Used car buyers opt for older models to cut costs

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【Summary】Used car buyers are opting for older models to save money amid the cost-of-living crisis, according to research by eBay Motors Group. Data shows that 81% of online searches for cars this month were for models that are five years old or more. Cars in the five-year-old and older age bracket accounted for 52% of all listings on the website, with stock availability increasing by just 1.5% year-on-year.

FutureCar Staff Sep 03, 2023 9:34 AM PT

Used car buyers opt for older models to cut costs

According to new research, used car buyers are adjusting their preferences and opting for older vehicles due to the ongoing cost-of-living crisis. Data collected by eBay Motors group shows that this month, four out of five online searches for cars have been for models that are five years old or older. The analysis conducted by the firm reveals that older cars accounted for 81% of searches on its Motors.co.uk platform this month, compared to 77% at the same time last year. Additionally, cars in this age bracket made up 52% of all listings on the website, with stock availability only increasing by 1.5% year-on-year.

The most popular age bands that buyers were searching for in August were eight to ten-year-old models (16% of all searches), followed by six to eight years (14%) and ten to twelve years (14%). However, dealers were mainly stocking three to four, four to five, and six to eight-year-old models, each accounting for 13% of the total number of cars listed.

On the other hand, dealers faced challenges with declining used car stocks, reaching their lowest levels since May. Average dealer inventories dropped 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 and electric vehicles (EVs) lagged behind significantly in terms of market share, accounting for only six percent and three percent, respectively.

Lucy Tugby, the marketing director of eBay Motors Group, responded to the findings, stating that consumer demand was flat in August as buyers' attention and budgets shifted towards 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 contributed to dealers stocking fewer cars in August, and higher interest rates on stock funding may have been a factor as well. She emphasized the anticipation of the September plate-change and its potential impact on the retail sector, hoping to attract private buyers back into showrooms and generate an influx of part-exchanges for the used car market in the coming months.