Luxury shoppers drive uptick in used-car interest for Q1
Jumpstart Automotive Media discovered a 6-percent uptick in shopping for used cars across its portfolio of sites during the first quarter, which it attributes to a rise in shoppers looking for used luxury vehicles, in particular.
Used luxury shopping is up 11 percent year-over-year, while down 3 percent for new, according to Jumpstart’s latest quarterly report, titled Share of Shopper Interest Highlights.
Similarly, among non-luxury brands, shopping is up 4 percent for used cars and down 2 percent for new.
“This is one of the shifts we have expected to see as new cars sort of flatten from a retail and sales standpoint and also as the supply becomes greater on the used side,” Jumpstart marketing and strategic insights vice president Libby Murad-Patel said in a phone interview with Auto Remarketing.
“Between sales and from our audience standpoint, luxury is driving a lot of this activity.”
She said from a sales standpoint, a lot of the luxury brands are holding very strong right now.
According to Murad-Patel, the used market is growing because those shoppers interested in the technology of new vehicles and shoppers who want to try luxury for the first time often seek out used models.
“Why it particularly effects the used market is because used prices are starting to soften a little bit, and it’s a great way for someone to enter the luxury space for the first time,” Murad-Patel said.
“We definitely see that on the certified side or near-new vehicles in the 1- to 3-year-old age range, that is typically a nice entry point for a consumer who maybe doesn’t typically buy luxury, but wants test out those brands because you get such a good price discount. You’re getting a good product with low mileage, newer technology and high-end features,” she said.
Interestingly, Patel said the brands that are starting to see more interest from shoppers aren’t the biggest brands, such as Audi, Mercedes, and BMW, but some of the smaller luxury brands like Jaguar, Land Rover and Tesla.
“Certainly Tesla’s been in the news a ton, so they're seeing a lot of growth as well,” she added.
Additionally, Jumpstart’s latest quarterly report features the vehicle segments, makes, and models that captured the largest share of online auto shoppers during Q1.
The data reported represents the percentage share of online shoppers across Jumpstart’s portfolio that consists of more than 25 million in-market auto shoppers researching vehicles.