Used car buyers turning to older models for cost savings

author: FutureCar Staff    

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 reveals that four out of five online searches for cars this month have been for models that are five years old or older. This is an increase from last year, where older cars only accounted for 77 percent of searches.

The analysis conducted by the firm also shows that cars in the five-year-old or older age bracket make up 52 percent of all listings on the Motors.co.uk platform, with only a 1.5 percent increase in stock availability compared to the previous year. The most searched for age bands in August were for eight to ten-year-old models (16 percent), followed by six to eight years (14 percent) and ten to 12 years (14 percent).

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 percent of the total number of cars listed. However, dealers faced 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.

In terms of fuel types, more than half (53 percent) of the cars listed on Motors.co.uk this month were petrol, followed by diesel at 38 percent. Hybrids accounted for six percent of listings, while EVs only made up three percent, indicating a lower market share for these alternative fuel vehicles.

Lucy Tugby, the marketing director of eBay Motors Group, responded to the findings by 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 played a role as well.

Tugby concluded by stating that all eyes are now on the impact of the September plate-change on the retail sector and whether private buyers can be enticed back into showrooms. The hope is that this will generate a welcome influx of part-exchanges for the used car market in the coming months.

FutureCar Staff