What Factors Propelled The Growth Of The Used Cars Market In The Past?
The used cars market has seen considerable growth due to a variety of factors.
• The pre-owned car industry has witnessed considerable expansion in the past years. The market size, which is estimated to be around $1385.48 billion in 2024, is expected to increase to $1464.84 billion by 2025, with a compound annual growth rate (CAGR) of 5.7%.
Factors contributing to this surge during the historic period include a lack of new cars, rapid devaluation of new vehicles, enhanced car lifespan, growth in the second-hand car market, and a rise in customer price consciousness.
What Is The Projected Growth And Market Size For The Used Cars Sector?
The used cars market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated robust expansion in the used cars market is expected to propel its worth to $1954.08 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 7.5%.
Factors contributing to this growth during the predicted period include an increasing affinity towards second-hand electric vehicles, digitization of the car purchase process, a scarcity of fresh car stock, and heightened emphasis on eco-friendly transport. Key trends likely to emerge during this period incorporate online marketplaces for used cars, programmes for certified pre-owned vehicles, subscription services for used cars, advanced vehicle history reports, and the use of artificial intelligence for pricing and valuation.
What Factors Are Driving Growth In The Used Cars Market?
Global growth in the used car market is massively influenced by the rise of online platforms catering to used car sales. These platforms offer the convenience and necessary information crucial for buying and selling used cars. To multiply their used car sales, key players are resorting to digital expansion of their businesses. For example, based on the UK car market statistics released by We Buy Any Car Ltd., a UK-oriented online platform for car purchasing, the UK experienced the sale of 1,963,395 used cars in the second quarter of 2024 (April to June). This represents a 7.2% increase year-over-year when compared to the equivalent timeframe in 2023. Therefore, the growth of the used car market globally is significantly propelled by the rising prominence of online platforms designed for used car sales.
What Are The Main Segments Of The Global Used Cars Market?
The used cars market covered in this report is segmented –
1) By Vehicle Type: Hatchback, Sedan, SUV
2) By Fuel Type: Petrol, Diesel, Hybrid Or Electric
3) By Sales Channel: Peer-To-Peer, Franchised Dealers, Independent Dealers
Subsegments:
1) By Hatchback: Compact Hatchbacks, Subcompact Hatchbacks, Performance Hatchbacks
2) By Sedan: Compact Sedans, Mid-Size Sedans, Full-Size Sedans
3) By SUV: Compact SUVs, Mid-Size SUVs, Full-Size SUVs, Crossover SUVs
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What Emerging Trends Are Influencing The Growth Of The Used Cars Market?
A significant trend emerging in the used cars market is the growing investment. Key players in this market are directing their resources towards business expansion and firming their market stance. As an example, Kia India, an automobile company based in India, launched 'Kia CPO', a Pre-Owned Car Business in November 2022. This move is motivated by the company's objective to offer its customers an exclusive platform through the Kia CPO outlets, where they can sell, purchase or exchange second-hand cars. This arrangement will be supported by ownership transfer facilities and tailor-made financing options.
Who Are the Key Players in the Used Cars Market?
Major companies operating in the used cars market include:
• Hendrick Automotive Group
• Group 1 Automotive Inc.
• Cox Automotive Inc.
• Asbury Automotive Group Inc.
• CarMax Business Services LLC
• AutoNation Inc.
• Cars24 Services Private Limited
• Carvana Co.
• Lithia Motors Inc.
• Mahindra First Choice Wheels Ltd.
• TrueCar Inc.
• Vroom Inc.
• Shift Technologies Inc.
• CarGurus Inc.
• Penske Automotive Group Inc.
• Sonic Automotive Inc.
• CarHop Auto Sales and Finance
• Hertz Global Holdings Inc.
• Enterprise Holdings Inc.
• Avis Budget Group Inc.
• Budget Car Sales
• Thrifty Car Sales
• Off Lease Only
• EchoPark Automotive Inc.
• CarSense
• OffLeaseOnly. com
• DriveTime Automotive Group Inc.
• CarsDirect. com LLC
• KBB com LLC
• Autolist Inc.
• Cars com Inc.
• Autotempest Inc.
What Is The Most Dominant Region In The Used Cars Market?
Asia-Pacific was the largest region in the used cars market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the used cars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
