The second-hand car lots, which were almost empty in 2022, are fuller in 2023 (Photo: Nir Ben Tovim, public relations)
During the entire Corona period, and even afterwards, the used market broke the rules.
Many models were sold above their list prices, and the dozens of sought-after ones even added value, instead of losing, as the second-hand car market is supposed to run.
The shortage of new cars due to the chip crisis, accelerated by the effects of the war in Ukraine, has brought the demand for used cars to new highs.
But Levi Yitzhak's price list data for 2001 models, meaning two-year-old cars, reveal that the celebration is over.
The April price list reflects a market that has almost entirely returned to price decreases, although as always there are some that have decreased less, and there are still models that have increased in value in the last 12 months.
These are mainly electric models: the value of the Fiat 500e increased last year by 4%, of the Hyundai Ioniq Prestige by 3%, but the Peugeot 3008 also registered an increase of 1%.
Skoda Octavia 1.5 Style has not lost value at all and the price has not changed, who said that French cars do not retain value.
The Hyundai i10 didn't lose its battle either.
However, the record belongs to the Kia Sportage LX, whose price increased by 6%.
The test shows that streetcars continue to lose value on average at a slower rate than gasoline vehicles, although at a higher rate than before.
Even the Tesla Model 3, which in the last two years has enjoyed price increases as a used product due to the increase in its new price, has lost quite a bit of value in the last year: the base model lost 7% and the more expensive Long Reiji model lost 4%.
Lowering the prices of new cars did not help preserve the value of the Tesla Standard Model, which lost 7% (Photo: Walla! system, Udi Etzion)
Mi-Ron Levy, Vice President of Levy Yitzhak (Photo: Levy Yitzhak Group)
"There is no doubt that there is a slowdown in the market, and the April price list expresses it," says Mi-Ron Levy, VP of Levy Yitzhak Price List. "Cars priced over NIS 200,000 have slowed down a lot, to the point of stopping.
This is a result of the increase in interest rates that turned into taking financing to purchase an expensive car, and the economic and political situation affects the mood of the buyers.
People prefer to keep the money in their pocket.
In April, we reduced the value of most luxury models by 3%, and the popular models by two percent.
The market is starting to return to the rate of decline we knew before the corona virus."
There are also people who purchased cars with 100% financing and their repayments jumped. What are they doing?
"You see car owners who had an expensive loan sell the car to close it, or to downsize, and switch to cheap and popular vehicles More".
Does the luxury stop apply to all brands?
"The prestigious and expensive sports cars behave differently. Ferrari models, Porsche 911. There the customers don't care what the market is like, they come to fulfill a dream. I was at a luxury car dealer last week, he had a Ferrari worth NIS 1.5 million and three customers struggled to buy it, almost There were beatings."
But even among the popular models there are those who keep their car.
"Skoda models are still stars, especially the Octavia, Superb and Kodiak. Models for which at the peak they would have paid NIS 10,000 above the list price are now sold at list price, but not below. Only the gasoline models, not the diesel."
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In 2022, the Picanto was also the best-selling car in Israel as a new car, and also increased by 6% as a used car (Photo: Keinan Cohen)
And there is also a surprise.
Levy: "French cars that suffered from continuous price drops, the market accepts their new models differently. Citroen, Peugeot and Renault models. C3, C4 and C5, Peugeot 2008 and 3008, which really became a hit in the used market."
Last year there was a high demand for second-hand trams due to the lack of new ones.
This year the stock shortage was resolved.
"There is demand, but not for all of them. At Geely, because there is inventory, the trade in the rights to a new car ends, which we saw last year when people would sell above the list price the right to receive a car immediately because of an order they made months before, thus bypassing the queue that sometimes lasted for months. BYD didn't have a queue from the beginning because there was a large inventory. Many MGs are now entering the market when their owners upgrade to newer trams and there are those who will buy their cars. The Audi Q4 also maintains good demand, the importer only started deliveries in the last few months, but there was a parallel import before that." .
Tal Bar Lev, CEO of Shlomo Car Sales (Photo: Ezra Levy)
A similar picture is described in the institutional market as well.
Tal Bar Lev, VP of Shlomo Sixt and head of the vehicle sales division, says that "the advantage in the market situation is that we entered 2023 with a low inventory.
I have 2,500 parking spaces and entered the year with 1,000 full.
Since then, the inventory has increased, because new vehicle shipments have arrived, and many companies that were waiting for them have begun to refresh their fleets.
But the market is not in good shape.
The interest rate jumped from 6-7 percent per year in practice, to 10-12 percent.
People sit on the fence and buy only when they have to, not because they feel like it.
Because a boy got a license, a daughter started studying at the university.
So come to us and buy.
I believe that after Passover the political situation will become clearer and people will return to the desire to change cars."
Why were the luxury models affected more than others?
"Because not only did interest rates rise, the financing companies became more picky.
A customer who would have received financing of NIS 200,000 a year ago, and added a little more from the house and the sale of the old car, will now receive only NIS 100-150,000 from the same company.
They don't want to take risks."
Who is now selling the fastest in the lots?
"Lots of people are looking for hybrids, such as the Corolla, Ionique and Niro, their waiting time in lots is shorter than ever. But there is also a reality. The two-year-old Mazda 3 gasoline will sell faster than the Ionique because it is given a bigger discount. The previous generation Elantra became a hit, although a gasoline vehicle, But large, equipped and relatively cheap. And there are the regular hits: Hyundai Tucson, Kia Sportage, and the small crossovers of the Koreans, Hyundai and New and Kia Stonic."
How many popular models have lost (or gained) in the past year
Trams and Plug in
Aways U5 |
Decreased by 5%
MG EHS |
MG ZS EV |
Geely Geotri 460 |
Tesla Model 3 Standard |
Teslan Model 3 Long Range |
Hyundai buys |
Hyundai Ioniq Prestige |
Fiat 500e |
increased by 4%
went down by 2%
Honda Jazz |
Hyundai i10 |
Mazda 2 |
Kia Picanto LX |
went up by 6%
Toyota Yaris Cross Urban |
Hyundai Tucson 1.6 Turbo |
Mazda CX30 |
Mitsubishi Outland |
Nissan Juke |
Subaru XV |
Suzuki Crossover Hybrid |
Seat Arona |
Peugeot 3008 Active |
Skoda Kodiaq 1.5 Style |
Kia Sportage Diesel |
Kia Sportage Urban |
Chevrolet Trailblazer |
Skoda Octavia 1.5 |
Volkswagen Golf 1.5 |
Data: Levi Yitzhak price list