Used Cars Substantially More Expensive in Hungary

The need for own cars and independent mobility is becoming more and more important in Hungary, and this is reflected not only in the growing interest in new cars, but also - and especially - in used cars. Growing demand and the rising cost of replacing cars on the market have also led to a significant increase in domestic used car prices, according to a market analysis by the used cars website Használtautó.hu.

The first half of this year has seen a recovery in the car market, with new vehicles showing an increase compared to last year, while the market for used cars, the most popular choice for Hungarian private buyers, is already showing positive differences compared to the pre-pandemic figures for 2019.

The growing demand for cars is demonstrated by the fact that the number of searches on the market leader Használtautó.hu, which has been on the market for around 20 years, increased by 45% in the first half of this year compared to the same period last year, and it was also confirmed by the increase in the number of changes of ownership, which rose by 5.7% in the first half of the year. Shoppers are also returning to the new car market, but there is still a 13% lag compared to the first half of 2019, with only domestic changes of ownership returning to pre-coronavirus era numbers, up 1.4%.

While the majority of car dealers can hardly complain, the increasing demand for cars is not a welcome development for everyone. As in the construction industry, the price rise in the car market is a side-effect, or perhaps an after-effect, of the coronavirus epidemic. The price increase and longer delivery time of new cars – which may be due to the lack of chips – the [worsening – ed.] exchange rate of the Hungarian currency and the consequently more expensive imports as well as the increasing demand have also caused an increase in the price of used cars, according to Mátyás Katona, an expert at Használtautó.hu.

At the beginning of this year, prices rose by 25%, then by 32% in the first quarter compared to the same period last year, and by the end of the second quarter, the average price of HUF 3.8 million was 49.9% higher than last year, according to the ads on Használtautó.hu. Of course, not all used car prices have risen to this extent, and the average price is also driven up by the higher prices of brand new cars, even saloon cars, which have been available in the Használtautó.hu system for years. And the increased interest in the cheapest category means that many vehicles are not even listed on the advertising site, because in many cases they have already found a buyer in the circle of friends.