The dealers became more profitable to sell cars with mileage

In 2015, the share of cars in total sales of automobile dealers increased in comparison with 2014 year by 8 percentage points to 23%, estimated trade magazine “Autobusinessreview” based on data from 4 thousand dealers. It sold 380 thousand cars, that is about the same as a year earlier. The increase in the share of used cars is due to the fall in new car sales by 35.6%, to 1.6 million units.

The share of used car sales dealers has grown in past years, but not as rapidly. According to “autobusinessreview” magazine, in 2011 it was 9% and grew further by 1-3 percentage points annually.

The entire market of sales of cars with mileage in 2015 decreased by 20%, to 4.9 million units. Most of the transactions still occur in the bypass auto centers — their share in the total increased from 6% in 2014 to 8% in 2015.

The drop in sales of new cars because of rising prices and reduced purchasing power has forced dealers to look for new growth points in the secondary market, says the President of the Association “Russian automobile dealers” Vladimir Marenkov. According to “AUTOSTAT”, the Russian market of used cars is three times more primary by the number of transactions and almost doubled in turnover: 3,2 trillion vs. 1.8 trillion rubles.

In 2014 from 7 dealers sold cars only one was used, but now the ratio of 4 to 1, says the chief editor of “autobusinessreview” Sergey Baranov. In the current environment, used vehicles became of great help for business dealers, agree Mozhenkov.

Among the five largest Russian auto dealers, the fastest increasing share of used cars Kazan “Transtekhservice” Vyacheslav Zubarev. In the previous two years, according to “autobusinessreview” magazine, the company increased the sale of cars with mileage from 12% to 26%. Zubarev these figures confirms. “The primary market has excess capacity (overall capacity of Russian dealers is designed to sell 3 million cars per year), development opportunities are very limited. Now we see the potential growth in the secondary market,” he explains.

The General Director of “Autogermes” Dmitry Polunin says that the yield from the sale of used car is about twice higher than the new, — 5-10%. Basic earnings dealer now receives additional services, the service and secondary sales, confirms commercial Director of “Autospeccentre” Alexander Zinoviev. Sale of a new car than to build this chain, he said.

In Western Europe on every new car sold by a used one, reminds Polunin. This ratio of Russian dealers will come in 5-7 years, says Baranov: “the Potential for growth in the share of dealer sales in the secondary market are: more and more people want to buy a proven used car with a guarantee of reliability”. Assessment Baranova, in the future, the dealer in the mass segment will sell one new car with three run in the premium class or two used cars for one new one.