Cars are getting more expensive. By late 2022, the average price of the two used vehicles as of the latest data from the CPI showed an upward trend, and 2023 began with the same trajectory. New cars have risen about 8.5 percent from January 2022, while used cars are up roughly 16.5 percent in the same period.

In 2022, the price increases for both new and used vehicles remained consistent with ongoing cost pressures. Logistics challenges and component shortages kept supply tight, pushing brands to focus on higher-margin, more expensive models. The result was a persistent climb in overall vehicle pricing across the market.

Alongside this, the market for SUVs continued to grow, driven by larger batteries and electric motors that raise the price of alternative powertrains. Electric and hybrid models, which often cost more upfront, continued to gain market share over traditional combustion-only vehicles, reinforcing the upward price momentum.

In the used market, one of the main drivers was supply constraints. Shortages of parts and productivity issues within brands reduced the availability of newer models, while demand remained steady, particularly in younger, more desirable segments. This dynamic created a cycle where limited supply in new cars amplified demand for used vehicles, lifting prices across the board. The shift toward low-emission zones in cities with populations over 50,000 also influenced pricing patterns by increasing the attractiveness of newer, cleaner models.

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2023 confirmed the uptrend observed in 2022, keeping the average price of new cars higher than in prior years. In some regions, the average price of a new car rose by around 10.4 percent, and used cars overall increased by about 22,000 euros on average compared with 2021, depending on the autonomous community. In many cases, the price difference for used vehicles surpassed 20,000 euros, reflecting a 20.2 percent year-over-year increase. These figures come from Ganvam’s vehicle barometer data and illustrate a broad, market-wide shift toward higher prices across both segments.

Price growth in the used-car segment did not spare the oldest vehicles either. Ten-year-old models, once considered a bargain, accounted for a sizable share of transactions in the second-hand market, highlighting how price momentum spread across age bands. Ganvam notes that the overall market picture shows a nuanced mix of demand and supply pressures, with pricing remaining elevated as a result of these intertwined factors.

As 2023 progressed, the industry hoped for a shift. Brands were expected to regain a more typical production rhythm, easing some pressure on prices. If manufacturing stabilizes and supply chains normalize, buyers might see a softer price trajectory for both new and used cars. This release of pressure could also dampen the premium demanded by urban vehicles adapted to low-emission zones, providing some relief to buyers looking for more affordable options in city markets.