Used car buyers opting 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. Data shows that 81% of online searches for cars this month have been for models that are five years or older. Older cars made up 52% of all listings on the website, with stock availability increasing by only 1.5% year-on-year. The most popular age bands searched for were eight to ten-year-old models, followed by six to eight years and ten to 12 years.

FutureCar Staff Sep 02, 2023 4:28 PM PT

Used car buyers opting 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 reveals that this month, four out of five online searches for cars have been for models that are five years old or older. This is an increase from last year, where older cars made up 77% of the searches on the Motors.co.uk platform. The analysis also shows that cars in that age bracket accounted for 52% of all listings on the website, with only a 1.5% increase in stock availability compared to the previous year.

Among the age bands searched for in August, the most popular were eight to ten-year-old models, followed by six to eight years and ten to 12 years. However, dealers seemed to stock more 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 in terms of stock availability, 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 and electric vehicles (EVs) continued to have a smaller market share, with only six percent and three percent respectively.

Lucy Tugby, marketing director of eBay Motors Group, commented on the findings, stating that consumer demand was flat in August due to buyers' focus and budgets shifting towards summer holidays. However, for those buyers who needed a car out of necessity, the preference was for 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. 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.