April 18, 2024
Used Car Market

The Global Used Car Market Is Trends Towards Digitalization By 2024

The global used car market deals in trading pre-owned or previously registered vehicles. Used vehicles provide a cost-effective alternative to new vehicles for consumers looking for transportation at affordable prices. The market comprises various products including sedans, hatchbacks, SUVs and luxury vehicles that were initially registered by their first owners. The used car segment provides opportunities for buyers to own a vehicle at almost half the price of new ones.

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 operating in the Used Car Market Demand  are 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, Others. Growing demand for affordable vehicle options and the increasing preference for online shopping have boosted the used car market. The market is also expanding globally due to the rising private vehicle ownership in developing regions.

Growing consumer demand for affordable mobility options is fueling the used car market. People are increasingly opting for pre-owned vehicles which provide significant savings over new vehicles. Various online listing and transaction platforms have made the discovery and purchase of used cars convenient. The market is also growing due to the availability of various financing options and warranty programs provided by dealers.

Global expansion of the used car industry is supported by increasing private vehicle ownership in developing markets. As disposable incomes rise, more people can afford vehicles which is raising demand. Countries like India, Brazil, Indonesia and others present vast opportunities for used car sales. Many international brands are strengthening their presence to tap demands in emerging markets.

Market key trends

Digitalization is a key trend influencing the used car market. Various players are digitizing operations to improve customer experience from online research to online payment and doorstep delivery. Virtual/online marketplaces are gaining popularity as they make used car discovery and transactions convenient. Advances in AI and IoT are also enabling better vehicle condition inspection and forecasts to upgrade sales and after-sales support. This is driving the used car industry towards online and customized solutions.

Porter’s Analysis

Threat of new entrants: Used cars require huge capital investment to setup dealerships/online platforms and brand recognition amongst customers is difficult.

Bargaining power of buyers: Individual buyers have low bargaining power due to limited choice but businesses/large volume buyers have substantial bargaining power and can negotiate good prices.

Bargaining power of suppliers: Suppliers of used cars like individual sellers, rental fleets and leased companies have moderate power as they have option to sell directly through online platforms or to multiple dealers.

Threat of new substitutes: Alternatives like public transportation, ride-hailing and increased use of shared mobility pose little threat currently.

Competitive rivalry: Intense competition exists amongst existing dealers and online players/aggregators.

Geographical Regions

The used car market in the United States is the largest globally in terms of value, estimated at around US$ 600 Bn in 2024 led by large circulating vehicle population and willingness of Americans to own cars.

The used car market in China is expected to grow at the fastest rate during the forecast period driven by rising middle-class population, increased urbanization, growing financing options and development of organized retail channels.

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