- The demand for pre-owned luxury cars on OLX Autos increased as new cars become costlier in 2022.
- Pre-owned BMW saw the highest demand on the used car platform, followed by Mercedes Benz and Audi.
- However, the prices of pre-owned luxury cars also saw an increase as sellers are now trying to take advantage of the slump in demand.
Customers are showing an increasing preference for pre-owned BMW luxury cars as rising costs and inflationary pressures have made buying a new car an expensive proposition. A report by OLX Autos said that the first half of 2022 saw a sharp rise in demand for pre-owned luxury cars, with BMW being the top favourite.
It was followed by Mercedes Benz, Audi, Jaguar and Porsche in that order.
OLX Autos in its report said that the supply of luxury cars in Tier 1 cities has registered an annual growth of 40% on its used-car platform. Tier II cities saw an increase of 45% over the same time frame. The company has come to this conclusion after analyzing the listing of over 50,000 luxury cars on the platform in the period January to June.
“With an increase in discretionary spending and disposable income at pre-Covid levels, we are witnessing a marked shift in the aspirations of consumers to upgrade to luxury car brands. Amit Kumar, CEO, OLX Group India, said in a statement, the pre-owned luxury car market has particularly benefited from this sentiment as well as longer waiting periods and rise in prices of new vehicles.
OLX isn’t the only one benefiting from this trend. Its competitor Spinny also saw high demand on its newly launched luxury car portal for Mercedes C Class, BMW 3 Series and Audi Q3 in the second quarter of 2022.
However, just like all new cars, pre-owned luxury cars also saw an increase in their prices as compared to a year ago.
Mercedes-Benz saw a 25% increase in average listing price, followed by Porsche by 13%. BMW prices increased by 11% compared to a year ago, while Audi and Jaguar registered growth of 6% and 2.6%, respectively.
On the other hand, Jaguar and Porsche have seen a price drop of 8% and 18% respectively in tier 2 cities.
|brand||Average Listing Price in Tier 1 in 2021||Average Listing Price in Tier 1 in 2022||Average Listing Price in Tier 2 in 2021||Average Listing 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|
|A type of animal||₹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 increase in prices across various brands, Kumar said the demand pattern on the OLX platform suggested that owning a high-end car at a discounted rate was an “attractive” option for customers who are in this highly inflated market. Wanted to buy a vehicle. ,
It is important to note that car makers like Maruti Suzuki, BMW, Mercedes Benz, Audi India, Kia, Tata Motors, MG Motor, Hyundai and Toyota have already increased the price of their cars in India due to limited supply. of parts in the market. Also, the ongoing Russo-Ukraine war has also increased the purchase cost of car parts.
The hike in prices of new cars came into effect from April 1, 2022.
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