The winter sale is here – now the prices of used cars are falling

The end of the year is a golden time for car buyers. During the last months of the year, prices on the used car market often drop by several percent, according to statistics from car broker Kvdbil .
– We see a clear seasonal variation, similar to that in the housing market. Right now is an excellent time to strike, says Daniel Odsberg, sales manager at Kvdbil .

The pattern is clear – used car prices fall in the fourth quarter, then increase again in January. Over the past three years, the price decline during this period has been between 1.6 and 5.3 percent, compared to levels in the third quarter.

This is evident from the Used Car Price Index (BPI), which is compiled by Kvdbil 's sister company Bilpriser with data from sales on kvd.se. Last year, the price drop was particularly significant, landing at -5.3 percent.

– Last year, the price drop was greater than usual, probably because the economic situation was at its toughest at that time. Many households and companies were affected by higher costs and uncertainty, which contributed to the prices of used cars falling even more. Now the situation looks somewhat brighter, but this seasonal variation is recurring and creates an excellent situation for car buyers every year, says Daniel Odsberg.

Biggest price drop on rechargeable cars

Different fuels are affected in different ways in the fourth quarter. Last year, prices fell the most for electric cars, with a decline of 7.7 percent. The year before, plug-in hybrids saw the biggest decline, with a 6.0 percent drop. In 2021, gasoline cars were the most affected, with a price decrease of as much as 11.6 percent. At the same time, prices for electric cars and plug-in hybrids rose, with increases of 4.8 and 7.5 percent, respectively.

However, Daniel Odsberg points out that 2021 was a different year, characterized by the effects of the pandemic, with long delivery times for electric cars and a sharp sales loss in the fourth quarter that particularly affected the fossil segment.

– If you look at the difference between different fuels, the safest conclusions can be drawn from the last two years, and then the rechargeable supply has shown the weakest development. The generally lower demand during this period when there are a little fewer cars in the showrooms, hits models in the higher price segments where most electric cars belong particularly hard. So for anyone considering a rechargeable car, this is a perfect time to take action, says Daniel Odsberg.

Historical price development for used cars in the fourth quarter

The comparison refers to price developments between October–December and July–September, based on the Second-hand Price Index (BPI).