Luxury Brands Nudge Spain Used-Vehicle Prices Upward

MADRID – Used-vehicle prices increased 1.6% in the first half of 2014 in Spain, due to inventory shortages and a 1.8% uptick in demand for midsize and luxury vehicles, according to German consultancy AutoScout24.

Audi, BMW, Mercedes-Benz and Volkswagen were the brands in greatest demand during the period, accounting for 34% of the used-car market, up slightly from 33.4% year-ago. Audi sales through May increased 38% compared with prior-year, followed by VW (33.8%), Mercedes (27.8%) and BMW (20.7%).

Used-car sales rose just 1.1% in first-half 2014, compared with a 17.8% jump in new-car deliveries. But Gerardo Cabanas, general manager of AutoScout24 Spain, expects strong demand for used vehicles in the second half, with full-year sales projected at 1.7 million units.

Secondhand vehicles’ “main attraction, together with significant new incentives to buy, is to make real the car of our dreams, the one every driver always wanted to buy but could never afford,” Cabanas notes.

Emotion may be driving demand for upmarket used cars, the AutoScout24 report indicates.

Many customers seeking social prestige but cannot afford a new car are showing interest in used models such as the Audi A3, A4 and A6; BMW118, 320, 220 and X5; and some Mercedes products, among others.

According to AutoScout24, another factor in the first-half price recovery is the increasing attractiveness of so-called young cars between 3 and 5 years old, which claimed an 8.3% share of the total used-car market and saw sales to professionals climb 12.7%, more than any other customer segment.