Looking at the Top 10 Companies in the Used Car Market

• Published Date: May 16, 2024

Rising Demand for Used Cars and Car Subscription Services

The sales of cars over the years have displayed a progressive growth in footfalls at showrooms, simultaneously, there has been an advance in the sales of used cars as well. This is understandable as not everyone can afford to own a brand-new car.

The demand for used cars has surged significantly over the years. This can be attributed to the increasing internet penetration and the accessibility of information on online platforms; coupled with the surging need for off-lease vehicles from auto dealers, leasing offices, or franchises.

Moreover, with the increasing acceptance of car subscription services, the used car industry will reach a value of USD 2,980.2 billion in 2030.

In this blog, we’ll be looking at the top 10 companies in the used car industry.

CarMax Inc.

Establishment: 1993

Headquarters: U.S.

Website: www.carmax.com

CarMax Inc. offers a wide collection of quality used vehicles as well as associated products & services at competitive, no-haggle values via a customer-friendly sales procedure. 

During the fiscal year ended February 2023, the company sold 807,823 used vehicles at retail and reported used vehicle gross profit of USD 1,848.2 million. Furthermore, as of February 2023, the company operated 240 used car stores in 109 U.S. television markets. 

TrueCar Inc.

Establishment: 2005

Headquarters: U.S.

Website: www.truecar.com

TrueCar is a major automotive digital marketplace that enables auto sellers and buyers to connect to its nationwide network of Certified Dealers. With access to an extensive inventory offered by certified dealers, the company is aiming to build the industry's most efficient and personalized auto shopping experience by bringing more of the procedure online.

Customers can find a collection of vehicle discovery tools, market context, or price ratings on used, new, or certified pre-owned vehicles. In Q4 2023, the company reported a YoY revenue growth of 13%, decreased net loss of USD 1.9 million from USD 18.1 million in Q4 2022, and attained adjusted EBITDA profitability of USD 2.1 million.

Alibaba Group Holding Limited (Alibaba.com) 

Establishment: 1999

Headquarters: China

Website: www.alibabagroup.com

Alibaba is a Chinese multinational technology company specializing in retail, e-commerce, technology, and the internet. The company offers business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) sales services throughout Chinese and global marketplaces, along with digital media & entertainment, local consumer, cloud computing, and logistics services. 

As of 31st March 2023, the company reported revenue of USD 10,558 million. The company offers a variety of used cars, including American, European, and Japanese cars, of different brands. Moreover, the company also offers various options such as affordable, high-quality, functional, and even wholesale used cars.

eBay Inc.

Establishment: 1995

Headquarters: U.S.

Website: www.ebayinc.com

eBay Inc. is an American multinational e-commerce business that brokers consumer-to-consumer and retail sales via online marketplaces in over 190 markets globally. The company offers a wide selection of used or new, large or small cars for sale. 

In 2023, eBay Inc. reported a revenue of USD 10.1 billion. Moreover, the company has 132 million active buyers all across the world.

Asbury Automotive Group Inc.

Establishment: 1995

Headquarters: U.S.

Website: www.asburyauto.com

Asbury Automotive Group is a major automotive retailer in the U.S., with 158 dealerships and 37 collision centers. The company was ranked No. 360 on the 2022 Fortune 500 list. Asbury Automotive Group reported revenue of USD 14.8 billion in 2023.

The company offers a wide range of automotive products & services, comprising new & used vehicles; parts & services, which comprises maintenance or repair services, finance & insurance products, and replacement parts & collision repair services.

Hendrick Automotive Group

Establishment: 1976

Headquarters: U.S.

Website: www.hendrickcars.com

Hendrick Automotive Group is a privately held automotive retail business, representing 130 franchises as well as 25 manufacturer nameplates from the Carolinas to California. Moreover, Hendrick Automotive Group employs over 10,000 people in its 21 collision centers, 4 accessories distributor installers, and 93 dealership locations in 13 states.

Furthermore, in 2021, the company generated more than USD 11 billion in revenue after selling over 205,000 vehicles and servicing 2.3 million trucks and cars.

AutoNation Inc.

Establishment: 1991

Headquarters: U.S.

Website: www.autonation.com

AutoNation is one of the major car dealerships in the U.S. The company offers an extensive option of used cars, electric vehicles, SUV vehicles, and trucks. The company's 4th quarter 2023 revenue was USD 6.8 billion, which is a growth of 1% compared to the same period last year.

Moreover, the company also reported a revenue of USD 1.9 billion for used vehicles, with 65,151 retail unit sales, in the 4th quarter of 2023.

Group 1 Automotive Inc.

Establishment: 1997

Headquarters: U.S.

Website: www.group1corp.com

Group 1 Automotive Inc. is a global Fortune 300 automotive retailer with automotive dealerships as well as collision centers in the U.K. and the U.S. The company sells used & new cars and light trucks, offers maintenance & repair services, sells automobile parts, and arranges financial services. Group 1 Automotive Inc. has 262 franchises and 5,475 service bays, and the company reported revenue of USD 17.9 billion in 2023.

Lithia Motor Inc.

Establishment: 1946

Headquarters: U.S.

Website: www.lithia.com

Lithia Motors Inc. is an automotive dealership group, offering new and used cars, auto repair and part centers, and more. As of October 2023, the company operates 291 stores in the U.S., 40 stores in the U.K., and 14 stores in Canada. Moreover, Lithia Motors Inc. reported over USD 31 billion in revenue in 2023.

Cox Automotive Inc.

Establishment: 1991

Headquarters: U.S.

Website: www.coxautoinc.com

Cox Automotive is a major automotive services & technology provider. The company tailors solutions for auto manufacturers, car shoppers, dealers, fleets, and lenders. Cox Automotive has over 29,000 employees on 5 continents and a portfolio of major brands that comprise Kelley Blue Book, Autotrader, Manheim, Dealertrack, vAuto, NextGear Capital, FleetNet America, and CentralDispatch.