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Used Cars Market Size - By Vehicle Type (Hatchback, Sedan, SUV), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Peer-to-peer, Franchised Dealers, Independent Dealers), By End-use (Personal, Commercial) & Forecast 2023 - 2032

  • Report ID: GMI5019
  • Published Date: Nov 2023
  • Report Format: PDF

Used Cars Market Size

Used Cars Market was valued at USD 1.5 trillion in 2022 and is anticipated to observe more than 5.2% CAGR from 2023 to 2032. The affordability factor is act as primary growth drivers. Used cars are generally less expensive than new ones, making them an attractive option for budget-conscious consumers. For instance, from August 2023 to October 2023, Spinny, the used car marketplace, experienced an increase in the proportion of first-time car buyers in India, rising to 63%, as opposed to the 57% recorded in Q2 2023.
 

Used Cars Market

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As new cars depreciate rapidly in their first few years, many buyers opt for used cars that have already undergone the steepest part of their depreciation curve, contributing to market growth. Driven by these benefits, consumers, especially in developing economies, are transitioning toward used cars, carving a healthy growth trajectory for the used cars sale.
 

The used cars market can be constrained by disruptions in the automotive supply chain, affecting the availability of pre-owned vehicles. Factors such as semiconductor shortages, which have impacted new car production, can also limit the number of trade-ins and reduce the overall supply of used cars in the market. These shortages can drive up prices and limit choices for consumers in the used car.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the market of used cars, causing fluctuations in demand and supply. Lockdowns and economic uncertainties led to a decline in consumer spending, impacting new car sales. Consequently, the demand for used cars surged as buyers sought more cost-effective options. Supply chain disruptions and reduced new car production also contributed to increased prices in for used cars. The pandemic prompted a shift in consumer preferences, emphasizing affordability and value, driving the resilience and growth of the used car sector.
 

Used Cars Market Trends

The used cars industry is increasingly leveraging online platforms for buying and selling transactions. Digital platforms offer a convenient and transparent way for consumers to browse inventory, compare prices, and complete transactions. The trend towards online sales is likely to continue, with more dealerships and online marketplaces enhancing their digital presence and providing features such as virtual inspections and online financing options.
 

Used Cars Market Analysis

Global Used Cars Market Size, By Vehicle Type, 2021-2032, (USD Trillion)

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Based on vehicle type, the SUV segment held major market share in 2022. The burgeoning demand for used SUVs is propelled by a confluence of factors reflecting contemporary consumer preferences. SUVs, renowned for their versatility and spacious interiors, cater to the evolving needs of families seeking both comfort and utility. The increased focus on safety features and advanced technologies in newer models makes the used SUV market an attractive option for budget-conscious buyers. Additionally, the robust resale value of SUVs contributes to their popularity, ensuring that consumers view them as sound long-term investments, fostering sustained demand in the flourishing used car sector.
 

Global Used Cars Market Share, By Fuel Type, 2022

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Based on fuel type, the gasoline mounted segment captured more than 64% market share in 2022. Gasoline-fueled used cars remain in high demand for several compelling reasons. The extensive infrastructure supporting gasoline vehicles, including widespread fueling stations, contributes to their practicality. The lower upfront cost compared to alternative fuel options makes gasoline cars economically appealing to a broad spectrum of buyers. Moreover, the well-established technology and familiarity of gasoline engines reassure consumers about maintenance and repair accessibility. As a result, the dependable performance, affordability, and infrastructure support collectively drive the sustained popularity and demand for used gasoline-fueled cars in the automotive market.
 

Europe Used Cars Market Size, 2021-2032 (USD Billion)

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Europe led the global used cars market with 35% revenue share in 2022, due to several interconnected factors. Economic prudence drives consumers to seek cost-effective alternatives, and used cars offer a more affordable option than their new counterparts. Stringent regulations promoting sustainability encourage environmentally conscious choices, leading buyers to opt for pre-owned vehicles. Moreover, the European market benefits from a diverse and competitive range of used cars, fostering a dynamic marketplace. The prevalence of certified pre-owned programs and comprehensive vehicle history reports instills confidence in buyers, further propelling the flourishing used car business, where reliability, affordability, and sustainability converge to meet diverse consumer demands.
 

Used Cars Market Share

Major players operating in the used cars industry are:

  • Arnold Clark Automobiles Ltd.
  • Asbury Automotive Group Inc.
  • AutoNation Inc.
  • AutoScout24
  • Universal Motor Agencies
  • CarMax Inc.
  • Carvana
  • Cox Automotive Inc. (Autotrader)
  • Emil Frey AG
  • Group 1 Automotive Inc.
  • Inchcape Group
  • Lithia Motors Inc.
     

Companies in the used car market employ diverse strategies to fortify their presence. This includes embracing online platforms like Carvana and AutoScout24, implementing certified pre-owned programs, enhancing customer trust with transparent vehicle histories, and expanding dealership networks for wider market reach.
 

Used Cars Industry News

  • In May 2023, CarMax, the omnichannel used-car retailer, announced amplifying its customer outreach initiatives and elevating the overall customer experience by integrating the language models and Azure OpenAI that power ChatGPT.
     

This market research report on used cars includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipment (Units) from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

  • Hatchback
  • Sedan
  • SUV
  • Others

Market, By Fuel Type

  • Gasoline
  • Diesel
  • Hybrid/Electric
  • Others

Market, By Sales Channel

  • Peer-to-peer
  • Franchised dealers
  • Independent dealers

Market, By End-Use

  • Personal
  • Commercial

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea 
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of used cars was worth over USD 1.5 trillion in 2022 and is expected to register 5.2% CAGR through 2032, due to rising preference for attractive options amongst budget-conscious consumers worldwide.

The gasoline fuel type segment held over 64% share of the used cars market in 2022 and is expected to register appreciable CAGR from 2023 to 2032, owing to the extensive infrastructure support for gasoline vehicles.

Europe held over 35% share of the used cars industry in 2022 and is expected to register commendable CAGR from 2023 to 2032, due to the growing number of consumers seeking cost-friendly alternatives in the region.

Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., AutoNation Inc., AutoScout24, Universal Motor Agencies, CarMax Inc., Carvana, Cox Automotive Inc. (Autotrader), and Emil Frey AG are some of the major used cars companies worldwide.

Used Cars Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 494
  • Countries covered: 18
  • Pages: 250
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