Online sales of used cars in Portugal dropped 7.6 percent in July, compared to the same period in 2021, with stock levels falling for 17 consecutive months, shrinking 19.4 percent compared to the same month last year.

The average price of used cars in Portugal for sale online had already risen by 10.9 percent until July, according to a report by the Indicata Observatory, belonging to the Autorola group. This trend also continued in early August, with a 1.4 percent rise in the price index compared to the previous month.

Driving the price of used cars on the Portuguese market are low stock levels combined with strong demand. Semiconductor shortages continue to cause long lead times for new vehicles, driving more consumers to the used market.

The report found that online used stock levels in Portugal have been falling for 17 consecutive months. At the beginning of August, this indicator was 9.9 percent lower than at the beginning of the previous month, but compared to August 2021, the levels are already 19.4 percent lower.

Due to these factors, “manufacturers are unable to support sales with tactical records”, the report reads. As a result, sales of very recent used vehicles in July — that is, less than one year old — were 50 percent lower than in July 2021.

As the second half of the year progresses, the Indicata Observatory notes that “there are likely to continue to be restrictions in the supply of newer and used vehicles from rental fleets”. The reason for this is related to the need for companies to keep their fleets despite them aging, in order to satisfy their commercial needs.