North America Used Car Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The North America used car market size reached around USD 357.73 Billion in 2024. The market is projected to grow at a CAGR of 5.40% between 2025 and 2034 to reach nearly USD 605.29 Billion by 2034.

North America Used Car Market Growth

In Q3 of FY 2021-22, the average list price of new vehicles in Canada grew by 43%. In 2023, the average price of new passenger vehicles surged by 52% year-on-year. This has prompted consumers to switch to cost-effective second-hand models of hatchbacks and sedans, thereby driving the market expansion. Though the average price of a used car have surged by CAD 9,000 from Q3 of 2021, prices have declined steadily since Q3 of 2023. As per the market analysis, an increasing number of Canadians are purchasing used cars since their debt can be paid in a relatively short span of time (33 weeks) as compared to new vehicles (55 weeks). These factors are favourably influencing the North America used car market dynamics.

Furthermore, in the United States, unorganised vendors account for less than 10% of second-hand vehicle market, while over 90% purchasing decisions being adequately financed. This allows 7 out of 10 Americans to own a four-wheeler. Moreover, the limited supply of semiconductors worldwide has significantly impacted the availability of new automotives in the US market, which in turn is increasing the North America used car market revenue. The United States is the world’s largest market for used cars, and the introduction of used electric vehicles is also expected to favour its growth over the forecast period.

Key Trends and Developments

Price asymmetry across countries; rising demand for lower interest rates; lower cost of used cars; and increasing sales for Chevrolet Equinox are factors favouring the North America used car market growth.

October 2024

Carvana, one of the leading used car retailers in the United States reached a milestone of having sold over 4 million cars since its incorporation. This indicates the sustained demand for used automotives in the USA, which is leading to market expansion.

September 2024

AutoCanada Inc. shifted to its original strategy of providing credit solutions to financially challenged consumers purchasing used vehicles. Such initiatives are likely to propel the North America used car market development.

August 2024

AutoScout24, a pan-European digital marketplace for automotives, signed an agreement for the acquisition of TRADER Corporation. With this step, the former is expected to expand its presence in North America and diversify its service offerings to include automotive dealer software and lending solutions.

December 2023

Asbury Automotive Group, Inc. successfully acquired Jim Koons Automotive Companies, the 9th largest privately-owned automotive dealership in the United States. This includes the purchase of 6 collision centers, 20 dealerships, and 29 franchises.

Price asymmetry across countries

As per the North America used car market analysis, consumers pay a comparatively higher price for used vehicles while making purchases on the west coast as compared to the east coast. For instance, the average price of a used vehicle in British Colombia is nearly CAD 7,500 more than Atlantic Canada.

Rising demand for lower interest rates

In 2023, nearly 12% of American consumers (mostly millennials and Gen Z) suggested declining interest rates can motivate them to purchase new/used vehicle. This demographic shift suggests a potential rise in demand for used cars as financing becomes more affordable.

Lower cost of used cars

The current North America used car market outlook suggests a strong positive correlation between the prices of old and new vehicles in the Canadian market. However, Canadian consumers still prefer used cars for their lower depreciation rates and proven reliability.

Increasing sales of Chevrolet Equinox

In FY 2023-24, Chevrolet Equinox accounted for 2.1% of overall used vehicle sales in the USA. This is in line with the growing demand for fuel-efficient and cost-effective vehicles providing a comfortable travel experience to consumers.

North America Used Car Market Trends

In 2023, around 23% of all America drivers expressed their intention to acquire a new/used vehicle, with 22% suggesting price decreases can further motivate them to action. During 2018-2022, around 9.2 million vehicles were traded in the second-hand automotive industry of the USA. As per the North America used car market analysis, this increased to around 35.9 million in 2023. Driven by the introduction of high-quality and reliable automotive models in the second-hand vehicle industry, the market is expected to register significant growth over the forecast period.

North America Used Car Industry Segmentation

The report titled “North America Used Car Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type:

• Hatchbacks
• Sedan
• Sports Utility Vehicle (SUV)
• Others

Market Breakup by Fuel Type:

• Diesel
• Petrol
• Electric
• Others

Market Breakup by Vendor Type:

• Organised
• Unorganised

Market Breakup by Application:

• Offline
• Online

Market Breakup by Country:

• United States of America
• Canada

North America Used Car Market Share

Based on country, the market is segmented into the United States of America and Canada. The United States of America is projected to dominate the market, representing 90.1% of the overall market share. However, the demand for used cars in Canada expected to grow at a CAGR of 5.9% due to the growing demand for second-hand electric vehicles, including SUVs, minivans, and hatchbacks in the country.

Leading Companies in the North America Used Car Market

The North America used car market value is increasing due to the introduction of sustainable second-hand vehicles by the major players.

AutoCanada Inc.

AutoCanada Inc. was founded in 2006 and is headquartered in Edmonton, Alberta. It specialises in providing customer support services and vehicle maintenance to car owners and fleet managers.

Carvana Co.

Carvana Co. was founded in 2012 and is headquartered in Arizona, United States. It is one of the fastest growing digital platforms for retailing used automotives nationally and was the Number 2 brand on the Forbes list of most customer-centric companies in 2022.

Asbury Automotive Group

Asbury Automotive Group was formed in 1996 and is headquartered in Georgia, United States. It occupies a significant North America used car market share and is engaged in providing sales, finance, and administrative services to automotive manufacturers in the USA.

AutoNation Inc.

AutoNation Inc. was founded in 1996 and is headquartered in Florida, United States. It is engaged in selling new and second-hand automotives, apart from associated finance and insurance products.

Other players included in the North America used car market report are Sullivan Motor Company Inc, CarBravo, CarMax Enterprise Services, LLC, Group 1 Automotive Inc., Hendrick Automotive Group, Lithia Motors Inc., Sonic Automotive, and TRADER Corporation, among others.