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The Automotive Update: The future of used-car retail and new model announcements
What is shaping the future of used-vehicle retail? Could residual values (RVs) bounce back by the end of 2025? Which model announcements were made this week? Tom Geggus, Autovista24 editor, explores these topics in The Automotive Update podcast. This week, what impact will trade tension, increased battery-electric vehicle (BEV) volumes, and artificial intelligence (AI) have on used-car retail? Did RVs stabilise in June, and what role did new-car list prices and supply have? Plus, what major new model announcements made the headlines this week? Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Residual values impact retail Remarketing experts and industry insiders gathered in Frankfurt at the end of June for the Used Vehicle Retail Summit. As covered by Autovista24 journalist Tom Hooker, one of the biggest talking points at the event was RVs. EV Volumes director of content, Christian Schneider, outlined how values have fallen over the last two years. This followed a surge during the COVID-19 pandemic. Currently, supply and demand are gradually balancing. However, due to considerable economic pressure and struggling economies, the pressure on RVs is unlikely to let up in the immediate future. He went on to explore the additional RV impact of tariffs on the European used-car market. Schneider also talked about used BEVs, which are recording an increasing number of sales. However, the all-electric models are also seeing RVs fall at a steeper rate than the overall market. Can AI benefit retail? AI emerged as a key topic at the summit. McKinsey & Company partner Peter Cholewinski believes ‘a highly disruptive change is coming.’ This follows the release of an increasing number of large language models (LLMs). Agentic AI proved a key talking point. These models are designed to autonomously make decisions and act. However, very few companies can capture the value of this new technology due to its difficulty. McKinsey & Company project manager Dr Lisa Schrewentigges showed how an AI tool is helping an unnamed German dealer group. The product can tailor and personalise messages for customers and online leads. The tool was developed within six weeks and helped the dealer group record a 20% increase in conversion rates. Each sales representative also saw an additional 15 to 25 vehicle sales annually on average. Will RV declines continue? Despite a year-on-year %RV declines across seven European used-car markets, June’s Monthly Market Update revealed value stabilisation in some countries. Three key markets witnessed an uptick in RVs compared to May. However, four nations saw %RVs continue their decline. One factor which may have influenced this was a notable rise in new-car list prices. In June, six out of the seven markets saw list prices rise compared to 12 months ago. New model announcements The Polestar 7, a premium compact SUV, will be launched in 2028. Meanwhile, Geely launched its BEV SUV, the EX5, in Greece at an event in Athens. Ferrari revealed the new Amalfi, which replaces the Ferrari Roma. On 10 July, Mazda will unveil the third generation of the CX-5. Elsewhere, the next iteration of the Skoda Octavia will be launched at this year's IAA show in Munich, according to Car Magazine. Finally, Lancia will reprise the Delta HF Integrale next year, according to Autocar.
