Second-hand market: Between the lines
Between good deals, attractiveness of prices, availability of spare
parts, quality-price ratio, the market of used cars has good days
ahead in a very particular situation marked by the crisis and the
prices of hydrocarbons.
If the Moroccan automotive sector is growing at a significant speed, with local
manufacturing units and constantly evolving productivity, with also vehicles
bearing the label Made in Morocco, the used car market follows the same
upward trend with new purchasing reflexes and increasingly sharp
regulations, putting quality cars on the market at the right prices. A trend
that has gained momentum with the Covid-19 pandemic, and has become
established over time for obvious reasons: low purchasing capacity for new
and a better offer for buyers. This gives shape to a real parallel sector that
has the wind in its sails today.
Structuring in motion
If specialists explain this enthusiasm of Moroccans for used cars by the war in
Ukraine and its consequences on transport, freight, the energy crisis and a
slowdown in terms of production and exports, it is nevertheless true that the
attractiveness of opportunity is part of Moroccan culture in such a way that
the word occasion is part of the national dialect and Moroccan mores, which
has become a generic term for a good deal. This is the case today when we
look at the second-hand car market which has structured itself differently by
abandoning a form of anarchy that was known to it. These were improvised
sales souks in some vacant lots of certain areas and regions of the country as
was the case in some neighborhoods of Casablanca with the market of Sidi
Bernoussi where Sbata, where the current affairs were liquidated, on the
spot, with a handshake and liquid in a plastic bag.
Today, it is brand new stores that open, storefront, with specializations since
a good fringe focuses on the luxury segment to recycle brands such as
Mercedes, BMW, Audi, Porsche, Mercedes, Maserati, Jaguar, Bentley… in
sedan, 4 4 and other cars. This is a juicy market, which explains the
appearance of many brands everywhere in major cities of Morocco, like
Casablanca which has the largest number, but also Rabat, Marrakech, Tangier
and Fez. This also reflects a state of mind of the Moroccan consumer
increasingly attracted by luxury cars. This also explains a commercial trend
that makes the premium component well advanced in Morocco, in line with
the global trend.
Uptrend
This ever-increasing trend leads Ali Benbrahim, a specialist in second-hand
luxury, to say: 'It is the same dynamic as for the new. Luxury cars change
hands very quickly. Often, it only takes a few months for owners to change
cars or brands. Fashion wants that some lovers want to try several models
and have fun. So, we inherit several almost new cars that we sell to other
fans with large significant discounts. It can range from 100,000 to 300,000
dirhams. Which is a good selling point for us. And that’s a good thing.
Sometimes we also do covers, always in the premium. We exchange a
Mazerati for a Bentley or a Cadillac for a Porsche with a good plus-value for
the brand and for our customers, some of whom are now partners for whom
we work to help them change cars going higher and higher in the most
select". We could easily think that this is a fashion phenomenon that will run
out of steam, but we are wrong. This second-hand luxury market is
expanding and attracting more and more Moroccans who have access to
models and brands at more affordable prices: 'I see that more and more
Moroccans are turning to the occasion for two reasons: firstly, increasingly
adapted prices for many models ranging from Dacia to Range Rover. Second,
there is supply, and demand meets that. The proof, look on two boulevards of
Casa 500 meters apart, you find four dealers for the occasion. And it works,"
says Nabil L'mseffer, manager of a garage on Roudani Avenue.
For this specialist, prices range from 70,000 to 1 million dirham, depending
on the make and model. The only requirement is “to have a vehicle in very
good condition, with reduced mileage and well maintained”.
Thriving market
This for the premium. As for the other segments of the second-hand market,
stores are flourishing everywhere, in all neighborhoods at attractive prices
with a year 2023 that confirms the trend since according to several sites that
offer good opportunities on the Net based on market research, almost half of
motorists would intend to change cars, by opting for an opportunity. A trend
that confirms the data of the National Agency for Road Safety (NARSA). It
shows that 677,222 vehicles changed ownership in 2022, compared to
571,123 in 2019. This represents an increase of 18%. Meanwhile, the
number of used cars imported fell by 15% (11,486 vehicles) over the same
period. This shows the good health of the local market of opportunity, with an
increasingly diversified offer, affecting all segments, with more competitive
prices adapted to the crisis and the law of supply and demand: 'The Moroccan
customer is no longer attracted to second-hand cars from abroad. He now
has access to almost all models and brands here in Morocco. It’s cheaper
because customs fees jump when you buy local and quality is guaranteed,”
explains
Mohamed Makhloufi, owner of a well-known garage in Tangier. He adds that
today, few customers are still risking to acquire cars imported or offered by
people who bought them in France or Spain to resell in Morocco. Simply order
its model and make locally and the seller will find you the vehicle of your
choice at the best conditions.
