Residual Values in Europe to Remain Under Pressure in 2026

Insight summary

• •Residual values of used cars in Europe are forecasted to decline slightly by the end of 2026, with Italy expected to see the most significant drops.
• •Battery-electric vehicles (BEVs) are experiencing faster sales, higher asking prices, and fewer price changes compared to diesel vehicles.
• •Europe's automotive sector faces challenges due to economic slowdown, inflation, geopolitical uncertainty, and technological transformation.
• •The Euro area growth is forecasted at 0.8% in 2026, with inflation rising from 2.0% in January 2026 to 3.3% in May 2026.
• •Used-car price pressure is more pronounced for six- to eight-year-old vehicles than for newer ones, partly due to affordability issues.
• •Demand for used vehicles varies by country and powertrain, with higher EV adoption in Nordic countries and the Netherlands, while Southern and Eastern Europe favor combustion engines.
• •Chinese car manufacturers are increasingly competitive in Europe, adding pressure to the local automotive market.