Shifting Trends in the Used Car Market: Buyers Opting for Older Models to Save Money
In the past few years, buying a used car has become a daunting task, often resulting in higher prices than anticipated. However, recent data from iSeeCars suggests that the situation is gradually improving as buyers increasingly turn to the used market to save money on exorbitantly priced new models.
According to iSeeCars’ study, there has been a significant increase in the number of purchases of older used vehicles compared to a decade ago. Since 2014, sales of used cars that are ten years or older have seen a remarkable 30% surge. Interestingly, hatchbacks, sedans, and wagons are leading the growth charts in terms of popularity among buyers.
At the same time, newer model-year used vehicles have become more expensive compared to a few years ago, further driving buyers towards older models. While the supply of older vehicles remained stable between 2014 and 2017, it experienced a significant decline in 2020, in tandem with the skyrocketing prices of new vehicles. Over the past four years, the market share of used models has risen from 15.1% in 2020 to a substantial 22.7% in 2024, with prices averaging an increase of over $3,000.
However, the growing popularity of older models is not evenly distributed across all types of vehicles. Hatchbacks, sedans, and wagons emerge as the frontrunners in this trend. iSeeCars points out that these body styles typically experience less demanding use during their lifespan, making them excellent choices for used car buyers. Surprisingly, the popularity of these models has not resulted in a significant price increase. Many of these used vehicles are still available for prices of $10,000 or less.
The current shift in consumer behavior towards purchasing older used cars is a testament to the increasing financial burden associated with buying new vehicles. With the prices of new models reaching new heights, buyers are realizing that they can find reliable, affordable options in the used market. By opting for older models, consumers can save a significant amount of money while still acquiring a vehicle that suits their needs.
It is important to note that the growing preference for older used cars is not merely a temporary phenomenon. As the market continues to evolve, and new vehicle prices remain high, buyers are likely to prioritize cost-effectiveness, reliability, and value retention. These factors make older used cars an attractive option, particularly for individuals on a budget or those looking to maximize their purchasing power.
In conclusion, the used car market has witnessed a notable shift in recent years, with buyers increasingly gravitating towards older models to mitigate the financial strain of expensive new vehicles. iSeeCars’ study highlights the growing popularity of hatchbacks, sedans, and wagons, which provide reliable options at affordable prices. As the prices of new models continue to rise, the trend of opting for older used cars is likely to continue, offering consumers a practical and budget-friendly alternative.
