Fuel prices, inflation and higher household costs continue to influence the way people travel. With running a car becoming increasingly expensive, many motorists are looking for more affordable alternatives and changing the way they buy their next vehicle.
If you’d like to understand why supply has remained so restricted, our valuation guidance hub contains more articles covering current automotive market trends and industry developments.
Here’s how rising costs are reshaping the used car market.
More motorists are driving less
Research has shown that many motorists have started reducing their car usage as fuel prices continue to rise. Some are switching to public transport, while others are choosing walking or cycling for shorter journeys.
Alternative forms of transport are also becoming more popular, including:
- Walking
- Cycling
- Car sharing
- Electric bikes
- Electric scooters
However, for many households, giving up a car completely simply isn’t practical. Instead, buyers are increasingly looking for cheaper vehicles that cost less to purchase and run.
Affordability is now the biggest priority
For many used car buyers, affordability has overtaken almost every other purchasing factor.
Dealers across the UK have reported that customers are placing far greater emphasis on:
- Purchase price
- Fuel economy
- Running costs
- Insurance costs
- Vehicle reliability
Mileage, once one of the biggest deciding factors, has become less important than finding a vehicle that fits within a tighter household budget.
If you’re trying to keep running costs down, our guide to The Most Popular First Car Options is also worth reading, as many of those economical models make excellent affordable used cars.
Dealers are changing the cars they stock
As buyer priorities have changed, dealerships have adjusted their stock accordingly.
Many retailers are now focusing on:
- Smaller hatchbacks
- More fuel-efficient models
- Older vehicles with proven reliability
- Cars at lower price points
This reflects changing customer demand, with buyers increasingly choosing vehicles that are cheaper to own rather than simply newer or more prestigious.
Likewise, our article on Are Diesel Vehicles Bucking the Electric Revolution? explores why efficient diesel models continue to attract strong demand despite the growing shift towards electrification.
Older, higher-mileage cars are becoming more attractive
Recent industry research suggests more buyers are willing to compromise on age and mileage if it means lowering the overall purchase price.
Many motorists are now choosing:
- Older vehicles
- Higher-mileage examples
- Smaller engine sizes
Providing the vehicle has been properly maintained and has a good service history, these cars can often represent excellent value for money.
Diesel demand remains surprisingly strong
Although electric vehicles continue to grow in popularity, diesel cars still appeal to many buyers.
For motorists covering higher annual mileages, diesel models often offer:
- Strong fuel economy
- Lower long-distance running costs
- Lower purchase prices than many hybrid or electric alternatives
As fewer new diesel vehicles enter the market, good used examples may continue attracting healthy demand for several years.
The semiconductor shortage is still affecting supply
The semiconductor shortage has significantly reduced new car production across the automotive industry.
With fewer new vehicles entering dealerships, there are also fewer cars eventually filtering into the used market.
This reduced supply has helped support used car prices, particularly for:
- Small hatchbacks
- Fuel-efficient family cars
- Reliable low-to-medium mileage vehicles
What happens next?
As household budgets remain under pressure, demand is likely to stay strongest for affordable, economical used cars.
Meanwhile, larger vehicles with higher running costs could experience softer demand as buyers continue prioritising value over luxury.
The coming years are likely to bring significant changes in buying habits, with affordability remaining one of the biggest drivers of the used car market.
Thinking of getting a value for your current car?
If you’re ready to upgrade, downsize or simply see what your vehicle is worth, Jamjar compares offers from trusted UK car buyers to help you find the best price quickly and without the hassle.
Simply enter your reg number into our free online valuation tool and let us do the rest.