The majority of dealers have changed the profile of cars they stock on forecourts as consumer spending comes under pressure.
Sixty-three per cent of dealers have changed the types of cars they are stocking in response to the cost of living crisis, the dealer section of July’s Startline Used Car Tracker shows.
More economical cars are being offered by 26%, cars that cost less to lease or buy by 24% and smaller cars by 13%, according to the recently-introduced survey, now in its third month.
More than a third, 37%, of dealers say buyers now want cars that are more economical to run, 29% cars that cost less to buy or lease and 15% smaller cars.
Gregor Sutherland, COO at Startline Motor Finance, said: “It’s clear that the effects of the cost of living crisis are affecting consumer used car choices and many are thinking about what their new purchase will cost to run.
Dealers are already starting to react to this within their stock mix, and we could see demand for smaller, cheaper, more economical cars continue to rise throughout the rest of this year at least.
“It could have quite an effect on the shape of the used car sector as consumers and dealers adjust to more stringent economic conditions.”
Dealer sentiment regarding the used car sector also continues to fall. In the June Startline Used Car Tracker, there was a marked 21 percentage point drop to 12% in dealers who felt optimistic about the used car sector.
While this metric has recovered by a single percentage point this month, there has also been a 9 percentage point increase in those who feel pessimistic to 43%.
The Startline Used Car Tracker is compiled for Startline Motor Finance by APD Global Research.