As the automotive market rebounds from pandemic-related disruptions, the dynamics of new and used car sales are shifting, with increasing demand for secondhand vehicles. While new car sales have seen a slight slowdown, the used car market is booming, with vehicles flying off the lots at a rapid pace.
According to data from iSeeCars, the average time a new car spends on the market increased from 44.4 days in October to 54 days in March. In contrast, the average used car took just 34.2 days to find a buyer in March, down from 49.2 days in October 2023.
Buyers are showing a strong preference for hybrids and electric vehicles (EVs) in both the new and used segments. In March, new EVs spent an average of 70 days on the market, compared to 36.4 days for used EVs. Hybrids, particularly the hybrid Lexus RX 350h, emerged as the fastest-selling one- to five-year-old secondhand vehicles, spending an average of just 12.3 days on the market.
Lexus dominated the used vehicle sales charts in March, with four out of the five fastest-selling secondhand vehicles being Lexus models. However, despite its dominance, Lexus was only the second-fastest selling brand, with Honda taking the top spot with vehicles spending just 26.1 days on the market.
Tesla also performed well in the used car market, ranking as the fourth-quickest selling brand in March. Used Tesla vehicles took dealerships just 27.6 days to find buyers, representing a 19.4 percent faster turnover than the industry average. Tesla’s models were among the fastest-selling secondhand battery-powered vehicles, along with Audi’s Q4 e-tron and Rivian’s R1S.
The rapid sales pace of EVs in the secondhand market may be attributed to falling prices for new EVs. As automakers reduce prices, the market for used electrics becomes more attractive to consumers, highlighting a growing interest in EVs, particularly when priced competitively.
