Used Cars Market Size

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.

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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.