Used Car Market in Hungary Sets New H1 Record

  • 20 Jul 2022 5:35 PM
  • Budapest Business Journal
Used Car Market in Hungary Sets New H1 Record
Nearly 432,000 cars changed hands in the domestic used car market in the first half of the year, according to preliminary data published today by DataHouse.

This figure is 7.4% higher than the volume in the first half of 2021. According to Joautok.hu, there is a realistic chance that the annual turnover of used cars will break the peak of 817,000 reached last year.

"This year, the domestic car market achieved its highest first-half turnover ever," stressed Bertalan Halász, CEO of JóAutók.hu. "Given that second-half turnover tends to exceed first-half levels every year, there is a strong chance that 2022 will see a record number of cars changing hands in Hungary on an annual basis."
 
Behind this unprecedented market activity lies a combination of factors. On the one hand, domestic car ownership is growing steadily. At the end of last year, the number of cars exceeded 4 million, up more than 21% from 3.3 million five years earlier. More cars are changing hands in normal market conditions.

However, the unique fact that the serious capacity problems of car manufacturers continue to shift demand away from the new car market and towards the used car market is also a key factor this time.

Although used car imports have increased by almost 10% in the first six months compared to last year, this source is also increasingly unable to meet the demand for quality used cars, as it is already becoming increasingly difficult to find a good used car at an affordable price in Western Europe.

The euro exchange rate of around 400 forints is a further complicating factor. Interested buyers are therefore increasingly turning their attention to the domestic market, which is also generating more sales and increasing price pressure for used cars.
 
Among used cars, the price of a few years old cars has increased more significantly, with this year's increase ranging from 15-30% depending on the model. Among older cars, the increase has been more moderate, but also in double digits: between 10-15%. The market expects this upward trend to continue in the coming months.
 
In the Hungarian second-hand car market, lower mid-range cars (29% of transactions) and small cars (22%) are the most common vehicles to change hands,

The Opel Astra, Ford Focus and Volkswagen Golf are the most popular models in the lower mid-segment. The Suzuki Swift tops the list of small cars, followed by the Opel Corsa and Volkswagen Polo. Among the top 10 most popular models, the upper-middle category is represented by the Volkswagen Passat and the BMW 3 Series.

  • How does this content make you feel?

XpatLoop Media Partner

Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.

Explore More Reports

  • Annual Inflation Hits New 21-Year Record

    Annual Inflation Hits New 21-Year Record

    • 11 May 2022 10:14 AM

    Consumer prices in Hungary grew by an annual 9.5% in April, up from 8.5% in the previous month, the Central Statistical Office (KSH) said on Tuesday.

  • Hungarians Are Less And Less Fond Of Online Shopping

    Hungarians Are Less And Less Fond Of Online Shopping

    • 23 Dec 2021 10:15 AM

    The growth rate of web purchases has slowed down, half of what it used to be. 10-12 percent of shop-related spending is online. For the third year in a row, the share of foreign online store purchases is 40 percent of the nearly two thousand billion forints of total money spent online.