Used Vehicles Gain Momentum in Spain:

It’s time to shine a spotlight on the second-hand car market in Spain.  

The used vehicle (UV) sector in Europe continues to show signs of steady growth. On top of a consistent uptick since 2019, Spain’s UV market grew by 2.7% during the first quarter of this year. In fact, according to research revealed by GANVAM (the National Association of Motor Vehicle Sellers, Repair and Spare Parts) and Faconauto in February this year, for every new car purchased in Spain, two pre-owned ones were sold, meaning Spain is fast becoming one of the top European countries treading the path for this growing market.  

Felipe Ospina, Market Engagement Manager for Keyloop in Iberia attended the UV event hosted in Madrid by GANVAM.  

Felipe shared with us his vision and takeaways of where the automotive sector is headed in Spain and the role of emerging technologies like artificial intelligence (AI) in the dealership business.    

Seizing the opportunity: Second-hand cars and a vehicle-sharing economy 

In recent years, Spain has seen significant growth in renting and car-sharing modes of ownership, with a car-sharing market that’s projected to grow by 1.82% (between 2024-2028).  

With almost 4 million car-sharing trips made in Spain in 2023, and car-sharing users set to reach 2.3 million individuals by 2028, a great opportunity presents itself for dealers in the sale of new and second-hand vehicles from 1 to 10 years old. Likewise, there is an emerging B2B opportunity for dealers to drive profitability by partnering with, car-sharing, and renting companies, placing vehicles in the market through different modes of ownership and then selling or buying these at an optimal market price.  

For dealers to maximise profitability at this pivotal moment for UV sales, they must implement digital tools that optimise buying, selling, and inventory turnover, using systems that can indicate when to list, sell, or buy a specific vehicle according to market supply and demand. 

Scepticism towards EVs while trust for Chinese brands strengthens

While the Spanish market remains sceptical towards EVs due to performance concerns, limitations with charging infrastructure, charging time, vehicle distance range, and high insurance premiums, Chinese brands such as MG and Link&Co are gaining acceptance. These Chinese brands have proven to increase sales and gain traction on used vehicle platforms like Auto1 and Coches.net. Nonetheless, reticence remains in the EV market in general, as end consumers remain sensitive to price, and the dealership ecosystem is reflective of this in taking on Chinese brands. 

Read our recent blog for more details about working with new Chinese entrants. 

AI technology unlocks clear opportunities 

AI as a digital transformation tool is set to make waves in the UV business. Dealerships must distinguish between the automation of processes and leveraging the full potential of AI in their operations. Recognising the power of the latter could have a significant impact on the core operations of the business, and ultimately refine the customer experience.  

The emergence of AI solutions represents an exponential leap towards transforming an operational business into a strategic one, facilitating complex decision-making through the analysis of multiple variables and optimising results thanks to advanced forecasting capabilities. 

There is a clear, low-hanging fruit opportunity for dealerships in the UV market. But for them to be successful, and that means remaining competitive, they must embrace the tools to keep up with an industry that is evolving fast. Harnessing the potential available with AI, particularly when it comes to optimising decision-making and enhancing long-term strategy will be crucial now as market leaders strive to stay ahead of the curve.  

Keeping up with an evolving industry the Keyloop way 

With an active data core, Keyloop’s intuitive platform develops through the applications that are layered on top. That means users can access and mobilise their customer data more effectively, offering timely calls to action, advice, and recommendations. Whether customers are at a dealership, on the road, or researching from home, the centralised platform processes extensive information to enhance customer interactions and deliver a more personalised experience. 

For more information on how to harness technology to deliver the ultimate customer experience, download our whitepaper.