Morocco’s Used Car Market Set to Surge as New Vehicle Sales Stall

Used market revenues are expected to rise from 6.5 billion dirhams in 2022 to 8.8 billion dirhams in 2023. "This indicates that demand in the used market is not expected to wane despite the difficult economic context. Consumption, despite the crisis, does not seem to show signs of weakness," says the daily Les Inspirations Eco.

In the automotive sector, the used car market is thriving at a time when the new market is facing a shortage of parts and components. Before the crisis, "it was mainly the middle class that felt the increase in the cost of living. Overall, demand will turn to the used market, where prices are more affordable," explains Tarik El Khaiter, technical legal expert for automobiles and head of the Amghar expertise firm.

The increase in the key rate and the tightening of credit conditions, as well as the rise in fuel prices at the pump, particularly for luxury cars, contribute to this preference of households for the used market.

In real estate, "the drop in prices observed in the second-hand real estate market in the first quarter of 2022 has contributed to somewhat reviving transactions in this segment," notes the same source, stressing that the rise in new prices will accelerate given the context marked by the surge in prices of raw materials and certain materials. As a result, transactions fell by 22.5%, in line with the 20.4% decline in residential sales.