In Luxembourg, like almost everywhere in Europe, the prices of used cars are soaring. A trend which is directly linked to the drop in production of new vehicles, itself impacted by the Covid crisis, the war in Ukraine, the semiconductor crisis or even logistical difficulties… “It’s the law of the supply and demand, underlines Philippe Mersch, president of the Federation of automobile and mobility distributors (Fedamo). A limited number of available cars automatically leads to higher prices and reduces the number of transactions”.
As proof, 58,633 used cars were registered in the Grand Duchy in 2022, i.e. 10.9% less than in 2021, which was admittedly a record year in this area. The number of new cars registered last year (42,094) was the lowest total since…1999. “We started to see a rise in used car prices towards the end of the first half of 2021, notes Christian Waller, Used cars director at the Losch dealership. It is especially very recent vehicles that are impacted, entry-level and mid-range.
At this dealership, the increase recorded between the beginning of 2021 and the end of 2022 amounts to an average of 19%. “We have reached a plateau and the situation has now normalized, further believes Christian Waller. We will not see a price increase of this magnitude in the future”. Who benefits from these inflated vehicle mileage prices? First of all to people who sell their car directly or as part of a trade-in. “Dealers use the current market to define offers. They are therefore the ones who take a risk by taking over the vehicles, when the market is very high, ”concludes the Used cars director at Losch.
