Used Vehicles: How French Buying Habits Are Changing

The automobile financing company CGI Finance, in collaboration with C-Ways, has published a study on the changing habits of used vehicle purchases in France.

In a challenging economic context for the French, with inflation and declining purchasing power, CGI Finance sought to study the behaviors of 2,000 French people regarding rising used vehicle prices. This study, conducted in December 2022, highlights the different priorities of the French when facing such a significant purchase. It concerns both their acquisition process and financing options. 

The health crisis of 2020 had a ripple effect on the market, according to this study. With supply difficulties of materials for new vehicles due to successive lockdowns impacting manufacturers, the French turned to the used car market. This understandably affects the available supply and prices. 

Which elements are French people focusing on for a used vehicle?

Two categories of data influence French choices for a second-hand car: vehicle research and financing.

CGI Finance and C-Ways observed two different phases in the vehicle search process. First, they noted that respondents preferred to start their research online. Then, they liked to switch to professional assistance to be able to ask questions. That makes sense. Purchasing a personal or business vehicle is increasingly a luxury to some extent, due to soaring fuel, maintenance costs, and garage storage.

Additionally, used vehicle buyers have different priorities depending on where they purchase their car. If they buy from a professional, they mainly check the condition and safety of the car before considering the price. Conversely, when buying from a private seller, price is the primary concern.

And what about financing for second-hand vehicles?

The study by C-Ways and CGI Finance also revealed changes in vehicle financing solutions. In other words, where consumers used to pay cash for their cars in 2019, they now often opt for car leasing, such as the Lease with Option to Buy (LOA). Some of these contracts are short-term, which could theoretically lead drivers to change their cars every 3 to 4 years.

These shifts in used car purchasing habits may reflect a broader change in French consumer society, which appears less inclined to own a vehicle for as long as previous generations did. Or perhaps, with the introduction of the ban on thermal vehicle sales by 2035, people want to avoid losing money on resale. In any case, French habits regarding used cars are evolving. Only time will tell which direction these differences will lead us…

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