Used car buyers turning to older models

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【Summary】Used car buyers are opting for older models to save money in response to the cost-of-living crisis, according to research by eBay Motors Group. Four out of five online searches for cars this month have been for models that are five years old or older. The most popular age bands being stocked by dealers were three to four, four to five, and six to eight years old. Dealer inventories dropped to their lowest levels since May, and petrol cars made up 53% of listings, followed by diesel at 38%.

FutureCar Staff Sep 02, 2023 9:31 AM PT

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 a significant majority, four out of five, of online searches for cars this month have been for models that are five-years-old or older. This marks an increase from the previous year, where older cars accounted for 77% of searches, compared to the current 81%.

The analysis conducted by the firm also showed that cars within the five-year-old or older age bracket constituted 52% of all listings on the Motors.co.uk platform, with a minimal year-on-year increase of 1.5% in stock availability. The most sought-after age bands in August were for eight to ten-year-old models (16% of all searches), 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 faced challenges with their used car stocks dropping to the lowest levels since May. On average, dealer inventories decreased from 58 to 56 units month-on-month, with franchised dealers experiencing the largest decline from 75 to 70 units.

In terms of fuel type, the majority of cars listed on Motors.co.uk this month were petrol (53%), followed by diesel (38%). Hybrids (6%) and EVs (3%) continued to have a significantly smaller market share. Lucy Tugby, the marketing director of eBay Motors Group, responded to the findings by noting that consumer demand was flat in August due to the shift in attention and budgets towards summer holidays. However, for buyers 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 the decrease in dealer stocks could be attributed to seasonality and limited supply, as well as higher interest rates on stock funding. Looking ahead, the retail sector is eagerly anticipating the impact of the September plate-change and whether private buyers can be enticed back into showrooms, potentially generating an influx of part-exchanges for the used car market in the coming months.