Second-hand cars: the Argus suspends its rating for the duration of the containment period.
You were planning to have your car taken back by a professional but the confinement prevented you from doing so? Good news: you can hope to resell it in May at the same price as two months ago.Indeed, the Argus has decided to suspend the trade-in rating for used vehicles (cars, motorcycles and utility vehicles) for the duration of the lockdown.
This is a historic decision taken by the group, in the face of the exceptional health and economic crisis that France is going through: the Argus rating had never been frozen since 1940.”It is a strong act that will benefit both professionals, so that they do not lose the value of their stock, and individuals, to protect their purchasing power,” Olivier Flavier, CEO of the Argus group, told actu.fr.
Avoiding a depreciation of 180 million euros
Let’s take a concrete case: a car that was worth 6,000 euros in mid-March, should only be worth 5,800 in mid-May.”The value decreases whereas during the two months of confinement, the car was not used by the private individual and the professional kept it.dans son stock puisque il n’a pas été autorisé à faire de ventes “, détaille le patron du groupe qui appartient à Leboncoin.
With the freezing of the Argus listing for the duration of the containment, the group estimates that it will allow professionals to avoid “a depreciation of their stocks of about 180 million euros”.This calculation is based on the 400 000 second-hand vehicles in stock in France, with a total value of almost EUR 6 billion – bearing in mind that a second-hand vehicle sells for an average of EUR 15 000.
Little effect on personal-to-personal sales
“Individuals are also beneficiaries of this measure since they have not been able to have their vehicle taken back by a professional since mid-March,” Olivier Flavier continued.They will therefore be able to consider the sale of their property on the same basis of negotiation as before the confinement.
It should be noted that this freeze concerns only the trade-in quotation and not the market quotation, i.e.the quotation indicated by private individuals when they sell their second-hand vehicle without going through a professional.”It’s the rating you see on the Good Corner ads, for example.But it hasn’t budged since there have been no sales in the last two months.”
What impact will deconfinement have?
A big question remains for everyone: what effect will the deconfinement have on the second-hand car market? “It’s difficult to say, we’re not in the habit of anticipating the market,” reacts the Argus director general, who nevertheless imagines two opposite scenarios:
Either the French will prefer the car to public transport, for health reasons, and if the summer holidays are confined to French territory this could also favour the market.Either the deconfinement is progressive, teleworking is still very much encouraged, and therefore one does not use the car.And we don’t know if and how consumers will inject money back into the economy after the crisis…
In France, about 5 million second-hand cars are sold every year, compared to 2 million new cars.Of these 5 million, 2 million transactions are made from professionals to private individuals and 3 million from private individuals to private individuals.