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Used car buyers becoming less brand loyal, dealers report

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Almost three quarters of dealers believe used car buyers are becoming less loyal to established vehicle brands, as consumers place increasing emphasis on value for money and affordability.

According to the latest Startline Used Car Tracker, 74% of dealers say brand loyalty among used car customers has weakened, reflecting broader changes in buying behaviour across the automotive market.

More than half (52%) of dealers believe price and value are now the key drivers of purchasing decisions, while 32% say vehicles from newer market entrants often represent a better proposition for consumers.

The research also found that 28% of dealers believe some established manufacturers have priced themselves out of reach for many buyers, while 12% point to a wider decline in brand loyalty across consumer goods. A further 7% say younger buyers are particularly willing to consider unfamiliar brands.

In contrast, just 17% of dealers believe most used car buyers still prefer to purchase vehicles from brands they already know and trust. The same proportion say established manufacturers continue to benefit from greater credibility, while 8% note that some newer entrants are still hindered by limited dealer networks and aftersales support.

Paul Burgess, CEO of Startline Motor Finance, said the findings reflect the significant changes taking place across the automotive sector.

“There has been a huge amount of disruption in the new car market during the last couple of years with the arrival of new entrants, mostly from China, achieving a substantial market share very quickly,” he said.

“We wanted to take a look at whether this openness to new brands was also true in the used sector and dealers agree that there has been an erosion in the importance of buying a used car from an established brand.

“It appears that if consumers perceive that factors such as price and value are present, they are more than happy to buy from brands that have very short track records in the UK. This indicates the future prospects for new entrants are considerable.”

The findings suggest that the growing presence of Chinese manufacturers and other emerging brands in the new car market is beginning to influence buying patterns in the used sector, where affordability pressures continue to shape consumer decision-making.

The Startline Used Car Tracker is compiled monthly by APD Global Research and this month surveyed 317 consumers and 70 dealers. The study is designed to provide regular insight into trends affecting the UK used car market.