The global used car market is predicted to reach $2,980.2 billion by 2030, growing at a CAGR of 6.10% during 2021–2030. This growth can be ascribed to a surge in demand for affordable vehicles, high costs of new cars, worries about affordability, a rise in demand for cars that are no longer under a lease, and subscription services offered by franchises, leasing offices, and auto dealers.
Automobile dealers and manufacturers now frequently consider used automobiles as a by-product, who had primarily concentrated on the new vehicle segment only. Also, there has been a high rise in the number of used automobile dealerships, due to industry competitiveness and the entry of new players. Additionally, the improved dependability and quality of used automobiles altered consumer behavior and boosted used passenger car sales. Therefore, investing in used automobiles has become one of the major necessities for market players, with constant rivalry, shrinking margins, and demanding customers.
Moreover, it is projected that the emergence of e-commerce and online technologies, a steady surge in organized/semi-organized sales in emerging nations, a rise in the global market for electric vehicles, and an increase in the demand for car-sharing services will all create lucrative opportunities for the expansion of the used car market.
The position of buyers in the industry has altered as a result of technological developments, high internet penetration, and the advent of hybrid and electric automobiles. In addition, buyers are now aware of a car's residual worth, quality finance fees, availability, and occasionally the profit margin a vendor makes when a sale is closed. With this information, they are able to alter the situation and benefit from consumer insights. As a result, people are now more likely to purchase second-hand cars as compared to new ones.
There has been a rise in people's disposable income in emerging economies like China and India. A significant portion of society that previously could not afford the convenience of having a car is now able to do so because of this development. The industry also fills the gap between people's wish to own a car and their financial capacity, giving it access to a whole new market segment that the new car industry cannot reasonably get into. Moreover, the acceptance of owning a used car in these countries has been rising, which offers favorable growth opportunities for industry players operating in these countries.
The European market is projected to grow at a significant CAGR, of around 5.9%, during the forecast period. This can be ascribed to the increasing online automobile sales, the growing recognition of the advantages of shared mobility along with rising demand for cab-hailing services, and the cheap pricing of used cars, in the region.
Some of the major players operating in the used car market are Alibaba.com, Asbury Automotive Group, AutoNation Inc., TrueCar Inc., CarMax Business Services LLC, Cox