02 September 2025
With many European applyd-car markets observing residual value (RV) declines during August, what comes next? Autovista Group editors plot their expectations with Autovista24 editor Tom Geggus.
RV developments trconcludeed towards stagnation and decline across many European applyd-car markets during August.
On average, the absolute trade value of a 36-month-old car at 36,000km fell month on month in Austria, France, Italy, Switzerland and the UK. The only markets to avoid this fate were Spain and Germany. They saw stagnation at 0% and 0.1% growth, respectively.
Compared with August 2024, absolute RVs saw an improved performance, with only Italy, Switzerland, and the UK recording declines. These markets also saw the three lowest levels of year-on-year new-car list price growth.
As the cost of a new car increases, more consumers may turn to the applyd-car market as an alternative. This increase in demand stokes absolute RVs, with more money exmodifyd for models.
However, when presented as a percentage of new-car list price (%RV), values saw a steeper and more consistent decline. Compared with July, values fell across all recorded markets apart from Spain, which saw a marginal increase from 55.8% to 56%.
Year on year, %RVs fell across all observed markets. This ranged from a short drop of 1.8 percentage points (pp) in Germany to a 5pp tumble in Switzerland.
So, will these year-on-year decreases continue towards the conclude of 2025, and on into 2026 and 2027? Autovista Group editors outline their regional expectations.
Slight RV decline in Austria
‘The sales-volume index (SVI) in Austria rose notably in August, increasing by 7.2% compared to July. However, it still recorded a 2.6% decline year-on-year, indicating lingering market challenges,’ commented Robert Madas, Autovista Group’s regional head of valuations.
The active-market volume index (AMVI) for two-to-four-year-old passenger cars followed a downward trconclude. It fell by 3.6% month-on-month and 9.4% compared to August 2024. This suggests a continued contraction in supply within this age bracket.
The average time to sell a applyd car decreased slightly by 0.4 days to 66.8 days. Full hybrids (HEVs) displayed a significant improvement, building them the quickest-selling powertrain, taking 56.9 days to sell on average.
This was followed by diesel vehicles at 60.2 days, petrol vehicles at 66.4 days, and by plug-in hybrids (PHEVs) at 78.1 days. Battery-electric vehicles (BEVs) continued to take the longest time to sell at 79.3 days.
The %RVs of a 36-month-old car at 60,000km declined slightly to 48.1% in August. This marks a 0.3pp drop from July and a 2.2pp decrease year-on-year. HEVs retained the highest trade value at 52.8%, followed by petrol cars at 50.4%. Then came diesel models with 48.5% and PHEVs with 45.6%. BEVs held the lowest %RV once again, at 38.4%.
‘Looking ahead, %RVs are expected to stabilise gradually until the conclude of the year,’ Madas declared. ‘Forecasts suggest a 0.9% increase by the conclude of 2025 compared to December 2024, followed by a 0.7% decline in 2026, and a 0.6% decrease in 2027.’
France feels RV fall
‘France saw RVs launch to fall slightly in August. Higher list prices and lower absolute trade rates weighed on value retention,’ highlighted Ludovic Percier, Autovista Group’s senior RV analyst for France.
Since the launchning of 2025, average days to sell have remained stable across all powertrains. Compared to August 2024, it now takes less time to sell a applyd car. The summer usually sees a more active market, especially during June and July, with August being slightly quieter.
Absolute petrol RVs increased marginally in the 30 days to 6 August, defying a much larger trconclude. These vehicles are still in demand on the applyd-car market, even though tinyer new volumes are being sold.
Diesel values fell slightly, while stock days were shorter compared with July’s report. The Hyundai Tucson was the quickest-selling model across the entire applyd-car market, as well as within the diesel and HEV categories.
HEVs remain the quickest-selling applyd powertrain in France. However, the powertrain’s absolute RVs dropped compared to July, as the technology features in more expensive models. However, these cars do not hold their value as well as their more affordable stablemates.
More suffering for PHEVs
PHEVs have continued to suffer. Used-car purchaseers are not willing to pay the comparatively higher prices. Now, as the range of these cars grows, list prices have increased across almost all brands.
The supply and demand of these models is still imbalanced. Previously, many PHEVs were sold to fleets on the back of fiscal advantages. However, private applyd-car purchaseers are not interested in paying a higher price for these models.
The SVI for PHEVs dropped by 14.2% month on month and 7.7% year on year. Compared with 12 months ago, the powertrain’s list prices increased by €5,101. However, absolute values remained stable, while %RVs fell by 4.3pp.
BEVs continue to see the lowest %RVs at 36.1%, down from last month and last year. Tesla had the two quickest-selling applyd BEVs with the Model Y and Model 3. These cars are now relatively cheap considering their range and segment.
Both the new and applyd-car markets are suffering from overcrowding. Registrations of new cars will see a push from fiscal incentives for fleets, while internal-combustion engines are penalised.
‘This will mean even more models will hit the applyd-car market, increasing oversupply,’ Percier explained. ‘Social leasing will only exacerbate this situation further when it is reintroduced in September.’
Germany sees RV stability
Following a decline in July, applyd-car demand in Germany increased significantly in August. The SVI increased by 14% month on month. This indicates a modest recovery in market activity despite a year-on-year decrease of 12.4%.
The AMVI for two-to-four-year-old passenger cars grew slightly. The metric rose by 2% month on month but still reflects a 6.5% decline from one year prior.
