Used Car Market is Estimated to Witness High Growth Owing to Rise in Online Car Buying and Remarketing
The global used car market is estimated to be valued at US$ 1.78 trillion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the used car market are Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., AutoNation Inc., Autotrader, AutoScout24, Universal Motor Agencies, CarMax Inc., Carvana, Cox Automotive Inc. (Autotrader), Emil Frey AG, Group 1 Automotive Inc., Inchcape Group, Lithia Motors Inc., CarMax Business Service LLC, Asbury Automotive Group, AutoNation Inc., eBay Inc., Big Boy toyz, VROOM, Others.
The increasing popularity of online Used Car Market Size marketplaces like Carvana, Vroom, and Autotrader is a major opportunity in the industry. These platforms provide national inventories, online financing options, and contactless purchasing experiences that have seen rising adoption in recent years. Technological advancements like AI-enabled vehicle inspections and digital vehicle history reports are also improving transparency and the online shopping experience.
Market Drivers
The growing preference for personal mobility solutions over public transport amid the pandemic is a key driver for used car sales. Long term trends like rising urbanization and higher vehicle ownership rates in developing markets are contributing as well. In addition, trade-ins and vehicle remarketing from corporate and rental car fleets contribute a steady supply of late-model used vehicles into the market each year. Tighter emissions regulations are also prompting more drivers to purchase used electric vehicles.
Current challenges in used car market
The used car market is facing several challenges currently such as reduced consumer spending due to economic slowdown, rising interest rates affecting auto loans, shortage of microchips limiting new car production and pushing up used car prices. The global pandemic also disrupted supply chains impacting vehicle availability. Other challenges include rising fuel costs, maintenance and repair expenses of older vehicles. Transparency and authenticity issues remain a concern for buyers in used car transactions.
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