The car is one of the most precious goods of French households; it is even the second most precious after real estate. There are two types of markets in this sector: new and used vehicles. Both have been on the rise since the end of 2013.
In 2014, the automotive market recovered after a long period of decline, thanks to the good performance of the second-hand market. There are 5.4 million used cars sold for only 1.8 million new cars. There was also a 2.4% increase in second-hand vehicle sales compared to the previous year, compared with only 0.5% for new vehicle sales.
The average age of a used car sold in 2014 is about 8.5 years, but there is still an increase in the share of sales of young second-hand cars (under 5 years old). This share increased by 4.1 points compared to 2013 and now represents 30.1% of used car sales.
A study on the second-hand sector published by Cetelem in 2014 states that 65% of used car sales are made between private individuals.
The second-hand market is therefore growing faster than the new market. Now in France, it sells 3 used cars for a new one. In addition, this sector is driven by companies such as DEPOPASS, which helps and reassures individuals during their transactions.
DEPOPASS is a service that offers an alternative to bank cheques. It assists sellers and buyers in transactions, particularly those over 3000 euros, which cannot be settled in cash (in accordance with Article D 112-3 of the Monetary and Financial Code). The service secures the transaction.
The buyer transfers his funds, in the amount previously agreed with the seller, to a secure account held by DEPOPASS’ financial partner, S-Money, a 100% subsidiary of the French group Banque Populaire Caisse d’Epargne. The buyer, who retains control of his funds, then transmits a secure and inviolable code to the seller, for the release of the funds and transfer to the latter’s secure account.
In addition, the identity of both parties is checked by experts before the start of each transaction. Regular and reliable monitoring allows users to carry out a transaction with confidence and serenity.
We can note that in the first half of 2015, new car registrations are up, with an increase of 7%. We can therefore assume that the automotive sector is in good health and will continue to develop in the coming years.