Owned (CPO) programs and more ex-lease vehicles entering the market as fleets electrify.
On the other hand, the new car market is nearly stable but sees rapid growth in electric vehicles (EVs). The market is mature but faces regulatory pressures pushing EV adoption strongly. In the second quarter of 2025, the new electric vehicle market in Europe surged by 20.5%, reaching a 12% share of total new car sales.
Used car prices in Europe increased by 5.1% in the first half of 2025. Gasoline car prices rose by 7.4%, while diesel prices increased modestly by 2.2%. However, hybrid and electric used cars saw relatively stable or slightly declining prices, with EVs becoming significantly cheaper compared to last year.
The average price for used EVs in June 2025 was 34,804 euros, approximately 25% higher than the average across all powertrain types. Notably, the Renault ZOE, Tesla Model 3, and Audi Q4 e-tron have seen price decreases of 11%, 16%, and 18% respectively in the used EV market.
The new car market is affected by stricter CO2 emission regulations, which also widen the price gap compared to used cars. This regulatory pressure partly drives used car demand and influences pricing dynamics.
In terms of inventory, the used car market is around a quarter below the pre-COVID-19 level of 2019. The supply of older, cheaper vehicles is growing in the used car market, with very young used cars and ex-leasing vehicles dominating the offerings.
In contrast, the new car market experienced a 5% decline in registrations during the second quarter of 2025, with a 14% drop in June compared to the previous year. The absence of manufacturer campaigns and market uncertainty are dampening demand in the leasing market, although the leasing offer on LeasingMarkt.de remains high despite a decrease in demand.
Overall, the used car market benefits from regulatory and digital transformation trends, making near-new used cars more attractive. The new car sales focus heavily on electrification and compliance with emissions rules. The used car market remains relatively stable, with approximately 1.6 million vehicles changing hands in the second quarter, a 1% decrease in June compared to the same period in 2024.
[1] MarketWatch [2] AutoScout24 [3] Reuters
- The growth in the used car market, predicted to reach $59.12 billion by 2025, is driven by advances in technology, such as OEM-backed Certified Pre-Owned (CPO) programs and the increased availability of ex-lease vehicles, especially those from fleets electrifying.
- In the realm of finance, while the average price for used EVs in June 2025 was 34,804 euros, still significantly higher than the average across all powertrain types, models like the Renault ZOE, Tesla Model 3, and Audi Q4 e-tron experienced price decreases of 11%, 16%, and 18% respectively in the used EV market, making them more financially attractive.
