Study: Romania has one of the least transparent used car markets in Europe
Romania has one of the least transparent used car markets in Europe, according to the Automotive Market Transparency Index by vehicle history reporting company carVertical. The report analyzes second-hand car transactions across Europe, presenting the ranking of the most transparent markets.
Romania ranks 21st out of the 25 countries included in the study, placing it among the least transparent used car markets. Approximately 66% of the analyzed cars are imported from other countries, while over 59% of them have a history of damage, with an average damage value of EUR 3,879.
Like many countries with lower transparency in the car market, Romania is no exception, ranking 6th in terms of the average value of minor or major damages. Following Romania, the country with the highest percentage of damaged cars is Poland (65.79%), occupying the last place in the list.
On the other hand, Romania performs better in the age category of second-hand cars. The average age of used cars is slightly over 9 years (9.44 years), securing the 12th position out of 25 in the ranking of European car markets analyzed within the Automotive Transparency Index.
Among the total number of cars analyzed by carVertical in Romania, nearly 8% (7.8%) show signs of mileage fraud. The average odometer rollback has increased from 48,000 to approximately 85,000 km (85,186 km) compared to last year. Recent research by carVertical reveals that a car with manipulated mileage can be sold for up to 20% more than its actual value. Consequently, many Romanians may unknowingly pay a higher amount for a vehicle due to mileage fraud.
However, in contrast to other European countries, when analyzing the average financial damages, Romania falls below the average level. This can be attributed to the purchase of older cars. The age of cars with tampered mileage is closely linked to the potential financial impact on buyers. For instance, selling a 15-year-old car with manipulated mileage can artificially inflate the vehicle’s value by an average of 27%. For every 100,000 kilometers rolled back, buyers could end up spending about EUR 2,000 more on the car without knowing the actual details.
“When considering factors such as the average car price, transaction volume, the prevalence of odometer fraud in Romania, and the subsequent impact on car value, a clear picture emerges of the damages experienced by used car buyers in Romania. This amounts to nearly EUR 190 million in this particular market,” said Matas Buzelis, head of communication at carVertical.
After Romania, the countries with the least transparent used car markets among those analyzed include Estonia, Lithuania, Latvia, and Ukraine. Latvia has the highest percentage of cars with falsified mileage (12.92%), while Ukraine stands out with one of the highest shares of imported cars in Europe, at 82.4%.
In contrast, the most transparent countries at the top of the list include the UK, Germany, Switzerland, Denmark, and France. These countries have lower car import rates compared to others. For instance, the UK has a remarkably low import rate of 2.2%, which directly correlates with a lower incidence of fraud in the used car market.
The leading countries also exhibit low percentages of cars with falsified mileage: Switzerland at 2.4%, the UK at 2.7%, France at 3.3%, Germany at 3.4%, and Denmark at 4.1%, showcasing significantly better scores than other parts of Europe.
“Western markets and Scandinavian countries tend to be more transparent than Eastern European countries, primarily due to stricter legislation, lower imports of used cars, and higher GDP per capita. Countries with stronger economies typically feature newer car fleets with lower fraud risks, as fewer buyers are inclined to seek cheaper vehicles,” said Matas Buzelis.
(Photo source: Vlad Ispas | Dreamstime.com)
