Exploring the Future of Used-Vehicle Retail
As we look towards the future of used-vehicle retail, several key factors are shaping the industry. From the impact of trade tensions to the rise of battery-electric vehicle (BEV) volumes and the integration of artificial intelligence (AI), the landscape of used-car retail is evolving rapidly.
In a recent podcast episode of The Automotive Update, Autovista24 editor Tom Geggus delves into these topics and more. He discusses the potential bounce back of residual values (RVs) by the end of 2025, the influence of new-car list prices and supply on the market, and the latest model announcements that are making waves in the industry.
Residual Values Impact Retail
At the recent Used Vehicle Retail Summit in Frankfurt, industry experts gathered to discuss the current state of RVs in the market. EV Volumes director of content, Christian Schneider, highlighted the decline in values over the past two years, following a surge during the COVID-19 pandemic.
While supply and demand are starting to balance out, economic pressures and struggling economies continue to put strain on RVs. Tariffs on the European used-car market and the increasing sales of used BEVs are also contributing to the decline in RVs.
Can AI Benefit Retail?
Artificial intelligence (AI) is becoming an increasingly important topic in the automotive industry. McKinsey & Company partner Peter Cholewinski predicts a disruptive change on the horizon, driven by the development of large language models (LLMs).
Agentic AI, which allows for autonomous decision-making, is a key focus in the industry. Despite the challenges of implementing this technology, companies are starting to see the benefits. For example, McKinsey & Company project manager Dr Lisa Schrewentigges shared how an AI tool helped a German dealer group increase conversion rates and boost vehicle sales.
Will RV Declines Continue?
While RVs have seen year-on-year declines across European markets, there are signs of stabilization in some countries. Factors such as new-car list prices and supply levels are influencing the market, with some countries experiencing an uptick in RVs compared to the previous month.
New Model Announcements
Several major new model announcements have been making headlines in the industry. From the premium compact SUV Polestar 7 to Geely’s BEV SUV EX5, the market is seeing a wave of exciting new releases. Ferrari’s Amalfi, Mazda’s third-generation CX-5, the next Skoda Octavia, and the revival of the Lancia Delta HF Integrale are all set to make a splash in the market.
As the automotive industry continues to evolve, keeping up with these trends and developments will be key for success in the used-vehicle retail sector.
