Automotive market trends: Total cost of ownership and used car demand

The automotive market is seeing a shift in consumer behavior, with a growing emphasis on the total cost of ownership rather than just the initial purchase price. Research indicates that different engine types carry varying reliability risks; for instance, a study by What Car? found defect rates of 19% for petrol cars, 21% for hybrids, 27% for electric vehicles, and 29% for diesel engines.

There is a notable trend among high-income buyers toward the used car market to avoid steep initial depreciation. In Macedonia, customs data shows a heavy reliance on used vehicles, with significantly higher import volumes for second-hand cars compared to new ones. For luxury brands like Rolls-Royce, value can drop by as much as 20% immediately after leaving the showroom.

When purchasing used vehicles, experts advise looking beyond the sticker price to account for hidden costs such as registration taxes, insurance, and immediate maintenance needs like tires or brakes. Additionally, the dealership experience is becoming more complex as the market fragments across various fuel types, including a rise in hybrid and electric models.