Nearly half of motorists (46%) could soon be eyeing a used car following substantial price falls, according to Startline’s latest monthly Used Car Tracker.
When told that used car prices have fallen by an average of almost 20% in the last year, 21% said that it would make them a lot more likely to buy and 25% a little, shows March’s Startline Used Car Tracker.
Paul Burgess, CEO at Startline Motor Finance, said: “Used car prices started rising quite dramatically thanks to stock shortages and high demand following the pandemic, and largely peaking sometime in early-mid 2023.
“However, since then, better supply and lower levels of interest from consumers mean that prices have fallen quite rapidly. While they are still markedly higher than pre-Covid, they have dropped by an average of about a fifth in the last year.
“Many people have been persisting with the same car they’ve been driving for years, thinking they can’t afford to make a change, but now might be the moment when they find they can finally re-enter the market.”
However, almost half of motorists surveyed (48%) by Startline said they didn’t know used car prices had decreased and 7% believed they would have to fall much further before they considered buying a car.
Burgess said: “Most people don’t look at used car prices regularly unless they are thinking of making a change, so it’s not surprising that so many aren’t aware that there has been a price fall. If it becomes more widely known, we may see an increase in demand.
“Also, it’s interesting that only 7% of people still see price as a barrier to purchasing. The time when many consumers feel that they have been priced out of the used car market might be coming to an end, which is good news for everyone.”
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programs. This time, 304 consumers and 61 dealers were questioned.