How cheap luxury cars have become on second-hand market

The increasingly large number of luxury cars returned to leasing companies and the broader supply available on the second-hand market, coupled with the decline in demand for expensive cars, have generated a price decline by up to 210,000 euros in less than two years.

With campaigns promoting price cuts of up to 50% for new cars, there has been a significant drop in prices of second-hand luxury cars, sold either by leasing companies that have repossessed them from bad payers, or by companies specialising in second-hand sales.

"At present all cars are cheaper, not only luxury cars, but also cars in the lower-priced segment. It was only natural that we should see lower prices for luxury models, as well. I saw cars at leasing companies as early as last year. It is true that now we are talking about spectacular prices, even for luxury cars," says Marius Carp, car market analyst and former manager within the Automotive Manufacturers and Importers Association (APIA).

Whilst up until now luxury cars were even considered an investment because they did not depreciate very much in time, and even increased in value right after the acquisition due to the up to two-year waiting period, their prices have now gone down significantly.

For instance, the price of a Maybach 62S, the most expensive in the German manufacturer's range, has fallen by over 210,000 euros in less than two years, even though the car has travelled no more than 22,000 kilometres.

A Bentley Arnage T Mariner, manufactured in 2009, costs 82,000 euros less than the 347,075-euro standard price. On the other hand, the models have not been "customised" by the client, but by a former client or by the importer.

"This year the volume of repossessed cars has risen considerably. They also include luxury models, which leasing companies sold for much lower than the market price, in their drive to free up the cash as soon as possible. This strongly affected the 'trade in system', under which clients sell their current car to the dealer in order to acquire a new model," said Adrian Pascu, brand manager for Porsche, Bentley and Lamborghini within Porsche Romania, the largest car importer on the Romanian market.