In today’s episode of CBT Now, Karl Brauer, Executive Analyst for iSeeCars.com, shares insights into the increasing market share of 10+ year-old vehicles. With rising costs for both new and used cars, consumers are finding value in older, well-maintained vehicles. Brauer discusses the impact on the automotive industry, including service demand, vehicle longevity, and changing consumer preferences.
Key Takeaways
1. Vehicles over 10 years old now represent a 30% higher market share than they did a decade ago. Brower attributes this to rising costs across the board for new and used cars, prompting consumers to seek more affordable alternatives.
2. Although 10+ year-old cars are still more expensive than a decade ago, they remain the least costly option for budget-conscious buyers. Consumers are turning to older models to avoid the hefty price tags of newer vehicles.
3. Cars with over 150,000 miles are no longer being written off. Brower mentions that service bays—both dealer and independent—benefit from this trend as more consumers opt to maintain their older vehicles, pushing them well past the 200,000-mile mark.
4. Sedans, hatchbacks, and wagons, traditionally more affordable than trucks and SUVs, have seen the largest growth in market share among older cars. This indicates that consumers are looking for the most economical form of transportation.
5. Rising costs across the automotive landscape—such as insurance, registration, and maintenance—are driving buyers to seek ways to cut their monthly expenses. Older vehicles, which tend to be cheaper in all these areas, are increasingly seen as a more viable option in the current economic climate.
“These cars show no major issues even at 200,000 miles. Why avoid buying a 10-year-old car when the alternative is a much newer one at a far higher cost?” – Karl Brauer
