Market Overview:
Global Used Vehicle Market size is expected to grow from USD 1147.89 Million in 2023 to USD 2409.95 Million by 2032, at a CAGR of 8.59% during the forecast period (2024-2032)
A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" used cars, and extended service plans or warranties. The growth of the Internet has fueled the availability of information on the prices of used cars. This information was once only available in trade publications that dealers had access to.
Top Key Players for Used Vehicle Market:
Alibaba Group, Vroom, OLX, Cars24, Autotrader (Cox Automotive), TrueCar, Truevalue, First Choice, Maruti Suzuki India Ltd., PenskeCars (Penske Automotive Group), Quikr, Mahindra First Choice, Group 1 Automotive Inc., Asbury Automotive Group, Hendrick Automotive Group, AutoNation Inc., LITHIA Motor Inc., eBay, CarMax Business Services LLC., Scout24 AG, Cox Automotive, Sun Toyota, and other major players.
Market Dynamics and Factors for Used Vehicle Market:
Drivers:
Personal Mobility is in High Demand
In practically all cities across the country, population growth has outpaced public transportation, resulting in a decline in reliance on public transportation. The susceptibility of such mediums was also demonstrated by the pandemic. People who formerly relied on public and private transportation, carpooling, or shared services have moved their attention to personal mobility. People are focused more on social distance standards in metro and even non-metro cities, with health safety being the primary concern. Eventually, this will lead to an increase in the demand for personal automobiles. People from all walks of life, even those from lower socioeconomic levels, are inclined to save their discretionary money in the event of future uncertainty. As a result, personal mobility is likely to grow as a result of affordability.
Opportunities:
Technology advancements
Technology advancements such as the internet's expansion, the usage of e-commerce sites/applications to drive company demand, and the advent of hybrid and electric vehicles have transformed the buyer's position in the market. Consumers are getting more aware of the car, its residual value, third-party profit margin, and other factors thanks to web technology. Furthermore, rising urbanization increased internet access, and technological advancements in the telecom industry have resulted in a vastly improved information flow for individuals.
Segmentation Analysis of the Used Vehicle Market:
By vehicle type, the passenger vehicle segment is expected to dominate the used vehicle market over the forecast period. The private vehicle has altered contemporary civilization for almost a century by enabling independence and mobility. Because of the ever-increasing distances between home, work, educational institutions, shopping, and recreational facilities, mobility is becoming increasingly crucial. People who live in cities may use taxis, carsharing, or on-demand services instead of or in addition to their vehicles.
By vehicle age, the 0-5 years segment is expected to hold the maximum used vehicle market share over the forecast period. The optimal age to buy a used automobile is very subjective, and it all depends on the customer's preferences. Buying a used automobile that is less than five years old saves a lot of money over buying a new car and gives you an almost new car. A five-year-old car, on the other hand, delivers even more spectacular savings and is unlikely to cost much more in yearly maintenance provided the client is ready to forego appearance and amenities.
Regional Analysis of the Used Vehicle Market:
Due to the region's growing automotive industry and the region's strong presence of economic inequalities, which has created two distinct consumer demographics, one buying new cars and the other buying used cars, Asia Pacific is expected to dominate the global used vehicle market over the forecast period. SUVs and other 4WD vehicles are among the major income sources for the used vehicle industry, therefore the expanding production of SUVs by regional automotive manufacturers in the Asia Pacific is projected to be a significant driver for the used vehicle market in the Asia Pacific.
Key Industry Development:
In November 2021, Shriram Automall India Ltd and Daimler India Commercial Vehicles have launched a strategic partnership to provide used commercial vehicles to the local CV market. Customers will be able to swap their old car of any brand for a new or used BharatBenz vehicle anywhere in the country as a result of the partnership.
