Used cars: a market on the rise

From 12 to 24 May, the country’s car dealers are hosting the 13th edition of the ‘AutoOccasiounsFestival’, which is all about used cars. In collaboration with Luxauto, a website specialising in vehicle advertisements, the ACL was able to analyse market trends.

With 59,341 registrations according to the SNCA, the used car market was more significant than the new car market last year (46,635 new registrations). It grew by 0.9 per cent compared to the previous year. But what kind of vehicles can car buyers find there?

Overall, the Luxembourg used car market is a relatively ‘safe’ market. Prospective buyers should still be cautious and take their time when choosing a car, thoroughly checking its history and paperwork. However, the used car market in this country is considered to be reputable and of high quality. Some of the vehicles are those for which the leasing contract has expired. At the same time, the new car market is dynamic.

Due to their relatively high purchasing power, consumers in Luxembourg often buy new cars with high-quality equipment. Leasing companies also prefer well-equipped cars, which are easier to resell later on. These vehicles later find their way onto the used car market. With an average age of eight years, the Luxembourg vehicle fleet is the youngest in Europe, which in turn supports the used car market. One final detail: commercial operators are particularly active here. Only 11 per cent of the advertisements on the Luxauto website come from private sellers. This also means that nine out of ten used cars are sold by dealers.

Only 4.3 percent electric cars

47,606 kilometres on the clock and a price of 42,758 euros: regardless of model and engine type, this is the typical car you will find on the Luxembourg used car market.

However, the reality is somewhat more complex. Since the beginning of the year, 31,497 vehicle advertisements have been published on the Luxauto.lu website. 62.8 percent of these were petrol cars and 25.2 percent were diesel. The latter have a higher mileage, with an average of 75,424 kilometres on the clock, while petrol cars have averaged 39,740 kilometres. According to the advertisements, buyers have to pay an average of €33,735 for a diesel model and €45,085 for a petrol model.

Electric vehicles are establishing themselves. They account for 4.3 per cent of the advertisements published. While Luxauto published only 643 advertisements for fully electric models in 2020, there are currently 1,297. As on the new car market, these vehicles are still more expensive than those with combustion engines. On average, the price for a used fully electric car is €41,958. However, the mileage is significantly lower at an average of 23,111 kilometres.

For hybrid vehicles, which currently account for 7.8 percent of the advertisements, interested buyers can expect to pay an average of €59,382 for a mileage of 25,542 kilometres.

It should be noted that there are also five advertisements for ethanol vehicles, 17 for natural gas vehicles, 75 for liquefied petroleum gas vehicles and five for hydrogen vehicles online.

A very ‘German’ market

Like the new car market, which is strongly dominated by German brands, especially premium brands, the used car market also reflects this trend. Volkswagen accounts for 14.5 percent of the advertisements, closely followed by Skoda (12.9 percent). BMW takes third place on the luxury car podium (8.1 percent). The top 10 is rounded off by Audi (7.6 percent), Mercedes (6.7 percent), Cupra (5.4 percent), Seat (4.6 percent), Porsche (3.7 percent), Peugeot (2.9 percent) and Ford (2.8 percent). This ranking has remained relatively stable over the past five years, although Skoda has made a spectacular rise this year.

Significantly higher prices

Looking at price trends in the used car market, a clear trend can be seen. Cars are becoming increasingly expensive, while mileage is falling.

In 2020, the average price for a used car across all models and fuel types was £26,332 with an average mileage of 56,435 kilometres. This year, the figure is £42,758 (an increase of 62.4 per cent in five years!) with a mileage of 47,606 kilometres.

Prices for purely electric vehicles rose the slowest between 2020 and 2025, with an increase of 9.6 percent. For petrol cars, the increase was 55.3 percent. Average prices for hybrid vehicles rose by 50.1 percent in five years, and those for diesel vehicles by 47.1 percent.

There are several reasons for this price increase for both new and used cars: higher-quality equipment, increasing electrification and the decline of combustion engines… all these trends can be found in various reports published by the European Automobile Manufacturers’ Association (ACEA) in recent years.

It should be noted that these are the prices advertised and not the prices actually paid. Negotiation is not prohibited.