- Demand for used luxury cars increased on OLX Autos as new cars became more expensive in 2022.
- Used BMW witnessed the highest demand on the used car platform, followed by Mercedes Benz and Audi.
- However, even pre-owned luxury cars have seen their prices rise as sellers now try to capitalize on pent-up demand.
Customers show a growing preference for used luxury cars from BMW, as rising input costs and inflationary pressures make buying a new car an expensive affair. A report from OLX Autos noted that demand for pre-owned luxury cars increased sharply in the first half of 2022, with BMW being the top favourite.
It was followed by Mercedes Benz, Audi, Jaguar and Porsche in that order.
OLX Autos said in its report that luxury car offerings in Tier 1 cities recorded 40% annual growth on its used car platform. Tier II cities grew by 45% in the same period. The company came to the conclusion after analyzing more than 50,000 luxury car advertisements placed on the platform from January to June.
“With discretionary spending back to pre-covid levels and an increase in disposable income, we are seeing a noticeable shift in consumers’ ambitions to upgrade to luxury car brands. The used luxury car market has particularly benefited from this sentiment, as well as from long wait times and the rise in new vehicle prices,” said Amit Kumar, CEO of OLX Group India, in a statement.
OLX is not alone in benefiting from this trend. Competitor Spinny had also witnessed high demand for the Mercedes C-Class, BMW 3 Series and Audi Q3 on its newly launched luxury car portal in the second quarter of 2022.
But just like brand new cars, used luxury cars also saw their prices rise from a year earlier.
The average sales price of Mercedes Benz shot up by 25%, followed by Porsche which rose by 13%. Prices for BMW were up 11% from a year ago, while Audi and Jaguar were up 6% and 2.6% respectively.
In contrast, in Tier 2 cities, the price of Jaguar and Porsche fell by 8% and 18% respectively.
|Brand||Average offer price in Tier 1 in 2021||Average offer price in Tier 1 in 2022||Average offer price in Tier 2 in 2021||Average offer price in Tier 2 in 2022|
|Audi||₹18.6 Lakh||₹19.7 Lakh||₹17.8 Lakh||₹20.1 Lakh|
|BMW||₹20.8 Lakh||₹23 Lakh||₹18.9 Lakh||₹21.9 Lakh|
|Mercedes-Benz||₹22.6 Lakh||₹28.2 Lakh||₹21.4 Lakh||₹25.6 Lakh|
|Jaguar||₹27.8 Lakh||₹28.5 Lakh||₹30.2 Lakh||₹27.8 Lakh|
|Porsche||₹41.5 Lakh||₹47 Lakh||₹55.7 Lakh||₹45.6 Lakh|
Source: OLX Auto
Despite the price hike across all brands, Kumar said the demand pattern on the OLX platform suggested that owning a high-end car at a discounted rate was a “lucrative” alternative for customers willing to buy a vehicle in this highly inflated market. market .
It is important to note that automakers such as Maruti Suzuki, BMW, Mercedes Benz, Audi India, Kia, Tata Motors, MG Motor, Hyundai and Toyota, to name a few, are already increased the price of their cars in India due to the limited supply of parts in the market. Also, the ongoing war between Russia and Ukraine has increased the cost of purchasing auto parts.
The price increases for the new cars took effect on April 1, 2022.
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