European emission regulations: effects on the second-hand market

European legislation on emissions is redefining the automotive market, and its impact is not limited to new vehicles. The used car market, which represents more than double the sales of new cars in Spain, is also affected by the environmental requirements being implemented across Europe. For dealers, understanding these regulations is essential to anticipate changes in demand, the residual value of their stock, and the turnover of certain engine types.

1. From EURO 6 to EURO 7: the new frontier

Since September 2015, all new cars must comply with the EURO 6 regulation, which sets maximum limits for NOx and particulate emissions. The European Commission has approved the upcoming EURO 7 regulation, set to come into force in 2027, which tightens the permitted values and introduces more demanding testing.

This implies that vehicles regulated before EURO 6 (EURO 5 or lower) will see an accelerated depreciation, especially in urban areas. For dealers, maintaining in stock units with those homologations poses an increasing risk of commercial obsolescence.

2. Environmental labels: the customer's filter

In Spain, the DGT label (B, C, ECO, ZERO) is the main reference for buyers and municipal authorities. From 2025, with the widespread implementation of Low Emission Zones (LEZ), cars without a label or with a B label will face increasingly severe circulation limitations in more than 150 municipalities.

Dealers must prioritize acquiring units with the C, ECO or ZERO labels to ensure turnover, especially if they operate in urban areas. Additionally, it is advisable to clearly inform the customer about the type of label, its legal implications, and the restrictions that will affect them.

3. Decline in the residual value of older diesel vehicles

The combination of EURO regulations, environmental labels, and social perception is causing an accelerated decline in the residual value of older diesels (pre-EURO 6). While they still have a market in rural or professional settings, their demand decreases in large cities.

Dealers that maintain stock of such units will need to adjust their prices more quickly to avoid losses due to depreciation. In contrast, recent diesels (EURO 6d TEMP or 6d) remain competitive if they have a C label.

4. Increase in demand for "clean" used vehicles

As restrictions become more stringent, buyers are leaning towards more efficient used vehicles, with lower consumption, emissions, and better environmental technology. This benefits:

• Electric and plug-in hybrid vehicles (ZERO)

• Non-plug-in hybrids (ECO)

• Gas vehicles (ECO)

• Recent gasoline and diesel vehicles (C label)

Professionals who select stock under these criteria not only ensure better turnover but also foster greater loyalty from informed customers who are concerned about future regulations.

5. Importation and European regulation: cross opportunities

Many dealers are turning to importing used cars from Germany, France, or Belgium. In these countries, environmental restrictions are also prompting an early exit of units with older regulations, which may have demand in certain areas of Spain.

It is crucial to know:

• The level of emissions of the imported vehicle.

• Its equivalent in DGT label.

• The homologation and documentation requirements.

Importing can be profitable if done with rigorous selection and prior analysis of the local market.

Conclusion

European regulations on emissions are exerting increasing pressure on the used car market, but they also open new opportunities for those who know how to adapt. For the dealer, the future lies in:

• Knowing current and future regulations.

• Selecting stock aligned with environmental labels.

• Clearly informing the customer about restrictions and benefits.

• Preparing for an accelerated renewal of the vehicle fleet.

Dealcar can help you analyze the environmental impact of your stock, adjust your acquisition strategy, and communicate the environmental advantages of each vehicle clearly. Staying up to date with regulations is not just an obligation, it's a commercial advantage.

FAQ / Frequently Asked Questions

What is the EURO 7 regulation and when will it come into force?

It is the upcoming European regulation on emissions for new cars. It is expected to come into force in 2027 and will be stricter than the current EURO 6.

How does the DGT label affect the sale of used cars?

It defines the circulation restrictions and affects the perceived value by the buyer, especially in cities with LEZ.

Should I avoid having old diesels in my stock?

It depends on your market. In large cities, yes. In rural or work areas, they may still have marketability if the price is adjusted well.

Do imported cars have a DGT label?

Yes, as long as they are properly homologated in Spain and their emission levels are certified.

How does Dealcar help me with the ecological transition?

With tools to analyze your stock, publish clear environmental information, and direct your offer towards future demand.