All over the world, the used car market has grown big as it has become a necessity that aids the majority of the world population to fulfil their mobility needs largely due to its affordability compared to new cars.
In Nigeria, for instance, over 90 percent of the cars sold and bought are used cars such that the market has been divided into foreign used cars popularly known as tokubo and Nigerian used car market.
Overall used car sales are faster by 6.1 percent, but the average new car is selling 25.7 percent slower, according to a new study by iSeeCars.com.
The study ranked the Honda HR-V as the fastest-selling used car with an average selling day of 34.4 while Acura ILX is rated as the second fastest-selling used car with an average selling day of 35.3.
Toyota Highlander Hybrid ranked as the third fastest-selling used car with an average selling day of 36.6 while Acura RDX ranked the fourth with an average of 36.8.
Hyundai Venue ranked as the fifth fastest-selling used car with an average selling day of 38 while Honda Insight ranked sixth with an average selling day of 38.3.
Honda CR-V and Honda Civic were ranked seventh and eighth fastest-selling used cars with an average selling day of 38.5 and 38.8 respectively.
Toyota C-HR and Toyota Sienna hybrid ranked ninth and tenth fastest-selling used cars with average selling days of 38.9 and 39.1 respectively.
Others include Toyota Tundra, GMC Yukon, Kia Telluride, Acura TLX, Honda Pilot, Chevrolet Corvette, Acura MDX, Honda Accord, Cadillac Escalade, ESV and Toyota 4Runner.
With nine Hondas and five Toyotas ranked in the top 20 fastest selling used cars, it has become clear that used car shoppers are seeking trusted brands with a reputation for quality and reliability.
The report further revealed that lower used car prices and faster sales indicate ongoing interest in used cars as prices moderate.
The growth of the used car market is being driven by the fact that consumers still need to replace their ageing vehicles with more recent used cars, and many have been waiting for lower prices since the pandemic drove costs up three years ago.
iSeeCars predicted that demand should stay strong for used cars as prices slowly drop over the next six to 12 months.
“Used car prices were initially driven up by a lack of new car inventory. Now there are plenty of new cars on dealer lots, but consumers aren’t rushing out to buy them. The new car average time-to-sale is down by more than 25 percent even as used cars are selling 6.1 percent faster. This shows that buyers are continuing to seek value in the used car market – despite a wide range of new car options,” said Karl Braue, executive analyst at iSeeCars.
Electric vehicle sales have slowed to a crawl, with new EVs moving from 25.2 days to sell to 50 days over the past year. Used EVs are selling even slower, shifting from an average of 26.4 days a year ago to 57.8 days now, a 120 percent increase. These EVs are selling slower despite major price drops over the past year.
“The good news for electric vehicle buyers is that EVs are both cheaper and harder to sell in 2023, putting pressure on automakers and dealers to move them in a market that appears to have lost interest,” said Brauer.
According to Brauer, “Both new and used EVs are taking more than 50 days to sell on average, meaning it takes more than twice as long for dealers to find EV buyers compared to a year ago.”
“It’s interesting that used cars, overall, are selling 6.1 percent faster than a year ago, but the most popular models are selling 26 percent slower,” said Brauer.
Brauer said it suggests that consumers are considering a wider range of used cars and seeking the best value wherever they can find it.
“Essentially, the strong grip previously held by popular used models is loosening,” Brauer added.