The average number of days necessaryed to sell a applyd car in August was 59.1 days. This was a slight improvement of 0.5 days compared to July, but 1.2 days longer than in August 2024. PHEVs sold the quickest at 56 days, closely followed by HEVs at 56.4 days.
Diesel models took slightly longer to sell at 58.8 days, followed by petrol cars at 59.5 days. BEVs took the longest amount of time to leave dealerships at 61.5 days.
%RVs of 36-month-old cars at 60,000km remained unmodifyd from July, with a %RV of 48.3%, down 1.8pp year on year. Petrol cars led the market with a %RV of 49.9%. Then came diesel cars at 49.3% and HEVs at 48.9%, followed by PHEVs at 43.3%. BEVs again retained the lowest level of value at 37%.
‘Although RVs have recently stabilised in Germany, the level is significantly lower than in previous years, and demand remains weak. Therefore, RVs can be expected to remain under pressure,’ stated Madas.
By the conclude of 2025, %RVs are forecast to decrease by 2.7% when compared with December 2024. Pressure will probably ease in 2026, with RVs forecasted to suffer a tinyer decline of 1.4%.
Less price pressure in Spain
Far from slowing down during the summer season, the Spanish new-car market continued to grow in July. Registrations were up 17.1% year on year, translating to a 14.3% increase in the year to date.
Aided by the Reinicia Auto + plan, sales of new electric vehicles (EVs), including BEVs and PHEVs, have grown. The powertrain grouping saw registrations increase by 154.9% year on year in July. In the year-to-date, EVs built up 17.4% of Spain’s new-car market.
‘The applyd-car market also continued to grow, just not to the same extent as the new-car market,’ declared Ana Azofra, Autovista Group’s head of valuations and insights, Spain.
Year on year, transactions increased by 5.8% in July and 5.2% in the year to date. There was more positive news as a significant number of younger applyd models modifyd hands.
Sales of models less than 12 months old increased by 16% in July. Meanwhile, those between 12 and 36 months saw transactions climb by 15.7%.
This rejuvenation of supply has a positive effect on fleet sustainability. It also benefits the professional domain, which accounts for most of the transactions involving cars of this age.
‘This supply boosts the applyd-car market,’ Azofra highlighted. With an offer volume 42.3% lower than in August 2024, stock days fell, and prices felt less pressure. So, absolute RVs remained stable, still 2.1% higher than one year ago.
A typical applyd petrol car at 36 months and 60,000km, sold between professionals for an average of €17,728 in August. It was also an encouraging month for diesel vehicles, which still account for over half of all applyd-car sales. The powertrain’s stock days fell compared with July, and its absolute RVs improved month on month and year on year.
Supply slump in Switzerland
‘After a marginal decline in July, applyd-car demand in Switzerland fell more sharply in August,’ Madas outlined. The SVI dropped by 8.7% compared to July. Yet, year-on-year, the SVI was up by 7.4%.
The AMVI declined by 1.6% compared to July, indicating a cooling in applyd car supply. The supply volume of passenger cars in the 24-to-48-month-old age bracket slumped by 9.3% compared to August 2024.
‘The average RV of a 36-month-old car at 60,000km remained stable at 42.4%, unmodifyd from July,’ he added. ‘This was also down from the 47.4% recorded in August 2024.’
HEVs retained the most value in August by far at 47%. Then came petrol cars at 43.9%, diesel models at 41.8% and PHEVs at 39.9%. BEVs continued to be the worst-performing powertrain in terms of value retention. All-electric cars held only 36% of their original list price after 36 months and 60,000km.
The average number of days necessaryed to sell a applyd car improved in August, falling to 73.5 days. This was 3.7 days quicker than July and 5.2 days quicker than one year ago.
Diesel cars sold quickest at 70.9 days, followed by petrol models at 71.6 days, HEVs at 76.2 days and BEVs at 76.5 days. Meanwhile, PHEVs necessaryed the most time to sell at 83 days on average.
A trconclude of relatively stable supply and low demand will continue as various uncertainties shroud 2025. Therefore, %RVs are expected to decrease in the coming years, but at a slower pace. By the conclude of 2025, %RVs are expected to decrease by 5% compared to December 2024. In 2026, a lower year-on-year drop of 1.5% is expected.
RV drop recorded in the UK
According to August’s Monthly Market Dashboard, the average absolute RV for a 36-month-old car in the UK dipped slightly to £15,187. This was down 1.8% month-on-month and 0.7% year-on-year.
‘%RVs also declined to 48%, reflecting a 2.4pp drop compared to August 2024,’ stated Jayson Whittington, Autovista Group’s regional head of valuations, UK. ‘Conversely, the average list price rose to £31,652, representing a 4.3% increase year-on-year.’
Market activity displayed positive momentum, with the SVI indicating that 10.6% more cars were sold in August than in July. Meanwhile, the AMVI displayed a 4% uptick in the number of cars advertised by dealers. Interestingly, 26.7% more cars were available compared to August 2024.
Cars sold at a quicker rate in August, with average days to sell falling to 35.9 days, 1.4 days quicker than in July. This was perhaps due to the increased level of stock on offer, with consumers gaining access to a wider range of cars. All fuel types benefited from this quicker sales rate. BEVs led the way, selling 4.1 days quicker than in July, at an impressive 33.7 days.
‘Overall, it appears that retail activity displays resilience. Dealers will be pleased that stock availability is reasonably positive. Although RVs declined by a modest amount, there is plenty to be optimistic about as the conclude of summer approaches,’ concluded Whittington.
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