Younger buyers driving the online used car market despite Cazoo collapse, reports iVendi

Research among younger buyers indicates that the used car market is increasingly shifting online, despite the recent collapse of Cazoo, according to iVendi.

Findings reveal that only 21% of buyers under 30 plan to purchase their next car at a dealership, compared to 23% of those aged 31-44 and 35% of those aged 45 and over.

The 'click and collect' method, where transactions are completed online and vehicles are picked up from the retailer, is the most popular choicev for 51% of respondents under 30, 47% of those aged 31-44, and 37% of those over 45.

Interestingly, preferences for fully digital purchases with home delivery, avoiding physical dealerships altogether, were consistent across all age groups, ranging from 27% to 28%.

This research comes from iVendi’s new white paper, which surveyed 1,000 recent car buyers about their attitudes toward online purchasing.

Darren Sinclair, CCO at iVendi, highlighted two key takeaways from the findings. First, there is a clear and rapidly growing preference for online over showroom purchases, with only one in five respondents under 30 wanting a showroom experience.

Secondly, online car buying is already a norm, even among the most conservative buyers aged 45 and over, with more than a quarter planning to buy their next car entirely online.

Sinclair noted the relevance of these findings in light of Cazoo's collapse, and warns that the market's readiness for online-only sales should not be misinterpreted by the business’s failure.

"The research, our dealer customer base, and the market all indicate a growing appetite for digital purchases," Sinclair said. "Cazoo's experience shows the challenges in meeting this demand, especially when online customer journeys are designed for idealised, friction-free consumers rather than real-world buyers with complex needs. For instance, 56% of people with part exchanges couldn’t complete the process online, causing over a quarter to abandon their purchase."

Sinclair added that solutions exist to overcome these roadblocks, and iVendi is working with many dealers to offer comprehensive online buying experiences for all consumers.

These insights are detailed in iVendi’s new white paper, “Driving Future Success: Five Key Trends in Online Motor Retail,” available for free download at ivendi.com/driving-future-success.