Just when we gladly bid a warm farewell to the last year of the previous decade, a virus outbreak from CHINA put everything to halt. Credit goes to COVID-19. It’s difficult to understand the market’s current position because there is always a risk of a second wave of COVID-19. However, there is a drastic decline in the sale of luxury cars, the annual price of 20% in 2020.
Subsequently, prices for new cars have also increased in recent times due to the Rupee’s exchange rate versus the Euro going up about 15 percent during the previous year.
Other factors that play a crucial role include a limited supply of new cars from luxury automakers due to no production during the lockdown. Furthermore, a considerable increase in prices due to BS6 regulations comes into play.
The lack of available inventory in the used car segment, with owners now holding on to their cars a little longer to avoid a significant purchase judgment, could affect their finances.
The increase in prices on used luxury cars has not gone up much, but it has affected only a specific range or size of vehicles.
The prices increase the entry-level luxury sedan or SUV segment (like the Mercedes-Benz CLA/GLA) and the well-established mid-size sedans and SUVs (Mercedes-Benz C-Class/E-Class/GLC/GLE).
The market value of luxury hatchbacks (A-Class) on one side of the luxury car spectrum and full-size sedans like the S-Class. Those without any manufacturer warranty have seen a drop in prices.
With the COVID-19 scenario still looking like a long drawn out affair, the used car market could continue to see growth in the luxury car sector.