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

The Latin America used car market size reached around USD 70.63 Billion in 2024. The market is projected to grow at a CAGR of 5.10% between 2025 and 2034 to reach nearly USD 116.15 Billion by 2034.

Latin America Used Car Market Growth

Only 1.5 of 10 people own a car in Latin America. Unorganised vendors account for 90% of overall second-hand automotive sales in the region. This creates prohibitive barriers for people to access financing solutions, since institutions prefer lending for purchases made through professional dealerships. As per the market analysis, no formal player occupy over 1% of the Latin America used car market share. This has prompted many startups, such as Kavak, to expand their market presence by enhancing people’s access to financing used cars and reducing the risk of fraudulent transactions. The company finances around 50% of overall used car sales on its platforms, which is much higher than the industrial average of 10%. This is creating a favourable market outlook for the forecast period.

Moreover, the Andean region (including countries such as Chile, Peru, Ecuador, Argentina, and Venezuela) accounts for over 3 million used car transaction worth over USD 24 million annually. Colombia is regarded as one of the major markets for second-hand automotives in Latin America after Mexico, accounting for 1.2 million used car deals annually. As per industry reports, Mexico accounts for 6 million used car transactions in Latin America but only 5% of deals receive adequate financing. This is expected to prompt market players to make increasing investments into expanding the accessibility to financing options, which is expected to contribute to the Latin America used car market expansion.

Key Trends and Developments

Rising automotive imports; improvements in fuel-efficiency standards; and thriving start-up ecosystem in Mexico are factors favouring the Latin America used car market growth.

July 2024

Kavak issues tokenized debt of over USD 1 million in Brazil to invest in the domestic used cars industry. It further plans to issue USD 5 million of debt via Liqi, a local tokenisation platform.

July 2022

Kavak revealed its new expansion plans in Peru, Chile, Colombia, and Turkey, with a total investment of USD 180 million. This has also expedited the Latin America used car market development.

October 2020

Amidst the thriving state of entrepreneurship in Mexico, Kavak became the first national startup to achieve the designation of a unicorn after reaching a valuation of over USD 1.15 million.

August 2020

Kavak acquired Checkars.com, an Argentina-based company dealing in used vehicles, to expand its international market presence. It further aims to invest USD 18 million to expand its existing dealership offerings, leading to Latin America used car market expansion.

Shift towards formalisation

Over 4000 used car transactions in Latin America recently reported some irregularity. This is prompting market players to strengthen their safety standards to ensure a hassle-free vehicle purchase experience.

Rising automotive imports

The Latin American countries are expected to strengthen the vehicle safety and emission standards for second-hand automotives imported from North America and Europe, which is expected to positively shape the Latin America used car market outlook.

Improvements in fuel-efficiency standards

By 2030, the Mexican government aims to minimise national carbon emissions by 265 million tons by reforming the fuel-efficiency standards for automotive producers. This is expected to favourably impact the Latin America used car market dynamics.

Thriving start-up ecosystem in Mexico

Rapid economic development has fuelled the emergence of innovative start-ups focusing on second-hand automotives in Latin America, thereby leading to market growth.

Latin America Used Car Market Trends

Nearly 90% of automotives present in most regions of Latin America are imported from North American and European countries. Of this, almost 80% fail to meet the minimum environmental protection and safety standards laid out by global agencies. Presence of an inadequate public transportation infrastructure has prompted people to shift towards used cars, but private motorisation levels remain at around 3%. While the global transportation industry accounts for 24% of global carbon emissions, Latin America’s transportation industry accounts for 35% of total carbon emissions. This is expected to prompt governments to introduce stringent norms for imported second-hand vehicles, thereby favouring the market growth.

Latin America Used Car Industry Segmentation

The report titled “Latin 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:

• Brazil
• Argentina
• Mexico
• Others

Latin America Used Car Market Share

Based on country, the market is segmented into Brazil, Mexico, and Argentina, among others. Mexico is projected to dominate the market, representing 17.2% of the overall market share. Over the forecast period, the demand for used cars in Mexico is expected to grow at a CAGR of 5.8% due to the growing demand for high-quality second-hand automotives in foreign markets. The market is also expected to be influenced by the introduction of stringent vehicular safety standards.

Leading Companies in the Latin America Used Car Market

Major players are enhancing their digital market presence and focusing on improving customer purchase experience to increase the Latin America used car market value.

Latamautos Mexico

Latamautos Mexico was founded in 2014 and is headquartered in Mexico City. It operates in 6 countries across South America and is engaged in providing financing, insurance, vehicle tracking, and mechanical warranties for automotives, among other services.

Dalton Corporativo

Dalton Corporativo was founded in 2022 and is headquartered in the United States. As per Latin America used car market analysis, it is an automotive and parts dealership company based in National City of California.

Zapata Corporation

Zapata Corporation was founded in 2008 and is headquartered in France. It is engaged in pioneering innovative mobility solutions (including flying scooters) and specialises in the development of personal aviation solutions.

Toyota Motor Corporation

Toyota Motor Corporation was founded in August 1937 and is headquartered in Toyota City, Japan. It is engaged in manufacturing and distribution motor vehicles worldwide.

Other players included in the Latin America used car market report are S. de RL de CV, AUTOCOM SEMINUEVOS, SAPI DE CV, Grupo Seminuevos Coapa, S.A. de C.V., Car One SA, CHECK MOVILIDAD SA (KAVAK), CarAgencia S.A, Chileautos SpA, AUTOSUSADOS CHILE, and AUTOMAX SAS, among others.