Attractiveness of segments and brands
In this segment of the opportunity for the use of all, the market obeys modes
and fluctuations certainly, but the standards remain almost unchanged. In
2023, the preferences are clear: First, sedans, which are followed by C-SUVs
and vans, B-SUVs and compact midsize. As for the brands that will be most
sought after this year by Moroccans, there are at the top of the list of brands
like Citroën, Ford and Volkswagen. They are followed by BMW, Dacia,
Hyundai Peugeot, which are closely followed by Honda, Renault and Toyota.
When we submit these trends to a specialist of the occasion, the answers all
flow in the same direction: these marks reflect the Moroccan spirit. On the
one hand, these are usual standards. On the other hand, the attractiveness of
the value for money is guaranteed. It is this set of brands that constitutes the
largest Moroccan car fleet. With this novelty that more and more Moroccans
want to buy 100/100 Moroccan: «the Dacia and the 308 are in high demand
today and pass from hand to hand more easily», specifies a seller of Hay
Hassani.
Wait and see
This dynamic is also part of a specific economic situation marked by wait-
and-see, but it adapts to market requirements and fluctuations, especially
since prices are the only barometer when it comes to buying a used car for a
price range between 50,000 and 200,000. And this, knowing that the new
prices for the most standard models vary from about 100,000 to 400,000
dirhams with an average vehicle price estimated at 300,000 dhs.
Adapted financing solutions
The whole is obviously facilitated by the large offer in terms of consumer
credit, which allowed many people to afford a vehicle especially for work
reasons. This also explains why the Dacia, Peugeot and Citroën have been
the most popular and sold for more than 10 years in Morocco. In this sense,
many young people turned to these brands for a small loan and launched a
small project, as is the case for utility vehicles transformed into mobile car
wash or mobile coffee. This also stems from a logical concern for buyers who
rely on basic and rational criteria for the purchase of their cars: first the
availability of spare parts, then the quality/ price ratio, reliability, safety,
performance, finally fuel consumption. This last point has become crucial at
least since 2021, with the increase in hydrocarbon prices, a direct
consequence of the energy crisis and the war in Ukraine that forced many
Moroccans to favor less greedy cars.
Price fluctuations of new and used
Unlike the new car market, which fell by 8% in 2022, the second-hand
market saw a 2% increase. 677,222 transfers were completed, compared to
662,031 in 2021. In detail, Narsa statistics show that the number of private
pre-owned vehicles reached 471,571 units, compared to 466,216 in 2021, an
increase of 1.13%. That of the utility reached 153 248 and motorcycles 52
403 vehicles. The passenger vehicle (VP) segment represents 71.23% market
share, the LGV 23.15% and motorcycles 7.91%. An improvement that
continues on its momentum despite some uptrend trends, short-lived, which
saw prices between the new and the good opportunity approach. This makes
several specialists say that faced with an increase in demand facing the
import crisis, many people have set their sights on the opportunity, sold at a
high price in an outbid dictated by the crisis. This increase fluctuated in the
best case between 5% and 15% for premium brands. And this, with all the
difficulties related to the search for petrol engines since the second-hand
market in Morocco has always been dominated by diesel which constitutes
90% of the concluded business.
The new dealers, too, found in the occasion a good vein to grow since brands
such as Auto Hall, Renault, Sopriam or BMW have set up a certified pre-
owned offer, that meets the expectations of an increasingly large clientele
that turns to the formal occasion market for more guarantees.
The particular-to-particular makes resistance
It should be noted that the informal market still operates through word-of-
mouth transactions. The intermediaries work with a constantly recycled
address book, as is the case of Ibrahim J. who has been working in this field
for ten years and still claims to be getting by: 'It is true that sales houses
also offer used cars, there are also garages that we see more and more, but
the sale from private to private still works. For ten years, business has been
better than before, especially in recent years, when people are making
arrangements between themselves, especially in working-class environments
where many of them wanted to sell their cars for personal reasons while
others took advantage of this situation to buy at the lowest price. During the
lockdown, I sold almost new Volkswagens at half price. It is a golden
opportunity, and opportunities like these still exist.” Indeed, the crisis helped,
several Moroccans had to separate from their vehicles, for several reasons.
