The demand for used cars is accelerating.

By George Lampiris

Used cars are turning the global turmoil that has prevailed in recent months in the car market, where, due to the lack of semiconductors but also due to the pandemic, the production of new vehicles has been significantly reduced. At the same time, however, inflation, which is constantly rising, exceeding the 11% threshold for May, is another key reason that has turned car buyers to used and, therefore, cheaper cars.

The survey conducted by the used car sales company Spotawheel Greece shows that 59.5% of potential buyers do not have the financial ability to buy a new car. At the same time, 48.5% of buyers-consumers report that the used one is a more advantageous option, since its devaluation is lower after the first year of release, in contrast to a new vehicle. However, as recorded through the same survey, the limited availability of new cars (6.5%) combined with the long wait on delivery time (7%) are among the least important reasons to prefer a used car. In addition, a percentage of the participants in the survey, of the order of 12.75%, answer that they do not want to worry about any minor damages, so they choose to buy a new car.

Regarding the ways of financing the purchase of a car, a percentage of the respondents, amounting to 57%, answered that they choose to buy their next car with cash. There are also many who choose to exchange their old car, which will be the down payment for the purchase of their new car. The percentage of respondents who would make such a choice amounts to 15.5%. Also, a percentage of 11.8% state that they would like to get the new car on loan. 12.3% say they are not sure how they would buy a new car and another 3.5% say they would lease it.

7 out of 10 choose the prestige of the brand or model they are going to buy

The majority of potential buyers, ie 68%, when asked “what is the most decisive factor in choosing a particular car”, answered that it is the prestige of the brand or model. Another key choice for 57% is reliability and for 54.75% the fuel economy matters a lot, while for 53.5% the security it offers. 38% stand on the technology provided by each car, 24.5% focus on comfort, 19.25% on price and 18.5% on duration and coverage offered by the warranty to each buyer. The percentage of those who choose a car based on its appearance is significantly limited, as it amounts to only 17%, while a 13.25% look to have enough space and trunk for luggage or everyday shopping.

Reduced confidence for used dealers

The reasons that would lead a buyer to pay more money to buy a used one are found in the desire of 42% to pay more as long as he receives a checked and certified car. This is a response that suggests widespread uncertainty and a lack of consumer confidence in the second-hand industry.

17.5% and 14% state their willingness to pay more as long as they save the bureaucracy and the volume of collection of the required supporting documents, but also have the ability to face a simple and fast purchase process without much formalities. On the other hand, 14.5% answer that they would not pay even more euros for any form of additional benefit.

Decreased confidence in general car dealers

If one looks at the consumer relationship with car dealers, what one will find is that 43.5% turn to official dealerships, which also have a used car sales channel. Immediately after in terms of the trust that they manage to gain from the potential buyers come the individuals. Specifically, 31.5% of respondents answer that they trust for the purchase of a used car an individual who previously owned it. Confidence in general used car dealers is particularly limited. The insecurity that has been created from the previous years is typical, as in several cases phenomena of falsification of the actually traveled kilometers were found, as well as the exact maintenance history of a vehicle.

Regarding the most reliable cars, according to Greek consumers, 74.75% answer that they are those that have been registered in Greece from the beginning by domestic dealerships. Only 23.25% consider cars imported from abroad reliable.

85% would not buy a car online without seeing it – The Exceptions

Finally, regarding the question of whether someone would buy a car online without having seen or driven it, 84.75% answered negatively and only 15.25% positively. Counterweights to this lack of trust are for 31% benefits such as the right to full refund, for 11.5% the certification of the condition of the car and for 7.7% the long warranty period.

The reasons for someone to replace their car

47%: Needs replacement

24.25%: I wanted a new technology car

15.25%: I found a good offer

15%: The family grew up – I had a child

12.25%: Offers reduced fuel consumption

10.5%: I got a salary increase – I have extra income

9%: Other reasons

8.25%: My old car is harmful to the environment