UK has the most transparent used car market in Europe, research reveals

When it comes to the used car market, every European country has similar problems. Be it mileage fraud, hidden damages, or even an old vehicle fleet increasing buyers’ chances of getting a bad quality machine – transparency on the second-hand market is often lacking. The situation in different parts of Europe varies, which can be explained by the economic situation and regional peculiarities.

The vehicle history reporting platform carVertical conducted research to determine countries where buying a used car is the riskiest.

This research relies on data from actual car reports bought by our customers over a period of 12 months. This has created a comprehensive picture of the used vehicle market in Europe, allowing experts to compare the situation in different countries.

“Having processed so many car history checks allows us to find patterns in different markets and track their evolution,” explains Matas Buzelis, the Head of Communications at carVertical.

Brits may not be well-informed about car-related scams

While the UK is the most transparent country on carVertical’s Market Transparency Index, fraud still exists. Since drivers in Eastern Europe are more aware of various scams, they’re much more cautious. The British face less fraud, therefore not every driver may know that somebody can alter a car’s odometer or replace damaged parts with cheap counterfeit and then sell a vehicle as new.

1 out of 7 cars in the UK have a clocked mileage, which is not terrible, but still considerable. The average rollback value is 29,555 km. This way, a buyer may overpay for a vehicle and, based on the false readings, have trouble planning its maintenance.

The average age of used cars checked by carVertical in the UK is 9.8 years, placing the country closer to Eastern and Central Europe, than to Western Europe.

The full Market Transparency Index report can be found here.

Western countries are more transparent

According to carVertical’s research, the used vehicle market in Western Europe is more transparent than in Eastern Europe. It also shouldn’t come as a surprise that most vehicles in the East are imported from countries like Germany, France, or Italy.

The UK is the most transparent country out of the 23 ranked on the Market Transparency Index. However, this doesn’t mean the British used vehicle market is free from problems. Out of all the cars checked by carVertical in the UK, 14.5% had a clocked mileage and 21% had been damaged at some point, suggesting buyers shouldn’t trust sellers blindly. However, the UK has the lowest percentage of imported cars – 10.7%.

Germany is ranked 2nd with 12.6% clocked and 21.3% damaged vehicles. While Germany is the biggest car manufacturer in Europe, 26.8% of used vehicles in the country are imported from abroad.

Italy has the lowest percentage of damaged cars on the Index – 16.6%. The percentage of clocked cars is also relatively low – 11%, and only 32.1% of the vehicles in the country are imported.

“All these countries are crucial players in the automotive industry. Germany, Italy, and France manufacture many vehicles and also feed the rest of the region with used cars through export,” says M. Buzelis.

Fines for mileage fraud in France are up to 10 times higher than in some Eastern countries, which results in a low number of clocked cars – 9.6%. However, 28.5% of cars on the country’s

roads are damaged, which is significant. The country imports 54% of its used vehicles, which is the highest number among the top ranked countries.

Transparency in Central Europe is average

Central European countries like Croatia, Czechia, Hungary, and Slovakia are ranked in the middle of carVertical’s Market Transparency Index. These countries have high import penetration, along with a high number of damaged vehicles.

Half of the used cars in Czechia are imported from abroad. 51.6% of cars are damaged and 11.4% are clocked.

Neighbouring Slovakia has even more imported cars – 58.5%. 57.7% of vehicles are damaged, and 1 out of 9 has clocked mileage.

The situation in the used car market is also similar in Hungary, with 52.6% of imported cars, 55% – damaged, and 12.7% – with clocked odometers. While the percentage of clocked vehicles is one of the lowest in Croatia (10.3%), it has a significant number of imported cars (69.3%) and 56.4% of vehicles damaged.

Eastern Europe has the most market transparency issues

Buying a used car in Latvia, Lithuania, Ukraine, or Romania is a risky business, as many vehicles have hidden damages, clocked mileage readings, and more. Scams are common and many buyers have fallen prey to them.The shadiest car market is in Latvia, where 23.6% of all vehicles checked on carVertical have a clocked mileage. The situation in other Eastern European countries is similar: Romania has 19.6% of clocked cars, Ukraine – 15.6%, and Lithuania – 18.1%.

Ukraine is the champion of car imports – over 80% of the vehicles in the country arrive from abroad. Latvia (75.5%), Romania (67.2%), and Lithuania (75.3%) are not very far behind.

Many countries from Western Europe arrive damaged, then they’re fixed, and sold as new. That’s why the percentage of damaged cars in Eastern Europe is very high. In Lithuania, 59% of vehicles are damaged, Latvia – 57.5%, Romania – 57%, and Ukraine – 46.7%.

“A considerably higher share of used car imports is one of the key reasons Eastern countries are much more affected by fraud. Imports directly boost car clocking rates – tracking such crimes requires a lot of effort, particularly when it comes to cross-border transactions,” explain M. Buzelis.