Global Used Vehicle Market Overview

Global Used Vehicle Market size is expected to grow from USD 1147.89 Million in 2023 to USD 2409.95 Million by 2032, at a CAGR of 8.59% during the forecast period (2024-2032)

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" used cars, and extended service plans or warranties. The growth of the Internet has fueled the availability of information on the prices of used cars. This information was once only available in trade publications that dealers had access to. There are now numerous sources, such as online appraisal tools and internet classified ads, for used car pricing. Multiple sources of used car pricing mean that listed values from different sources may differ. Each pricing guide receives data from different sources and makes different judgments about that data. The pricing of used cars can be affected by geography. Convertibles, for example, are more popular in hotter climes than in colder ones. Pickup trucks, on the other hand, maybe in more demand in rural areas than in metropolitan areas. The general condition of the car has a significant bearing on the price. Appearances, car history, mechanical condition, and mileage are used to determine the condition. The way a car's condition is assessed has a lot of subjectivity. Furthermore, due to disparities in income levels, car depreciation levels range significantly across exporting and importing countries. In high-income countries, the value of a car depreciates quicker than in low-income countries. Old car merchants in high-income nations may thus sell their used automobiles in low-income countries for a greater price. This is the reason for the incentive to export secondhand cars. Japan, the EU, the United States, and Canada are the top automotive exporting countries (both new and used vehicles).

Market Dynamics And Factors For Used Vehicle Market

Drivers:

Personal Mobility is in High Demand

In practically all cities across the country, population growth has outpaced public transportation, resulting in a decline in reliance on public transportation. The susceptibility of such mediums was also demonstrated by the pandemic. People who formerly relied on public and private transportation, carpooling, or shared services have moved their attention to personal mobility. People are focused more on social distance standards in metro and even non-metro cities, with health safety being the primary concern. Eventually, this will lead to an increase in the demand for personal automobiles. People from all walks of life, even those from lower socioeconomic levels, are inclined to save their discretionary money in the event of future uncertainty. As a result, personal mobility is likely to grow as a result of affordability.

The Improvement of Online Infrastructure Has a Positive Impact on The Used Vehicle Market

The used automobile market is becoming more structured as smartphone and internet use rises in emerging nations, particularly in Asia-Pacific. Used vehicle dealers are leveraging digitalization to make market offers more appealing. More clients are buying used automobiles because of features like an extensive quantity of photographs and videos on the web platform and an easy online rapid lending service.

Restraints:

Regularization is Lacking

Because the dealer cannot obtain automobiles to serve their clients until the owner does not sell them on the market, the used vehicle dealer is reliant on the seller. If new car sales fall, the market will become short of supplies after a while. Furthermore, the epidemic has impacted negatively on the automotive industry. Consumers are predicted to choose private transportation in the aftermath of the outbreak. As a result, the used vehicle industry is entirely reliant on replacement buyers, vehicle owners selling their vehicles, and used car imports, which generates a great deal of uncertainty in terms of supply to meet market demand. As a result, these issues are projected to stifle the used vehicle market's growth shortly.

Opportunities:

Technology advancements such as the internet's expansion, the usage of e-commerce sites/applications to drive company demand, and the advent of hybrid and electric vehicles have transformed the buyer's position in the market. Consumers are getting more aware of the car, its residual value, third-party profit margin, and other factors thanks to web technology. Furthermore, rising urbanization increased internet access, and technological advancements in the telecom industry have resulted in a vastly improved information flow for individuals. Used vehicle owners are increasingly relying on these variables to promote their automobiles and provide information about them. This internet platform has streamlined the sales procedure and made it easier for more people to sell and acquire automobiles. The supply side of the used vehicle market has more weight than the demand side, and transparency via information has transformed the dynamics and allowed them to use consumer insight to their benefit, therefore growing the demand for a used vehicle in the future.

Market Segmentation

Segmentation Analysis of Used Vehicle Market:

Based on the vehicle type, the passenger vehicle segment is expected to dominate the used vehicle market over the forecast period. The private vehicle has altered contemporary civilization for almost a century by enabling independence and mobility. Because of the ever-increasing distances between home, work, educational institutions, shopping, and recreational facilities, mobility is becoming increasingly crucial. People who live in cities may use taxis, carsharing, or on-demand services instead of or in addition to their vehicles. Home care and medical aid, as well as a variety of other emergency services, are made possible by passenger automobile travel.

