Why are the prices of used cars faster in Hungary?
08/05/2022 04:01
A recent survey carried out by the experts of carVertical examines the relationship between the age and value of passenger cars, and compares them with the trends in the EU to some specific features of Hungary.
The critical three years
Although a 5 car is not considered particularly old on the domestic market, the survey reveals that the loss of value already occurs in the first three years, i.e. the value of newly purchased cars falls the most in this period. the price of 3-year-old cars is only 59% of the original purchase price in Hungary. In other EU countries, the same value is 67%, which is a considerable difference.
Matas Buzelis, head of communication at carVertical, drew attention to the facts emerging from the data, that domestic used cars of all ages are cheaper than the average price in Western Europe. “Even the market price of five- to ten-year-old cars is almost 10% better in Hungary today than in other countries.
Car buyers should therefore treat outrageously cheap foreign cars with reservations. It may be attractive that they are apparently in good condition, but vehicles imported from Western countries are usually more expensive, so in the case of unusually cheaply advertised cars, there is the possibility that, for example, the odometer reading can be manipulated.”
In the fifth year, the dice are turned
So what age of cars should we look for if we are looking for a reliable, good condition and not too old vehicle, but we don’t want to face such a large amount of depreciation?
The automotive industry expert of carVertical draws attention to the situation outlined on the basis of the research, which is typical for both domestic and Western European conditions: cars that are around 5 years old have a much stronger residual value, so we buy significantly less money when we buy a vehicle of this age.
Matas points out that in the first three years the value of new cars drops by 41 Buzel cars, which means a serious loss – especially in the case of expensive models – it begins to smooth out from the value, so if you buy a 5-year-old car, in the next three years we can only expect a loss of 18%, which is orders of magnitude less.
The same indicator is only 15% in the case of a 6-year-old, and this downward trend continues reassuringly for car buyers in proportion to the increase in the number of years.
24-26 year old cars are the cheapest
What about cars that are well past their prime? In Hungary, cars manufactured between 1996 and 1998 are sold at the lowest prices, and typically the number of kilometers traveled by them also reaches its peak. The 25-27-year-old diesel vehicles ran an average of 310,000 kilometers.
According to car data, this value is 13-20 times higher than for diesel cars of a similar age on the market in several EU countries, which on average take their longest journeys up to 22-23 years of age.
Gasoline cars reach their maximum mileage sooner both at home and abroad. While in Hungary, 23-year-old cars accumulate nearly 22,000 kilometers, similar types in Western Europe have an average mileage of 19,000 km.
An old, preserved car can be a good investment
An interesting difference can also be discovered in the subsequent development of the value of domestic and foreign used cars. In Europe, the price of old cars starts to rise beyond a certain point. 17-20-year-old vehicles are sold at the lowest prices, but then the trend reverses. For example, the value of a 30-year-old car is almost the same as that of a 10-11-year-old car.
“In Hungary, on the other hand, the situation is different, because in general, the older a car is, the more used it is, and its condition is also worse than that of its Western European counterparts. In our country, the prices of 30-year-old veterans compete with those of 16-year-old cars, points out carVertical’s automotive industry expert, Matas Buzelis.
“However, we should not ignore the fact that cars with a flawless history and well-maintained can hold their value very well, so they can even be an excellent investment.”