In the automotive sector, the majority assesses 2022 mainly through the prism of poor deliveries, long waiting times, near-zero inventories, crazy high prices and also higher profits. New car salespeople have benefited the most, but 2023 is a winning trend in the hands of used car salespeople.

In this blog, we present the reasons why, which are mainly focused on the predictions of many analysts who look at the used car market from different sides.

Closures during the COVID-19 pandemic have created an interesting situation – all manufacturers have produced fewer cars than originally planned, so supply has declined sharply around the world. As a result, all vehicles produced could be sold at a profit.The big discounts that were common in the automotive industry vanished overnight, and new car dealers took in record profits.

On average, new cars went up by 31%, while used cars went up by only 16%. In 2023, we can expect prices to start to falling, but there is no way to expect a return to the old days.

Why can you be optimistic?

The forecast for 2023 is that the supply of cars is likely to be higher than it was in 2022. Discounts on petrol and diesel cars are also expected to increase, while electric cars are in danger of falling out of demand (more on the reasons at the end of the article). However, most analysts predict a small increase in new car sales in Germany, but a decline in sales in France, England, Italy, and Russia.

In the case of used cars, the trend is on average three years behind, and the number of used vehicles available on the market in 2023 and 2024 will be lower, which means higher prices for at least two more years. Analysts predict that in 2024 the market will see a significant drop in used vehicle prices due to the stabilization of the stock of new vehicles. To sum up the findings of many analysts, they are convinced that used vehicle dealers will do well. It will be necessary to overcome problems with the purchase of cars, but you have already become quite accustomed to this in recent years ????

Our research (all findings are available in three parts here) also shows that more than 77% of buyers who will buy in the next six months want to buy a used car. This trend will not change for at least another year, as even those who plan to buy a car over a period of one year are more than 70% fond of used vehicles.

Various consultants have emphasized the importance of digital advertising in the automotive market for several years, and this year is no exception.If you are not there, someone else will overtake you and secure a market share that could be yours. That is why, as so many times today, we encourage you to at least try our help in this area. (This is available here.)

Beware of Electric Vehicles

In 2022, records from the segment of sold electric vehicles were reported from most countries, but subsidies for the purchase of electric vehicles are decreasing as of January 2023, especially in Germany, which is a very important market for Slovenia, and electricity prices are rising.. Forecasts for 2024 in Germany predict a half-decrease in electric vehicle sales, as people prefer gasoline or diesel for both reasons.

This is also well illustrated by our research among those buying vehicles in the next six months. The fuel with the highest share among propulsion types is gasoline, the second is diesel, and only then come both combinations of electric drives, which together have a 26% share.

From the very beginning, we wantedto offer you the most relevant statistics and data within the AutoBrief blog that would help you make key decisions and perform better.

Therefore, in cooperation with Valicon, we decided to do a survey that offers important data and insight into the thinking of Slovenian customers on a suitable sample. In the first part of the survey, we have already written down the types of cars and fuel types that customers think about most, as well as whether they want to buy a new or used car. We also looked at how many potential buyers will decide to buy a car in the next six months.

In the second part, we will show you which financing potential customers are most interested in and show you one of the greatest added values of our research. That is, we also have data on what customers want across different Slovenian regions.

Pay attention to leasing leads with quick credit.

Let’s start with financing. How do your future customers want to buy their new car? Will they opt for cash, leasing or a quick loan, perhaps a combination?

At the beginning of our survey, i.e. in the last quarter of 2021, the situation was interestingly tilted in the direction of cash payment. Only a little bit of cash was spent on leasing at 27%, and in third place was the loan at the bank.

The situation at the end of October 2022 is quite different. Most of your potential customers want to finance their new car purchases through leasing. It has a 41% share, cash is in second place with 23%, and in third place with the same percentage of credit at the bank and a combination of cash and quick credit.

Young people are also increasingly interested in credit or a combination of finance.

It gets even more interesting when we look at it from the perspective of different generations. The question was which methods of financing prospective buyers are thinking about, and foreach of them there were several possible answers (therefore, even in one column, there is no 100% total, but several). We can immediately see that leasing is far ahead of all other forms of financing, but cash and credit at the bank are also high.

Interestingly, fast credit is also rising very quickly, with high percentages seen in all four generations, including Generation Z. You can read why this generation is very important for car dealers here.

So you already have a financing provider that can also allow you to have fast loan financing for your customers? The data shows that this is almost a necessity.

Now we come to data that is very important for every trader. These are data related to the region itself and to the preferences of customers in these regions. As you will see, they are also quite different in some ways.

