Increasing Demand for Used Cars Amidst Slow Sales of New Vehicles
In the current automotive market scenario, new vehicles are spending more time on dealers’ lots, while used cars are being sold at a faster pace. This shift in consumer behavior is evident in the rising demand for pre-owned vehicles, especially in the case of Honda and Lexus models that are selling swiftly compared to premium vehicles.
Consumer Preference for Used EVs and Hybrids
Despite the challenges posed by the pandemic-induced price surges in both new and used vehicle markets, consumers are showing a strong inclination towards purchasing used electric vehicles (EVs) and hybrids. The data indicates that while used EVs are gaining popularity, hybrids are currently the top choice among buyers.
Key Trends in the Used Car Market
Over the past few months, the average time new cars spend on the market has increased slightly, whereas used vehicles are experiencing a significant reduction in the time taken to find buyers. This trend highlights the growing interest in secondhand cars among consumers.
Fastest-Selling Used Vehicles in March 2024
According to iSeeCars data, Lexus models dominated the list of fastest-selling used vehicles in March. The Lexus RX 350h emerged as the top-selling one- to five-year-old secondhand vehicle, followed by other Lexus and Toyota models. This trend signifies a strong preference for premium brands in the used car segment.
Slowest-Selling Used Vehicles in March 2024
On the contrary, premium vehicles from brands like Genesis, Mercedes, Lincoln, Audi, and Maserati faced challenges in finding buyers, resulting in longer days on the lot. This disparity between fast-selling and slow-selling models reflects shifting consumer preferences in the used car market.
EVs vs. Hybrids: Sales Performance
While hybrids continue to be popular choices for buyers, EVs are gaining traction in the used car market. The data indicates that new EVs spend more time on the market compared to hybrids, but used EVs have a quicker turnover rate, suggesting a growing demand for pre-owned electric vehicles.
Brand Performance in the Used Car Market
Honda emerged as the fastest-selling brand in March, closely followed by Lexus. Tesla also showcased a strong performance, indicating a robust demand for its used vehicles. The data further highlights the varying sales pace of different brands, with premium and non-premium brands experiencing contrasting trends.
Overall, the dynamics of the used car market are evolving rapidly, with consumer preferences shifting towards pre-owned vehicles, particularly hybrids and EVs. As prices normalize and demand continues to rise, the trend of faster sales of used cars is expected to persist in the coming months.