More Cars: new market does not take off, Swiss prefer second-hand (cross-border guide)

Context

More Cars: new market does not take off, Swiss prefer second-hand

The Swiss market for new cars remains essentially unchanged. The increase in electric car registrations is not taking off. This trend is confirmed by data from the Federal Office of Customs (FOC), which has detected a stagnation in the new car market over the last few years.

According to the UFD, 162,111 new cars were registered in 2022, down 2.5% compared to the previous year. 📊 This trend is particularly evident in the gasoline car market, which suffered a 4.8% decline in 2022 compared to 2021.

In contrast, the used car market continues to grow steadily. According to a report by consulting firm PwC, 221,000 used cars were sold in Switzerland in 2022, an increase of 10.5% over the previous year. This trend is particularly evident in the cantons of Zurich and Geneva, where the used car market is very competitive.

One of the main reasons for the stagnation of the new car market is the energy crisis that has hit the world in recent years. Many Swiss prefer to buy used cars, which are often cheaper to buy and maintain than new cars. In addition, used cars often already have a small number of users, which means that owners no longer have to worry about paying registration fees and

Operational details

The share of rechargeable cars in the circulating car fleet in Switzerland is still a single-digit percentage. According to data from the Swiss Association for the Automotive Industry (ASIA), in 2022, about 10% of cars on the road in Switzerland were rechargeable, while 70% were petrol and 20% diesel.

However, despite the growth in demand for electric cars, the new market is not taking off in Switzerland. According to a recent report by the Swiss Bank, in 2022, only 3.5% of new car sales in Switzerland were electric. In addition, according to data from the Federal Office of Roads (UFS), in 2022, only 12% of new registrations in Switzerland were electric cars.

In contrast to this trend, the data show that the Swiss prefer the purchase of used cars. According to data from the Federal Office of Roads (UFS), in 2022, 70% of new registrations in Switzerland were used cars. Moreover, according to a recent report by the consulting firm PwC, in 2022, 60% of Swiss who bought a used car did so for economic reasons.

The preference for used cars is particularly evident in some Swiss cantons. According to data from the Federal Office of Roads (UFS), in 2022, the canton of Zurich had the highest percentage of new registrations of used cars (74%), followed by the canton of Bern (71%) and the canton of Lausanne (69%).

Swiss law

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Key points

Price plays a key role in the Swiss car market, where new electric cars lose value much faster than combustion equivalents. This phenomenon is particularly evident in the new car market, where Swiss buyers seem to prefer used cars.

According to data from the Swiss Association of Automobile Manufacturers (ASAC), the price of a new electric car can drop by up to 50% over the years, while a combustion car can only lose 20% of its value. This means that a buyer who buys a new electric car may have to pay up to CHF 50,000 less for a used car with the same level of equipment.

In Geneva, for example, the average price of a new electric car is about 80,000 francs, while that of a used car with the same level of equipment is about 40,000 francs. This means that a buyer could save up to CHF 40,000 by buying a used car instead of a new one.

The legislation in force in Switzerland provides that new electric cars are exempt from the payment of the right of circulation, but only for the first five years of ownership. After that, the owner will have to pay an annual circulation fee of about CHF 400. In addition, new electric cars are subject to a 5% import tax, while used cars are exempt from this tax.

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Source: swissinfo.ch