In the first part of the research (which you get here), according to the data, we wrote that most buyers who are thinking of buying a new car want to buy a used car. At the national level, 66% are such buyers. This share includes 33% of those who want a used car with a warranty and 33% of those who would buy it without one.

But the results are a little different here. In the Primorska and Pomurska-Podravska regions, more than 70% want to buy a used vehicle, while in the Posavska region, the percentage is by far the lowest, at less than 50%, and it is also low in Gorenjska, where it is just over 50%.

All dealers are interested in how many people are willing to buy a vehicle in the foreseeable future. Better yet, let’s just say the next six months. At the state level, 19% of people who participated in the survey want to buy a car in the next six months, and within a year, about 35% of all respondents want to buy a car.

Let’s look at each region. With the highest percentage of buyers who want to buy a car in the next half of the year, they can boast in the Posavje region, where this desire is present at more than 27%, followed by Pomurje-Podravina with an above-average result.

The latter region also has the highest percentage of potential buyers for those who will buy in the next year, and is above average in this segment, there is also a desire for buyers in Carinthia.

From the very beginning, we want to offer you the most relevant statistics and data within the AutoBrief blog that would help you make key decisions and perform better. Of course, data from European and world markets do not always show the situation on the Slovenian market, as it is different and special in many ways.

Therefore, in cooperation with Valicon, we decided to do research that offers important data and insight into the thinking of Slovenian customers on a suitable sample. Customers who may be on the verge of becoming your customers. That’s why it’s so important to see the research results.

The best thing about this research is that we obtain results every quarter and therefore we can also assess trends on the Slovenian automotive market.

Today, we would like to present you the results from the last quarter of 2021 until the end of October 2022. However, we will focus on the following indicators: the types of cars and fuel that customers think about the most, as well as whether they want to buy a new or used car. We will also look at how many potential buyers will decide to buy a car in the next six months.

New vehicles against used vehicles: 30% against 66%

The first statistic we want to show you is the relationship between new and used vehicles. The result is expected to be largely in favor of second-hand vehicles. As many as 66% of people considering buying vehicles would buy a used vehicle. This share covers 33% of those who want a used car with a warranty or guarantee and 33% of those who would buy it without a warranty.

On the other hand, only 30% would buy a new vehicle.

When we look at the period of one year, we find that the segment of those who want to buy a new car has not changed significantly despite the upward jumps, the trend is decreasing when buying a used car, and used with a guarantee increased by 4% in the third quarter of 2022, but is still slightly down.

Vehicle type: four categories with virtually the same proportion

Among the vehicle types, the above-mentioned research is dominated by 4 types, which practically divide the vast majority of the entire “cake”. In order, it’s a limo, a station wagon, an SUV and also a minivan.

The limousine remained at the same percentage in the last six-month period, while it had a significantly worse result in the first three months of this year. On an annual basis, it has a 3% higher share.

The best trend in the last three months is due to the SUV, which gained significantly in relation to the third quarter (7%), and has a higher share of 3% on an annual basis than the sedan.

On the other hand, the car is almost constantly at the same percentage, the trend is one quarter 1% up or down.

The winner on an annual basis is certainly a station wagon, which has increased its share by 5%. In particular, it was the most desirable vehicle in the first three months of 2022.

Fuel type: while petrol remains the king, electric propulsion has gained popularity.

When we look at the type of fuel that future customers want, it turns out that despite the great promotion of electric and hybrid vehicles, petrol and diesel still prevail. As much as 40% of the share still holds gasoline, and in second place, after a six-month drop, diesel propulsion was restored, which managed to jump by 7%.

Compared to the last trimester, the hybrid drive remained at the same level, but the 100% electric drive, which lost 5% in the last three months, fell considerably. It looks like it’s the diesel drive. However, it is still the electric drive that is the winner on an annual basis, as it has gained a share of 9%.

How many people would buy a car in the next six months? More than recently

Certainly, all traders are most interested in how many people are willing to buy a vehicle in the foreseeable future. Better yet, let’s just say for the next six months.

Within six months, 19% of the people who participated in the research plan to buy a car, which is significantly more than in the first summer of 2022. The percentage then ranged between 11 and 14, which can make all traders very happy. Even at the annual level, the desire to buy a car in the next year is 1% more.

About 35% of all respondents within a year want to buy a car,  which is about the same percentage if we look at the annual level. Throughout the year, the percentage of people who want to buy a car is very similar. However, the percentage of those considering purchasing in 2 or 3 years is falling.