The Global Used Cars Market was worth US$ 1,655.16 billion in 2022 and is anticipated to reach a valuation of US$ 2,685.80 billion by 2028 and is predicted to register a CAGR of 8.44% during 2023-2028.
Market Overview:
A used car is a vehicle that has been previously owned and is available for resale. Used cars are sold through a variety of venues, including franchise and independent car dealers, rental car companies, auctions, private party sales, and leasing offices. Due to the high expense of vehicles and personal car upkeep, millennials have a lower rate of car ownership. Furthermore, millennials prefer to save money on cars and hence prefer to travel in second-hand vehicles. Furthermore, many people are unable to purchase new cars due to their high cost, boosting the demand for old cars. This also allows industry participants to make various investments in order to establish their dealership network in the market.
Market Drivers:
The market has grown significantly in recent years, because of the pricing competition among new players, which has been a bright point within the used cars market. Customers' inability to buy new cars is every one of the factors driving the rise in used car sales, which is bolstered by industry participants' efforts to make their dealership networks within the market.
Furthermore, online sales have emerged as a significant industry growth component. Auto marketplace websites have played a critical role in providing consumers with one-click access. a mix of those factors resulted in a very large increase in demand for used cars. Affordability, the provision of used cars, the rise in the need for private mobility, and also the advent of multiple internet companies to rearrange the market have all contributed to the sector's expansion.
The emergence of hybrid and electric cars, additionally as technological breakthroughs like the internet, have shifted the buyer's position within the market. Furthermore, consumers are now attentive to the vehicle's residual worth, quality finance charges, availability, the worth paid, and, in some cases, the ratio earned by the vendor in a very closing transaction. This understanding has altered the dynamics and allowed them to use customer insight to their advantage. As a result, buyers are increasingly curious about purchasing second-hand vehicles. Transparency and symmetry of knowledge among customers and buyers, the increase of the net sales channel, certified used vehicle programs, and also the strong position of franchise dealers all play important roles in developing the used cars market.
Market Restraints:
Financial discrepancies are projected to stymie the purchase of new vehicles, forcing commuters to settle for second-hand cars due to budget limits. Furthermore, in this pandemic moment, virtual reality, online, or digitally generated sales leads buy new autos. However, the global market's expansion is hampered by unstructured used car transactions and a lack of regularisation.
Market Segmentation:
Electric Vehicles are expected to have rapid growth in the Global Used Cars Market During the Forecast Period. Used electric vehicle pricing has remained affordable for consumers in recent years, and this has been a major driving force behind electric vehicle sales. Used electric vehicles have been cheaper than used hybrid vehicles in recent years, according to price analyses. In the luxury car segment, electric vehicle characteristics such as technology-driven performance provide a status symbol and encourage sustainability, resulting in a considerable volume of demand for used EVs.
Organized Vendors are expected to have the dominant share in the Global Used Cars Market During the Forecast Period. This can result to the market's growing number of franchised dealers. The entry of the latest competitors and innovative retail models into the industry has also been a significant driver of market expansion. On used vehicle sales, franchised dealers made extra money than independent dealers. Furthermore, the organized sellers profited from increased brand loyalty throughout all age groups. the world is assumed to own the biggest market share. The market is very fragmented, with many dealers around the world. However, in industrialized countries just like the u. s., Germany, and also the UK, big dealers like CarMax Business Services, LLC and Asbury Automotive Group control over half the market volume.
Petrol is expected to have the dominant share in the Global Used Cars Market During the Forecast Period. This is due to the government's prohibition on the acquisition of second-hand diesel cars, which has reduced the use of diesel vehicles. Emission rules for positive ignition and compression ignition (diesel) vehicles have contributed to the decline in diesel vehicle sales. In comparison to diesel-powered passenger cars, the pollution standard for gasoline-powered vehicles is less rigorous. Furthermore, consumers were drawn to petrol cars with refined engines, good fuel efficiency, and high top-end performance. In addition, rising inventories for gasoline-powered SUVs have become one of the petrol segment's driving forces.
Online is expected to have rapid growth in the Global Used Cars Market During the Forecast Period. The market has become more competitive as online platforms for vendors and buyers have developed. Moreover, vendors benefit from the web accessibility of data like costs, audits, and specs, which prompts colossal development.
Market Regional Analysis:
The Global Used Cars Market Report includes the segmentation of regions:
Asia-Pacific is expected to have the dominant share in the Global Used Cars Market During the Forecast Period. China has grown its market presence in the Asia Pacific area, thanks to an increase in the number of organized companies offering used cars trading services. Mobile-based applications, a virtual online showroom, cloud services for lead management systems, tracking sales performance, and digital marketing support are just a few of the modern technology-enabled solutions offered by some Indian car dealers. Furthermore, the Indian used vehicle industry's level of development provides tremendous prospects for the consumer base. Indonesia, Malaysia, Indonesia, South Korea, and other growing countries in the region have shown tremendous market potential.
Market Key Players:
Market Key Developments:
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