Most drivers choose a car based on price, make, model and even colour. But new figures show that the economy is playing an increasingly important role in our choice of car.
Financial uncertainty and the high cost of fuel have increased the demand for smaller, more economical used cars less than three years old.
But a low number of new car sales since the credit crunch has resulted in fewer cars under three years old filtering through.
Which, in turn, is making older used cars an attractive option for many drivers.
In fact, today’s used car market is dominated by vehicles aged 10 years and over.
Older used cars cheaper
New figures from motoring magazine Auto Trader show that prices for cars up to three years old have risen by 6 per cent in the last two years.
Yet in the same period, much older used cars dropped in price by the same percentage.
Tim Peake, strategy director at Auto Trader said: "The data shows that people are holding on to their cars longer and there is less trading in for newer models.
"Consumer demand has been weak since 2007 and the impact of this on new car registrations is now feeding in to the secondhand market."
Are bangers better value?
With newer used cars becoming more expensive, and brand new cars out of many drivers’ price range, older used vehicles could see a surge in sales.
In the Used Car Market report 2011 by British Car Auctions (BCA), 35 per cent of used car owners polled cited "I couldn’t afford a new car" as the main reason for buying a used motor.
A fifth - 20 per cent - of respondents said used cars offered "better value for money", while 14 per cent said used cars suffer "lower depreciation" than newer cars.
Fuel costs
The BCA report also found that half of those polled believe rising fuel costs will force them to change to a more fuel-efficient car or alter their driving habits.
Car owners most affected by the escalating price of fuel are in the 17 to 24 age group and low-income motorists – two-thirds of whom say they must buy a more fuel-efficient car.
But, although older cars may be cheaper to buy and cheaper when it comes to buying car insurance, they tend to be less economic.
Older cars less efficient
Kieren Puffett, editor of car valuation specialists Parkers, outlines the case for buying new vehicles.
"The basic proposition of older cars cheaper than new cars has some basis in truth.
"New cars suffer from heavy depreciation in the first three years of their lives.
"However, older cars are less fuel efficient, generally cost more to tax and are more likely to go wrong so you will be landed with repair bills.”
Most popular used cars
Despite the changes in the used car market, the most commonly searched-for vehicles in 2011 remained unchanged.
The BMW 3 Series took top spot ahead of the Volkswagen Golf and Ford Focus.
The major climber is the Ford Fiesta, while the Fiat Punto has dropped out of the top 10, replaced by the Mercedes Benz C Class.
The biggest price drops among used vehicles were seen in large cars and premium convertibles due to lack of demand.
Prices rose, on average, for luxury saloons and 4X4 Land Rovers.
Auto Trader says this reflects demand for more sturdy vehicles as consumers look to avoid being caught out by snow and ice.
Outlook for 2012
The BCA says that demand for cheaper, older vehicles could begin to push prices up.
However, Auto Trader says that it’s likely that business and consumer confidence will remain subdued, which will pin back car sales in general.
Tim Peake of Auto Trader says: "The important thing for consumers, as always, is to do your research.
"There will be demand from the trade for good quality vehicles, so consider part-exchange deals, keep an eye on prices of both your own vehicle and your desired next purchase."
Read our guide on crucial things to check when buying a used car.
Buying a secondhand car? Watch our 30-second video guide on buying a used car to ensure you don't get a bad deal.
