Used Car Prices Surge Across Lanzarote as Demand Outpaces Supply
Lanzarote residents and long-stay visitors are facing higher costs when buying a second-hand vehicle, with the island forming part of one of the fastest-rising used car markets in Spain. Recent industry data shows that prices across the province of Las Palmas, which includes Lanzarote, Fuerteventura and Gran Canaria — have risen significantly faster than the national average.
According to figures released by Spain’s National Association of Vehicle Dealers (ANCOVE), the average price of a used passenger car in the Canary Islands reached €12,874 in May, representing an annual increase of 8.2%. In Las Palmas province, prices climbed even more sharply, rising by 11.8% compared with the same period last year. The increase was among the highest recorded anywhere in Spain.
Why Are Prices Rising?
Industry analysts point to a combination of factors affecting island markets:
- Strong demand from residents seeking affordable transport.
- Limited availability of quality second-hand vehicles.
- Higher transport and logistics costs associated with island economies.
- Continued pressure on the new-car market, which encourages more buyers to look at used vehicles.
The trend is particularly noticeable in Lanzarote, where owning a vehicle remains essential for many residents and visitors staying beyond the main tourist zones.
What It Means for Residents
For island residents looking to replace or upgrade a vehicle, the latest figures suggest buyers may need to budget more than they would have a year ago. Older vehicles remain a major part of the market, accounting for more than half of used-car transactions in the Canary Islands. Cars over eight years old now sell for an average of more than €9,500 across the archipelago.
Despite the price increases, lower-cost vehicles continue to attract strong demand, reflecting the importance of affordable mobility for households across the islands.
Advice for Tourists and New Arrivals
The rising market is also relevant for long-stay tourists, remote workers and new residents considering purchasing a vehicle rather than relying on rentals.
While buying a used car can still be more economical than extended rental periods, prospective buyers should:
- Compare prices across several dealerships and private sellers.
- Check vehicle history and maintenance records carefully.
- Factor in insurance, registration and future maintenance costs.
- Be prepared for reduced bargaining power in a seller’s market.
A Changing Market
The latest increase marks a sharp turnaround from conditions seen only a year earlier, when used-car prices in the Canary Islands were relatively stable and, in some cases, lower than national averages. The current surge highlights how rapidly market conditions can change as demand and supply shift.
For now, industry observers expect demand for second-hand vehicles in Lanzarote and the wider eastern Canary Islands to remain strong, meaning buyers may continue to face higher prices throughout the remainder of the year.
