News

Car buyers face rising prices as direct sales model stalls in Spain

Car buyers face rising prices as direct sales model stalls in Spain RUSSPAIN.com © russpain.com
Car buyers face rising prices as direct sales model stalls in Spain © russpain.com
The promise of direct car sales in Spain has hit a wall as manufacturers refuse to cover the cost of unsold vehicles. Prices are up more than 40 percent in four years, while Chinese brands account for 20 percent of private sales. Traditional dealerships are far from obsolete.

Buying a car online and having it delivered to the door has become less common in Spain. The obstacle is financial: manufacturers refuse to pay for unsold cars in storage, leaving dealerships responsible for stock and back at the center of the sales process.

Francisco Galnares, CEO of Grupo Syrsa, Spain’s major auto distributor, described the direct sales model as “stuck” at a recent Observatorio Económico de Andalucía roundtable. The shift expected to push dealerships aside has fizzled. Only one small brand in Spain still uses a pure agency contract; the rest have returned to the traditional approach, with dealerships managing stock while negotiating prices.

The reversal began in 2019, when analysts said electric cars and self-driving technology would squeeze distributor profits and force direct sales, with new mobility apps adding to the pressure. The pandemic accelerated the shift: factories built cars to order, buyers waited months, and manufacturers made more money while keeping tighter control because they had no stock to finance.

That did not last. As supply chains recovered and factories sped up, unsold cars piled up, each adding costs. Galnares identifies stock financing as the basic obstacle to direct sales. When plants run at full speed, the risk and cost of unsold cars outweigh the benefits of cutting out dealers. Someone still has to pay for cars that do not sell. That remains the dealership.

Prices have surged. Syrsa reports that new cars now cost more than 40 percent more than four years ago, driven by European emissions rules and the push for electric cars. Many buyers are priced out, and Spain’s cars are getting older: the average car is now about 15 years old. Gumtree News cites industry reviews putting the average price of a new car at €30,513 in 2019 and €44,419 in 2025; after discounts, the average was still around €43,477 by July 2026. Increases have been especially sharp in mass-market segments: since 2019, A-segment car prices have risen by 78.3 percent and B-segment prices by 46.7 percent. By mid-2026, average discounts on new cars in Spain exceeded 14 percent off list prices, reflecting pressure from inventory and sales incentives.

Chinese brands are filling the gap, accounting for 20 percent of private car sales in Spain. European automakers face higher costs and shrinking profits, while Asian brands are moving in quickly, particularly with electric models. Buyers seeking cheaper options can see the change in showrooms and on the road.

For most people, buying a car entirely online remains out of reach. Buyers still visit showrooms to compare deals, often looking to unsold stock for discounts. Fixed-price direct sales are rare, mostly limited to niche brands or those that do not want to bargain. Chinese automakers are expanding their lineups, shaking up the market, and intensifying competition, recent industry reports show.

Galnares sees another twist: dealerships have adopted digital tools faster than manufacturers have learned to sell directly. The pandemic also taught the industry that selling fewer cars at higher margins can be more profitable than chasing volume. That lesson continues to shape the market.

The figures show the pressure on buyers: Chinese brands now hold 20 percent of the market, new-car prices are up 40 percent in four years, and the average car on Spanish roads is 15 years old. Delaying a new purchase brings repair costs and can also affect safety and emissions.

Buyers can ask about cars in stock, which cost dealerships the most to keep and may offer the best scope for negotiation. As long as manufacturers refuse to pay for unsold inventory, dealerships are likely to remain basic to Spain’s car market. Direct sales are on pause, leaving buyers to weigh prices against their options and negotiate.

Frank Miller RUSSPAIN.com
Editor

Frank Miller

Frank Miller covers the automotive industry, transport and Spanish road regulation for RUSSPAIN.COM