Based on the vehicle age, the 0-5 years segment is expected to hold the maximum used vehicle market share over the forecast period.  The optimal age to buy a used automobile is very subjective, and it all depends on the customer's preferences. Buying a used automobile that is less than five years old saves a lot of money over buying a new car and gives you an almost new car. A five-year-old car, on the other hand, delivers even more spectacular savings and is unlikely to cost much more in yearly maintenance provided the client is ready to forego appearance and amenities.

Based on the fuel type, the petrol vehicle segment is anticipated to register the maximum used vehicle market share over the forecast period. Petrol automobiles are often less expensive to buy and maintain since parts and mechanics are simpler to come by for them than for hybrid or electric vehicles. Petrol cars also perform better in terms of speed, acceleration, and agility (a hybrid vehicle's battery, for example, becomes dead weight when it runs out).

Based on the propulsion, the ICE segment is projected to hold the highest used vehicle market share throughout the forecast period. Due to the tightening of laws on diesel vehicles in the particular region, the demand for used petrol automobiles is increasing in the market. Furthermore, as compared to electric vehicles, these vehicles require less maintenance. Internal combustion engines also have the benefit of being liquids, which are easy to carry, generally accessible, and can be refueled rapidly.

Based on the vendor type, the organized vendor segment is expected to hold the maximum used vehicle market share over the forecast period. In the next years, this segment is expected to account for more than two-thirds of the market. The market is highly fragmented, with many dealers across the world. The market is seeing an increase in the number of franchised dealers. The introduction of new companies and innovative retail formats into the industry also contributed to the sector's expansion. Franchised dealers in the United States generated larger gross earnings on used car sales than independent dealers, according to the NADA. Furthermore, the organized sellers profited from increased brand loyalty among consumers of all ages.

Based on the sales channels, offline sales accounted for the largest volume share over the forecast period. This is due to the consumer's preference for traditional purchasing methods. The internet sales channel sector, on the other hand, is likely to rise significantly over time. The market has become more competitive due to the introduction of internet tools for both vendors and customers. Furthermore, dealers have seen tremendous development as a result of the internet availability of information such as pricing, reviews, specs, and other items.

Regional Analysis of Used Vehicle Market:

Due to the region's growing automotive industry and the region's strong presence of economic inequalities, which has created two distinct consumer demographics, one buying new cars and the other buying used cars, Asia Pacific is expected to dominate the global used vehicle market over the forecast period. SUVs and other 4WD vehicles are among the major income sources for the used vehicle industry, therefore the expanding production of SUVs by regional automotive manufacturers in the Asia Pacific is projected to be a significant driver for the used vehicle market in the Asia Pacific. The growing usage of the Internet in the Asia Pacific has benefited the used car industry, and it is expected to continue to be one of the market's primary drivers during the projected period.

Because of the existence of multiple used vehicle market competitors and the rising demand for a used vehicle in the region, North America is the second biggest regional market for used vehicles and is likely to hold a major position.

The used vehicle market is predicted to grow as disposable income rises, the urban population grows, used vehicle sales increase online, the overall population grows, and the benefits of a used vehicle over a new car grow, among other factors. Cost-effective, better for the environment, readily upgradeable, slower depreciation, reduced insurance costs, easier affordability, and no registration fees are just a few of the advantages of buying a used vehicle. Growing economies in Latin America and the Middle East might also play a key part in the global used vehicle market's growth during the projected period, as customers in these countries have turned to used automobiles rather than new vehicles due to a lack of discretionary cash.

Players Covered in Used Vehicle Market are:

• Alibaba Group
• Vroom
• OLX
• Cars24
• Autotrader (Cox Automotive)
• TrueCar
• Truevalue
• First choice
• Maruti Suzuki India Ltd.
• PenskeCars (Penske Automotive Group)
• Quikr
• Mahindra First Choice
• Group 1 Automotive Inc.
• Asbury Automotive Group
• Hendrick Automotive Group
• AutoNation Inc.
• LITHIA Motor Inc.
• eBay
• CarMax Business Services LLC.
• Scout24 AG
• Cox Automotive
• Sun Toyota and other major players.

Key Industry Developments in Used Vehicle Market

• In January 2024, Vroom, Inc. a leading ecommerce platform for buying and selling used vehicles, announced that it is discontinuing its ecommerce operations and winding down its used vehicle dealership business to preserve liquidity and enable the Company to maximize stakeholder value through its remaining businesses.
• In March 2024, CARS24, introduced Autopilot, a unique, transformative driver-on-demand service. This latest innovation underscores the brand's dedication to becoming an all-encompassing hub for automotive solutions, ensuring unmatched convenience and comfort for car owners.