First, forced unemployment for some. Second, oil prices for others. In both
cases, other Moroccans have found an opportunity to afford good used cars
at prices that defy competition. This means that the informal remains
anchored in the habits and practices of Moroccans, who often think in terms
of «Hmiza» and good vein.
TIPS TO FOLLOW
When you want to replace your car, the simple pleasure of «changing»
sometimes obscures some fundamental criteria of choice. And the euphoria of
departure may give way to disappointment after a few weeks of use. A car
that does not meet his needs, missing documents or expensive maintenance
can quickly come «spoil the party». Here are some tips to make a successful
second-hand purchase.
1 – Define your budget
The question of the budget must be addressed before the purchase of a used
vehicle to avoid any drift. A car consumes fuel (more or less depending on
the model), sometimes requires expensive maintenance, and must be
covered by insurance. All these criteria represent a budget that can be quite
substantial if one easily gives in to the temptation in front of the «car of his
dreams».
The reason must prevail and it is better to opt for a vehicle that will not ruin
its budget, especially if you are in a household and you already have children
(or to come), otherwise you will have to resell it quickly.
2 – How to choose your model?
Choosing the right model is choosing the one that corresponds to your needs,
your budget, your family expenses. Buying a used car on a «whim» is not
really the best solution, even if the temptation is sometimes strong. The
«small rollers» will have more interest to opt for a petrol model rather than
diesel because of a higher cost to purchase and maintenance.
A compact sedan might be a bit tight for a family with kids, while a large SUV
isn’t necessarily the best choice for a bachelor. In short, do not «crack» on
the first model, think, and define your budget without forgetting to integrate
the user costs. Choose reason to make the most of your purchase.
3 – Do I have to choose a private seller or a professional?
The question is relevant because there are advantages and disadvantages to
both. The professional reviews his cars before selling them and usually offers
a warranty. But the desire to achieve certain goals can sometimes encourage
him to offer a vehicle that does not necessarily meet your needs.
Most of the time, individuals offer vehicles at a lower rate, but there is no
guarantee and scams are not excluded. The state of maintenance must be
checked (maintenance book or invoices) imperatively. In terms of price, it is
generally possible to negotiate with an individual, especially for vehicles that
are difficult to resell.
4 – What questions should I ask the seller when buying a used car?
The more questions you ask, the more you will know about the owner and
the vehicle they offer. A seller avoiding certain topics may have something to
blame. So ask as many questions as possible about the origin, the
maintenance, the number of owners, the replacement of certain parts such as
the timing belt (significant budget), or the reason for the sale. A maximum of
information will motivate or not your purchase.
5 – What are the things to check?
Before buying a used car, it must be inspected externally and must be tested.
Outside
Visually inspect the body, check the condition of the paint (color differences),
the assemblies (crashed vehicle), the condition of the glazing and optics.
Remember to check the condition of the tyres and make sure they are
identical on each axle.
Behind the wheel
The overall condition of the cabin will give a first impression. Inspect the
condition of the upholstery (stains, tears), wheel and pedal wear (heavy wear
often indicates high mileage). Test the operation of comfort elements (car
radio, air conditioning, electric windows, etc.).
CHANGE OF OWNERSHIP OF A VEHICLE IN MOROCCO
Regardless of which option you choose to purchase your used vehicle, the
process of transferring ownership remains the same.
The service responsible for receiving your request is the Registration Centre
of the place of residence of the vehicle owner.
The time between the filing and the final receipt of the registration card
depends on the workload of the Registration Centre, but it is estimated at a
maximum of 2 months.
The supporting documents requested are:
• Form (grey card) depending on the mode of purchase (cash or credit),
containing the declaration of the owner of the vehicle;
• Registration fees (which depend on the tax power of the vehicle);
• Legalized signature of seller and buyer;
• Transfer Technical Visit Certificate;
• Registration in the name of the seller;
• Release of the funding organization if the registration card is crossed
out;
• The legal credit sales contract, if the vehicle is acquired on credit;
• The commercial register of the seller, if the latter is a professional.
What items should the seller give me when selling?
• Purchase order and sales contract, if professional;
• Copy of invoice, if professional;
• Receipt for technical visits, if vehicle > 5 years;
• Service book and invoices, if available;
• 2nd vehicle key;
• Thumbnail of the current fiscal year.
