Buying a Used Luxury Car
Luxury auto sales are growing in Canada. With more people purchasing these high ticket vehicles, we can expect to see more used luxury vehicles entering the used car market. In 2017, luxury cars accounted for 12% of all auto sales, and that number continued to rise into 2019 according to Desrosier.
Why Are Luxury Cars Selling?
A strong economy in Canada and global growth is one of the reasons for increased purchasing of luxury cars. In 2018, There were over 219,000 jobs added in 2018, and Canada saw a 2.1% growth in its economy. Experts suggest that we can expect another 2% and large handful of jobs throughout 2019. This will be leaving Canadians with more disposable income to buy goods such as cars, house improvements and so on.
Improved technology in fuel economy, navigation, consoles and overall connectivity play a big role in these decisions. High end, luxury cars are becoming an investment that hold their value much better than they did say 15 years ago. The average lifetime of a vehicle a decade ago was only 12 years. Today, the average car lasts 23 years – meaning most vehicles will pass through three to four owners before it depreciates fully.
Despite estimates that this trend of growth in the luxury market was going continue, early reports of 2019 show it’s actually declining relatively quickly. As of March 11th, 2019, there was a drop of about 10% in total sales after January and February. Still, the luxury market is at an all time high in sales and market share for Canada.
Of this, luxury passenger cars were down 22% in the first two months while luxury SUV sales were down 3.5% versus the date in 2018. The current rate of decline is more than double from from the rate of last year.
What does this mean for used luxury cars?
Many previous owners of luxury cars have traded in and upgraded. There is a very steady increase from say 2014 – 2019. Many consumers purchased new luxury vehicles in recent years, leaving their lightly used, 2-5 year old vehicles behind. We see this reflected in our inventory. As a used car dealership, about half of our inventory contains used luxury cars.
According to Kelly’s Blue Book’s top pre-owned luxury cars, a trusted resource for automotive industry transparency, cars such as the 2016 Audi A6, and the 2014 Audi Q5 appear on the list. With all types of financing available, why not treat yourself to an affordable and luxurious used car. At S.A.S.S Auto Group we have offer competitive pricing, financing and are focused on making sure every customer has a great experience when shopping. Come in today to 50 Malcolm Road, in the Guelph Auto Mall to speak to a representative and test drive the car of your dreams.