Moroccan Used Car Sales Soar, Outpacing New Vehicle Market

"The sector is starting to take the path towards greater organization. Indeed, an organized circuit is developing slowly but surely. The latter, still limited, currently represents only 2% of the total market transactions, with about 14,000 transfers per year," writes the magazine Finances News Hebdo.

Many garages, automotive distributors and dealers are increasingly investing in the sale of used vehicles. The strong interest in this segment is justified by its economic advantages. "The main advantage of the used vehicle (UV) is its cost, much lower than that of a new vehicle. In addition, the vehicles are available immediately, and the transaction can be completed in just a few hours, unlike the purchase of a new one which can take days, or even months in case of stock shortages... In the UV, it is possible to find models, finishes or colors that are not available at local dealerships," explains Adil Berrada, a garage owner based in Casablanca, quoted by the magazine.

The market remains, however, confronted with the predominance of the informal sector, which casts doubts on the authenticity of the data and documents, as well as on the reliability of the vehicle’s technical condition. This situation leads many customers to use the services of operators offering 3 to 12 month warranties on the vehicles sold.

The Narsa is working to reorganize the used vehicle market. Among other actions, it has set up an online platform dedicated to vehicle transfers, which allows to verify the possible existence of seizures or objections. "The Narsa also collaborates with credit institutions in order to fight against fraud, particularly with regard to the falsification of release documents for vehicles purchased on credit," it is read. The agency also plans to create an interface system with other institutions such as the Professional Association of Financing Companies (APSF), customs, police and gendarmerie, in order to exchange information for more transparency and security in transactions.