ZDK Forecast 2025: Why used cars are gaining in importance - and how dealers can benefit from this

Will 2025 be a key year for the upheaval in the automotive market? While new car sales will fall by 4.6% this year according to the ZDK forecast, the used car market is seen as a growth driver with an increase of 3.1%. The main reasons for this development are rising new car prices, economic uncertainties and a general reluctance to make major investments, particularly in the area of electromobility.

For car dealerships, this means both challenges and opportunities. On the one hand, competitive pressure is increasing in the used car segment, while on the other, greater market movement is opening up new opportunities to increase sales - especially for dealers who rely on digital solutions.

MARKET DEVELOPMENT: FIGURES AND TRENDS FOR 2025

The ZDK expects 2.7 million new registrations in 2025 - a significant decline compared to the 2.83 million in 2024. At the same time, the number of used car registrations is expected to rise to 6.8 million, underpinning the continuing trend towards price-conscious mobility solutions.

JANUARY 2025 AS AN INDICATOR FOR THE YEAR AS A WHOLE

The first figures of the year confirm the forecast: in January 2025, 563,539 cars changed hands, an increase of 6.9% compared to January 2024. This indicates that the demand for used cars will not only remain high, but will even gain further momentum. At the same time, the new car market recorded a year-on-year decline of 2.8%, further demonstrating the increasing reluctance to buy.

REASONS FOR THE DEVELOPMENT

Economical uncertainties

The general economic situation is having a significant impact on consumer buying behaviour. Inflation and high interest rates are causing many potential buyers to postpone major purchases or look for cheaper alternatives. In the automotive sector in particular, consumers are weighing up their purchasing decisions more carefully, as the monthly financing instalments for new cars have risen noticeably due to higher interest rates on loans. In addition, uncertainty about future economic developments is leading to a wait-and-see attitude - those who do not necessarily need a new vehicle are postponing the purchase indefinitely.

Higher prices for new cars

The production costs for new cars are rising continuously. Raw material prices, increased labour costs and the ongoing challenges in global supply chains are driving up vehicle prices. At the same time, government subsidies, particularly for electric cars, have been reduced or cancelled in many countries. These factors are making new vehicles financially unattractive for many consumers. The result: instead of an expensive new car, more and more buyers are opting for a used car that is in good condition and offers better value for money.

Reluctance to buy electric cars

Despite political pressure to promote electromobility, demand for new electric vehicles remains below expectations. Many consumers are unsure whether the charging infrastructure can keep pace with the growth of e-mobility, especially in rural areas. In addition, residual values for electric cars are difficult to estimate, as technological progress is advancing rapidly and batteries are losing value faster than conventional combustion engines. As a result, many buyers prefer to opt for a used electric vehicle with proven technology or continue to opt for a classic combustion engine model.

Growing savings mentality

The economic uncertainties of recent years have led many households to scrutinise their spending more closely. Larger investments in particular are being scrutinised more critically and the willingness to spend large sums on a new car has decreased. Instead, consumers are looking for inexpensive alternatives that still offer them reliable mobility. As a result, used cars are moving even more into focus, as they offer considerable savings potential compared to new cars and are often already available with extensive equipment. Dealers must take this development into account and respond with attractive financing and leasing offers.

Challenges for retailers: Price pressure and competition

Despite rising demand, the used car market is not a sure-fire success for dealers. There are several challenges:

1. Price Pressure due to rising residual values

As many customers are forced to switch to used cars, residual values are rising. For dealers, this means that a more precise calculation is necessary in order to achieve competitive yet profitable prices. Miscalculations can lead to either low margins or long standing times, which ultimately ties up capital.

2. Differentiated pricing as a success factor

In order to achieve the best possible price, retailers must align their pricing strategy precisely with the target group and the market. In addition to seasonal price fluctuations, regional differences also play a role, as does the range offered by competing retailers. Digital pricing systems help to adjust prices on a daily basis in order to make the most of market trends.

3. Competition from online marketplaces

Customers compare prices online in real time and expect transparent, dynamic pricing. Dealers must respond to this by optimising their own digital offerings. In addition to competitive prices, additional services are also crucial: flexible financing options, digital vehicle evaluations and fast online reservations can offer a decisive advantage. In addition, dealers can use a skilful online strategy to target customers and thus also increase stationary sales.

Opportunities through digital price labelling

To meet these challenges, more and more car dealerships are turning away from analogue price labelling and opting for digital price labelling instead. The advantages are obvious:

1. Automated price updates: retailers can react flexibly to market changes without having to make manual adjustments.

2. Greater transparency: standardised prices on site and online increase customer confidence.

3. Optimisation of margins: dynamic pricing strategies make it possible to set the best prices based on demand and competition.

4. Increased efficiency: less work for price changes means more focus on customer service and sales.

How our Digital Auto Display (D.A.D) supports dealers

A particularly effective tool for the digital pricing strategy is the Digital Auto Display (D.A.D) from VISI ONE. This system offers numerous advantages:

1. Automatic price updates in real time: retailers can adapt their pricing strategy with agility.

2. Synchronisation with online offers: Standardised prices on all sales channels ensure maximum transparency.

3. easy handling: no more time-consuming manual maintenance of price tags.

Conclusion: Why 2025 will be the year of the digital pricing strategy

Current developments in the car market make this clear: The used car market is a growth segment that offers enormous potential for dealers. However, only those who organise their pricing strategy flexibly and dynamically will benefit.

With a digital price labelling solution such as the Digital Auto Display (D.A.D), dealers can strengthen their competitiveness, optimise margins and react efficiently to market changes. Those who switch now will secure decisive advantages in an increasingly dynamic market.