Used Vehicle Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user and Region

The International Organization of Motor Vehicle Manufacturers predicts a double-digit compound annual growth rate (CAGR) for the automotive industry by 2028. While new cars contribute to this growth, a significant portion comes from the used vehicle market. Not all customers can afford new cars, making the availability of used vehicles crucial for both first-time buyers and repeat purchasers. Although the average holding time of vehicles has decreased in the past decade, the used vehicle market offers a diverse range of options for customers.

Shift from Public Transport to Private Mobility due to COVID-19

The fear of contracting COVID-19 and the need for social distancing have led to a shift from public transport to private mobility. Ride-sharing services, which were once popular, have become a concern for financiers and used car dealers. However, the fear of the virus has compelled customers to invest in personal mobility, benefiting the used vehicle market.

Budget Cars to Lead the Used Vehicle Market, but SUVs Remain Lucrative

Budget and fuel-efficient vehicles are expected to dominate the used vehicle market due to changing consumer preferences. The supply chain for budget cars is streamlined due to larger inventory and higher production. While SUVs are more profitable for carmakers with a widespread distribution network and higher residual value, budget cars are unlikely to be overtaken by SUVs in the used vehicle market.

Highly Fragmented Market with the Entry of Luxury Cars

The used vehicle market is highly fragmented, with a mix of local and unorganized companies. However, global carmakers have recognized the potential of the used vehicle market and have started playing a significant role in used vehicle dealership outlets. Strategic partnerships are likely to emerge in the future. Luxury carmakers, including Audi, BMW, and Mercedes-Benz, have also entered the market with new product segments.

Challenges and Opportunities in the Used Vehicle Market

Pricing competition is fierce in the used vehicle market, and companies are expanding their dealership networks and investing in online sales. Financing for used vehicles is relatively more expensive compared to new cars, which can limit market growth. However, the market benefits from higher disposable incomes and relaxed import norms in multiple countries. Franchisees and online car selling platforms further contribute to the overall growth of the used vehicle market.

Leading Companies in the Used Vehicle Market

Key players in the used vehicle market include TrueCar, Droom Technology Pvt Ltd, CarMax Inc, Penske Automotive Groups, Lithia Motors, Pendragon PLC, and Emil Frey Classics AG. These companies operate in a competitive landscape, adapting to changing consumer behavior and market trends.