The latest data from the OLX Data Hub showed that fathers belonging to the Gen Y are the biggest market for secondhand cars. With the automotive industry doing well in the country, many car companies are now able to offer down payments for brand new vehicles that cost as low as a high-end smartphone. While investing in a shiny new car seems lucrative, financial advisers have labeled cars as fast-depreciating assets. In fact, as soon as they roll out of the showroom, their value immediately decreases.
Despite the irresistible offers from local dealers on brand-new, off-the-showroom-floor vehicles, OLX statistics show that the secondhand car market remains robust. Many buyers still opt for a preloved set of wheels. In fact, used vehicles are often enticing propositions for most buyers who just want to own an affordable ride that will get them from point A to point B.
In 2016, more than 630,000 secondhand vehicles were listed as for sale on the online classifieds platform—12% more than in 2015. Who exactly are in the market for second-hand vehicles? Turns out, it’s the young fathers segment.
Of the 74% of male buyers on OLX, 81% are married and belong to the 30 to 39 age demographic. Most of them are employed, working at private companies, government agencies, or are entrepreneurs.
As for what they’re looking for, numbers from the OLX Data Hub reveal that Japanese cars remain the top choice as they dominated the Top 5. This suggests that car buyers trust Japanese rides and view them as reliable.
Other statistics from the OLX Data Hub on used cars also show that the demand isn’t going down soon.
The OLX Secondhand Car Buyer:
8 out of 10 Surveyed are looking for secondhand cars
- 74 % – Percentage of Male Car buyers on OLX
- 26 % Percentage of Female Car Buyers on OLX
- 50% of the market are first-time car buyers.
Top 3 in terms of the age range of secondhand car buyers:
- 30 to 39-years old – 35 %
- 22 to 29-years old – 22 %
- 40 to 49 years old – 22 %
Top 3 Occupations:
- Private employee
- Business Owner
- Government Employee
Average price buyers are willing to spend on a car listed on OLX: Php 330,000
Top 5 Searched Brands
Top 5 Make and Models Searched
Practicality as the Main Criterion
3 out of the Top 5 searched vehicles belong to the utility vehicle category which shows that young fathers, who make up most of the market for used cars, are practical. They hunt for the people mover, multi-purpose type of steeds—capable of being a daily driver while hauling the entire family for road trips on weekends.
From the top 5 searched vehicle manufacturers, when it came to Nissan and Isuzu buyers were not particular with models. Among Japanese brands, Toyota is top of mind. Just as they are popular brand new, secondhand Vios, Innova, and Fortuner are also sought after. The distinction of being the most searched make and model however, belongs to the Honda Civic—suggesting young dads still aspire for a daily driver with a sporty vibe.
Online classifieds platforms also prove to be an effective way to sell preloved vehicles. Those looking to buy a new car, especially those who are starting a family, would benefit from selling their current rides instead of trading it in as buyers who find what they want online are also firm in purchasing.
Good time to sell secondhand cars on OLX
According to the OLX Data Hub, cars posted on OLX immediately get at least 3 inquiries on the week it is listed. If the vehicle is among the Top 5 searched, it’s highly likely that it’ll get an inquiry or even be sold within 1 to 2 hours after listing.
“With listings looking to breach the 1 million mark this year for both brand new and preloved cars, practical young dads looking to buy vehicles can find options within our platform,” says Raffy Montemayor, General Manager of OLX. “Those looking to sell their preloved vehicles especially Honda Civic, Toyota Fortuner, Innova, and Vios owners will not have a hard time finding serious buyers on our site or app.”
While there is a market, buying a used ride is still tricky. OLX has security measures in place to ensure those listing have legitimate identities. But buyers still have to have to practice due diligence by checking if there are any red flags on the car by getting its plate number double-checked through the LTO. You may read more tips on buying secondhand cars here.
Also, when meeting up with a seller, ask for maintenance records of the car. You will be driving it on a lot of trips with your family after all. A seller peddling a well-maintained vehicle should be able to share details of latest maintenance checks, replaced parts, and will keep records. If they don’t, that should alert you already.
Whether you’re buying or selling a car, OLX has you covered. Download the app today! It’s available on both iPhone and Android. With OLX, you can buy your next dream ride or sell your car to get an upgrade today!