Luxury SUVs dominate used car market
Used cars were always popular, but what’s surprising is amid the pandemic, consumer preferences are turning toward used luxury cars. In fact, the fastest-selling used cars in February were luxury cars.
According to an iSeeCars analysis of more than 1.2 million new and used cars sold in February from model years 2016 to 2020, the average used car took 42 days to sell. The top 20 fastest-selling vehicles, including luxury SUVs, averaged just 31.2 days.
Mercedes-Benz G-Class was the fastest-selling used car, taking an average of 26.6 days to sell at an average price of $140,921. iSeeCars analyst Karl Brauer says that buyers of luxury models like the G-Class “can easily afford a new vehicle, but are likely drawn to used versions in higher trims, likely with expensive add-ons.” According to automotive news and buying site MotorBiscuit, the G-Class retains its value better than the average vehicle and other Mercedes models.
Hyundai Palisade, a midsize SUV, was the second fastest-selling vehicle, taking an average of 27.5 days to sell. The BMW 4 Series ranked third selling in 29.3 days, followed by the BMW 5 Series Hybrid (29.6 days) and Chevrolet Corvette (29.7 days). The latter took top honors for the fastest-selling new car in February.
As is the case with new cars, SUVs dominate the list of the top 20 fastest-selling used vehicles. These included the Lexus NX 300, which took an average of 29.8 days to sell, the BMW X6 (31.6 days), the Land Rover Range Rover Velar (31.8 days), the Lexus RX 450h (31.8 days), and the Tesla Model X (32.8 days).
According to Brauer, consumers with high-paying jobs that have not been negatively impacted by the pandemic have been able to save money due to reduced travel and entertainment. Low interest rates have also spurred the purchase of luxury cars.
iSeeCars found that the days on market of used cars lagged in February compared to the previous month. Both new and used cars took nearly three additional days to sell compared to January’s totals, which were 46.2 days for new cars and 38.9 days for used cars.
Several used cars that were the fastest-selling in January sold more slowly in February, like the Lexus LX 570 which saw a nine-day change in days on the market. Two Jeeps, the Wrangler and the Compass, lagged in days on market. Brauer speculates the slower demand for both new and used cars could be due to more 2021 models entering the market, bad winter weather, and a likelihood that consumers are waiting for their tax refunds and stimulus checks before they buy.
As more people across the country are vaccinated and the economy improves, a sense of optimism buoys the country and potentially the market for regular and luxury used vehicles. See the full list of fastest-selling new and used cars and more here.
When in the market for a used car, stop by Carousel Preowned. CarouselPreowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.