Used car buyers opt for older models to cut costs.

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【Summary】Used car buyers are opting for older models due to the cost-of-living crisis, according to research by eBay Motors Group. The study found that 81% of online searches for cars this month were for models that are at least five years old. Older cars made up 52% of all listings on the website, with stock availability only increasing by 1.5% year-on-year. Dealers stocked more three to eight-year-old models, while the most popular age bands searched for were eight to 12 years old.

FutureCar Staff Aug 31, 2023 4:22 PM PT

Used car buyers opt for older models to cut costs.

According to new research, used car buyers are changing their preferences and opting for older vehicles due to the ongoing cost-of-living crisis. Data collected by eBay Motors group shows that four out of five online searches for cars this month have been for models that are five years old or older. In fact, older cars have made up 81% of the searches on the Motors.co.uk platform this month, compared to 77% at the same time last year.

Experts have found that cars in the five-year-old or older age bracket make up 52% of all listings on the website. Although stock availability has only increased by 1.5% year-on-year, the most searched for age band in August was for eight to ten-year-old models, accounting for 16% of all searches. This was followed by six to eight years (14%) and ten to 12 years (14%).

Interestingly, the most popular age bands being stocked by dealers were three to four, four to five, and six to eight-year-old models, each accounting for 13% of the total number of cars listed. However, dealers continue to face stock shortages, with used car stocks dropping to their lowest levels since May. Average dealer inventories decreased from 58 to 56 units month-on-month, with franchised dealers experiencing the biggest shortfall, dropping from 75 to 70 units.

When it comes to fuel types, more than half (53%) of the cars listed on Motors.co.uk this month were petrol, followed by diesel at 38%. Hybrids made up 6% of the listings, while electric vehicles (EVs) only accounted for 3% of the market share.

Lucy Tugby, marketing director of eBay Motors Group, responded to the findings by stating that consumer demand was flat in August as buyers focused on summer holidays. However, for those who needed a car out of necessity, the focus was on older age profiles, highlighting the impact of the cost of living crisis on affordability. Tugby also mentioned that limited supply and seasonality led to dealers stocking fewer cars in August, and higher interest rates on stock funding may have played a role as well. The upcoming September plate-change will be closely watched to see if it will entice private buyers back into showrooms and generate more part-exchanges for the used car market in the coming months.