April 24, 2024
Used Car Market

Used Car Market Estimated to Witness Growth Due to Increasing Demand for Affordable Vehicle Options

Market Overview:

The used car market refers to the resale of previously owned vehicles. Used vehicles offer an affordable alternative to new cars, while still providing reliable transportation. Growing budgets constraints coupled with rising new car prices have increased consumer interest in the used car segment in recent years. The market caters to both individual buyers looking for private transportation as well as used car rental businesses. Additionally, service providers in the used car industry offer advantages like vehicle history reports, financing options, and warranty plans to create value for customers. The growing preference for personal mobility is expected to drive continued demand for used vehicles.

The global used car market is estimated to be valued at US$ 2.73 Tn in 2024 and is expected to exhibit a CAGR of 0.063% over the forecast period 2024 to 2031.

Key Takeaways:

Key players: Key players operating in the Used Car Market Growth include Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., AutoNation Inc., Autotrader, AutoScout24, Universal Motor Agencies, CarMax Inc., Carvana, Cox Automotive Inc. (Autotrader), Emil Frey AG, Group 1 Automotive Inc., Inchcape Group, Lithia Motors Inc., CarMax Business Service LLC, Asbury Automotive Group, AutoNation Inc., eBay Inc., Big Boy toyz, VROOM, and others.

Key opportunities: The growing demand for certified pre-owned vehicles and online used vehicle sales platforms present lucrative opportunities for players in the used car market.

Global expansion: Leading used car companies are expanding globally through strategic partnerships and acquisitions to capitalize on the large market potential across international markets. The growing penetration of online sales channels is also supporting the global reach of major used car retailers.

Market drivers: Increasing preference for personal mobility options and lack of reliable public transportation in many countries are expected to drive continuous demand for affordable used cars going forward. Additionally, the growing availability of vehicle financing options is supporting increased access to capital for purchase among consumers.

PEST Analysis

Political: Used car market is governed by regulations around inspection, emissions testing and safety standards set by transport authorities. Changes in fuel economy regulations can impact demand trends.

Economic: Customer spending power and ability to obtain auto financing impact sales. Used vehicles provide a relatively more affordable option compared to new cars.

Social: Younger generations showing greater preference for ride-sharing over private ownership. However, private vehicles still important for families and those in remote areas with less access to public transport.

Technological: Advancements like vehicle connectivity and self-driving capabilities being introduced first in new vehicles. Used cars lag in latest tech features but lower prices make them attractive for basic mobility needs.

The used car market in terms of value is most concentrated in the United States, China and Western Europe. In the US, states like California, Texas and Florida have large volumes of used vehicle sales and trade-ins due to their large populations and higher number of registered vehicles.

The fastest growing region for the used car market is expected to be Southeast Asia led by countries like Indonesia, Thailand and Vietnam. Rising incomes are enabling more people to afford personal mobility solutions through the used vehicle segment as an alternative to new cars or public transport.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it