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Used Cars Market Size By Vehicle Type (Hatchback, Sedan, SUV), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Peer-to-peer, Franchised Dealers, Independent Dealers), By End-use (Personal, Commercial), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI5019
  • Base Year: 2021
  • Report Format: PDF

Industry Trends

Used Cars Market size exceeded USD 1.4 trillion in 2021 and is set to grow at above 4% CAGR from 2022 to 2028.
 

The increasing disposable income of the working class is augmenting the market growth as this enables individuals to buy vehicles within a limited budget. According to Statistics Canada, disposable incomes in low-income households increased by 3% and 3.3% in the first two quarters of 2021, respectively, while incomes in high-income households decreased by 6.4% and then increased by 3.9% over the same timeframe.
 

Used Cars Market

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Growth in disposable income indicates the additional purchasing power of the country's customers. Individuals are focusing on reducing their capital investments in new cars, thereby supporting used cars market expansion. The increasing adoption of used cars for personal transportation in urban areas is spurring the industry growth.
 

The outbreak of COVID-19 moderately impacted the market demand in 2020 as the pandemic forced governments to impose strict containment measures, regional lockdowns, social distancing, and quarantine periods. The market gained traction in 2021 owing to lockdown relaxations and the shifting preference of consumers toward personal mobility. This encouraged industry participants to offer used cars with flexible payment options through online platforms. The industry is expected to witness significant growth in the near future on account of the growing consumer preference for used cars in price-sensitive markets.
 

Rising demand for versatile hatchback cars in Germany

The Europe used hatchbacks cars segment is projected to expand at a growth rate of above 3.5% till 2028 propelled by increasing demand for hatchbacks that offer flexibility while driving in narrow spaces. The strong presence of leading automotive manufacturers including Audi AG, BMW AG, Mercedes-Benz, and Volkswagen offering a wide range of hatchback car models is helping in used cars market proliferation. Market players offer hatchback cars with compact design and high roofline. The split-folding rear seatbacks that usually come as standard on hatchbacks enhance space availability and subsequently provide impetus for the market value of this segment.
 

The prominence of gasoline cars in the U.S. will support market expansion

The demand for gasoline-based used cars will increase in the North America with a market share of nearly 60% in 2021. The demand for used cars operating on gasoline fuel is increasing due to low maintenance costs and the easy availability of spare parts. The vehicle delivers better acceleration and speed with less noise. According to the U.S. Energy Information Administration, about 134.83 billion gallons of vehicle gasoline were consumed in the U.S. in 2021, an average of around 369 million gallons per day.
 

Franchise dealers offering comprehensive services provide impetus to the market

Europe Used Cars Market Size By Sales Channel

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The used cars market size by franchise dealers in Europe will showcase 2.5% gains through 2028 led by an upsurge in used car sales through franchise dealers, who are authorized to process warranties & recalls on behalf of vehicle manufacturers. Franchise dealers of used cars make it easier for customers to obtain vehicle financing by allowing them to get loans directly from their preferred banks or lending institutions. Franchised car dealerships often provide Guaranteed Asset Protection (GAP) insurance, which protects customers from the vehicle's value depreciation.
 

The presence of used cars providers, such as Fair Financial Corp., Droom Technology Pvt. Ltd., Group 1 Automotive Inc., Maruti Suzuki True Value, and Uxin Group, that offer franchise car dealerships through highly transparent buying & selling processes is boosting the market share.
 

High adoption of used cars for personal usage

The North America personal used cars market size valued at around USD 400 billion in 2021. Price-sensitive buyers are more likely to purchase used cars due to lower capital investments and financial support from car dealers. OEMs are incorporating cutting-edge biometrics technologies and voice recognition capabilities in these vehicles to perform various tasks. Additional features, such as air bags, blind-spot monitors, automatic climate control, rear cross traffic alerts, and parking sensors & cameras, are boosting the adoption of used cars.
 

Companies are also providing used cars with powerful engines to offer better performance while optimizing fuel consumption. The industry will see growth in the coming years impelled by the Certified Pre-Owned (CPO) program, which enables individuals to buy used cars that have passed detailed inspections and include extended warranties.
 

The presence of various car manufacturers and used vehicle dealers in Europe

Europe Used Cars Market Share By Region

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The Europe used cars market revenue crossed USD 500 billion in 2021 and will observe steady growth owing to the easy availability of credit for purchasing used cars. Europe is the world's leading producer of automobiles, the manufacturing sector is the major private investor in research & development (R&D). The European Commission promotes worldwide technological standardization and R&D financing to boost regional automotive industry competitiveness and maintain its global technological dominance. Used car dealers in the region are providing a variety of technology-enabled solutions, such as virtual internet outlets and mobile-based applications, for tracking automotive performance.
 

Business expansion forms a key strategy

The key market players include AutoNation Inc., Asbury Automotive Group Inc., CarMax Inc., Mahindra First Choice Wheels Ltd., Arnold Clark Automobiles Ltd., AutoScout24, Cox Automotive Inc. (Autotrader), Emil Frey AG, Group 1 Automotive Inc., Inchcape Group, Carvana, Lithia Motors Inc., Lookers PLC, Maruti Suzuki India Ltd. (True Value), Mobile.de, Uxin Group and TrueCar, Inc.
 

Industry participants are focusing on organic growth strategies, such as business expansion in untapped regions, to gain a competitive edge in the industry. With nine AutoNation USA stores currently in operation across the country, the company intends to have approximately 130 AutoNation USA used car dealerships in operation by the end of 2026, with plans for one store in 2021 and 12 in 2022. Companies are concentrating their efforts on expanding their market presence by making the buying of used cars easy with competitive pricing.
 

This market research report on used cars includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipment in units from 2018 to 2028 for the following segments:

Market, By Vehicle Type

  • Hatchback
  • Sedan
  • SUV
  • Others

Market, By Fuel Type

  • Gasoline
  • Diesel
  • Hybrid/electric
  • Others

Market, By Sales Channel

  • Peer-to-peer
  • Franchised dealers
  • Independent dealers

Market, By End-Use

  • Personal
  • Commercial

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • South Africa

 

Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market size of used cars exceeded USD 1.4 trillion in 2021 and is expected to grow at a CAGR of 4% between 2022 and 2028 owing to the rising disposable income of the working class.

Europe used hatchbacks cars segment is estimated to expand at a CAGR of 3.5% through 2028 driven by the strong presence of major automotive manufacturers comprising BMW AG, Volkswagen, Audi AG, Mercedes-Benz, and others.

North America personal cars segment surpassed USD 400 billion in 2021 and is set to depict substantial growth considering the financial support from car dealers and lower capital investments.

Prominent companies in the market comprise Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., Lithia Motors Inc., Carvana, Lookers PLC, CarMax Inc., and others.

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Premium Report Details

  • Published Date: Apr 2022
  • Companies covered: 18
  • Tables & Figures: 494
  • Countries covered: 16
  • Pages: 250

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