Used luxury vehicles selling quickly

iSeeCars executive analyst Karl Brauer describes the Mercedes-Benz G-Class as “the embodiment of luxury.”

As a used vehicle, the Mercedes-Benz G-Class also sells quickly, even with the high average pre-owned price of $140,921.

In fact, the  G-Class was the fastest-selling used vehicle in February, according to a new study from iSeeCars.

Regarding buyers of vehicles such as the G-Class, Brauer said in a news release, “These used car-buyers can easily afford a new vehicle, but are likely drawn to used versions in higher trims, likely with expensive add ons.”

Most of the fastest-selling used cars are luxury cars

iSeeCars analyzed more than 1.2 million new and used cars sold in February (from model years 2016 to 2020) and found that the average used car takes 42 days to sell. That compares to 38.9 days in to January.

“While the high demand for expensive vehicles, namely luxury SUVs, carried over from January to February, the increased days to sell for both new and used cars suggests that there is slowing demand for both new and used cars,” Brauer said.

Brauer also said, “This could be because more 2021-model-year vehicles have entered the market, or because fewer people are buying cars due to winter storms or because they are waiting for their tax returns and stimulus checks.”

iSeeCars also analyzed the top 20 fastest-selling used vehicles. The average used vehicle takes 42 days to sell, and with the top 20 fastest-selling vehicles averaging 31.2 days on dealer lots, that is 25.7% faster than average.

The Hyundai Palisade midsize SUV remains as the second-fastest-selling used vehicle. The similar Kia Telluride ranked ninth, and that is down two positions from its seventh-place January rank.

“These vehicles debuted for the 2020 model year and have sustained their popularity, so there still aren’t many of them in the used-car marketplace,” Brauer said.

The Lexus NX 300, the BMW X6, the Land Rover Range Rover Velar, the Lexus RX 450h, and the Tesla Model X are five additional luxury SUVs joining the top-ranked Mercedes-Benz G-Class on the list.

“Luxury SUVs continue to be a popular vehicle segment in February as consumers who aren’t negatively affected by the pandemic are making big-ticket purchases with the money they’re saving from reduced travel and entertainment,” Brauer said. “The Tesla Model X remains a fast seller, even as used inventory is growing since its 2015 release.”

An additional alternative-fuel vehicle is new to February’s fastest-selling list, the BMW I3.

“The BMW i3’s appearance on the list could be tied to higher gas prices, as well as heightened buzz for electric vehicles as automakers announce their future plans to go all electric,” Brauer said.

Three sporty German cars make the list.

Those include BMW 4 Series at No. 3, the fourth-ranked BMW 5 Series, and the Audi S5 Sportback at No. 8.

“Consumers are opting for these high-performance vehicles as a source of joy during the pandemic, and low interest rates have made luxury car ownership attainable for a wider population of consumers,” Brauer said.

Brauer also said, “Additionally, the average price of a used hybrid version of the 5 Series is $3,000 less than its gasoline counterpart, which helps explain why consumers are opting for the hybrid model.”

Used models that sold more slowly

iSeeCars compared the month-over-month changes in average selling time and identified several used cars that had been the fastest-selling in January but sold more slowly in February.

With a nine-day increase, the Lexus LX 570 saw the greatest change in days on market.

“Although the Lexus LX 570 large off-road SUV saw the greatest increase in days-on-market, it still sells quicker than the average vehicle,” Brauer said. “There is still a demand for this expensive, truck-based hauler, but it hasn’t seen a redesign since 2008 so shoppers may be opting for something more modern.”

Two Jeeps, the Wrangler and the Compass, were among the fastest-sellers in January and fell out of favor in February.

“New-car inventory numbers remained constant for both vehicles, so it appears that demand for used versions has lessened, perhaps due to Jeep’s current cash-back incentives and zero-percent financing on new versions of these vehicles,” Brauer said.

Brauer said car buyers making a new- or used-car purchase might have trouble finding the most in-demand vehicles. They could end up paying a premium for them in the used-car marketplace, he said.

“Many of these fastest-selling vehicles are popular cars that are hard to find due to the effect of the pandemic on supply chains, limited production, or because they are new models that aren’t yet abundant in the used-car marketplace,” Brauer said.

Top 20 Fastest-Selling Used Vehicles in February

SOURCE: iSeeCars.com