Used Cars Market size was over USD 2617.5 billion in 2024 and is estimated to reach USD 4542 billion by the end of 2037, expanding at a CAGR of 4.7% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the used cars is evaluated at USD 2740.5 billion.
Rising car prices are one of the major reasons behind the growth of this sector. According to a CFPB report published in February 2022, the CPI of new cars increased by 12% in 2022. The report further stated that the chip shortage decreased new production compared to the previous year. Thus, consumers are opting for more alternative options, including used vehicles.
The limited inventory due to ongoing challenges has severely disrupted the supply chain of new cars. In addition, the budget-friendly switch for an upgraded version encourages consumers to invest in the used cars market. Many companies are now offering attractive trade-in solutions to avail pre-owned models at an affordable price. For instance, in June 2022, BCA launched a regular sales program, Forecourt Ready to offer the highest-conditioned vehicles. The ready-to-retail models can support customers with uplifted auction standards. Such facilities can reduce the pre-sale refurbishing cost for dealers, gaining more retailer interest in this industry.
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.7% |
|
Base Year Market Size (2024) |
USD 2617.5 billion |
|
Forecast Year Market Size (2037) |
USD 4542 billion |
|
Regional Scope |
|
Vehicle (Hatchback, Sedan, SUV)
In terms of vehicle type, the used cars market is predicted to be dominated by the SUV segment by the end of 2037. It is poised to capture the largest share of 36.6% during the forecast period. The fuel efficiency of these models makes them a budget-friendly option for families, thereby increasing their demand in the pre-owned industry. The potential of holding its value makes it a beneficial option for the reselling process. SUVs are preferred for urban areas due to their practicality and diverse driving capability. This further boosts the demand for this category. According to an article published by The Times of India, in October 2024, the sale of used SUVs spiked by 49% during the festive season.
Fuel (Gasoline, Diesel, Hybrid, Electric)
Based on fuel type, the used cars market is predicted to register significant growth in the electric vehicle segment. The sale of used EVs gained traction due to growing awareness of environmental issues. The effectiveness of electric cars in reducing carbon emissions has inspired companies to invest in managing their footprint. In May 2023, Arnold invested USD 25.0 million to strengthen the EV charging network across the UK. The outlay of Arnold Clark Charge encompassed the installation of over 500 charging stations. Such investments are clear evidence of the company’s plan to expand its pre-owned portfolio. This further empowers the adoption of used EVs by contributing to infrastructure development.
Our in-depth analysis of the market includes the following segments:
|
Vehicle |
|
|
Fuel |
|
|
Sales Channel |
|
|
End use |
|
Europe Market Statistics
Europe used cars market is expected to dominate revenue share of around 30.7% by the end of 2037 due to increasing consumer demand for affordable personal cars. The rising price of vehicles has propelled the demand for cost-effective transportation options. According to a report published by the European Central Bank, in February 2022, car prices in this region were accelerated to 8.7% by August. However, the decline in new car production is causing a scarcity in availability and an increment in used car prices. Companies are opting for strategic advertisements to resolve the issue by promoting them locally. For instance, in July 2024, Arnold, a leading supplier of used cars, partnered with Scottish Rugby to provide vehicles for the sports community employees. This will further help Arnold to capture the grand audience of the Scotland Men’s team.
The UK is projected to show remarkable development in the used cars market by the end of 2037. The country is highly influenced by environmental concerns, driving the need for sustainable alternatives in this sector. The increasing demand for hybrid and fully electric vehicles has encouraged companies to outstretch their dealership network. For instance, in March 2024, the GWM ORA appointed Richardson’s and Hartwell as their used car retailer in the UK. These new retail partners are expected to embellish the company network through their expertise in used electric vehicles across the country.
France is established as a reliable supplier for the market in this region. As the country focuses on reliability, fuel efficiency, and advanced technology, it is aspiring to invest in platforms to streamline pre-owned vehicles. This is further fueling the supply chain to introduce innovative solutions with more convenient features. For instance, in January 2023, ProovStation raised USD 11.34 million to deploy AI-powered testing stations for used cars. The assistive facilities aim to deliver automated valuation and inspection results in just 3 seconds. Such technologies are inspiring more developments in this industry to secure quality.
North America Market Analysis
The ongoing technological advancements and shifting consumer preferences are shaping the used cars market dynamics. Enhanced online platforms including Carvana, Vroom, and AutoTrader have been successfully increasing consumer engagement in this sector, by making the process more accessible and efficient through digital tools. The popularity of electric vehicles has also influenced the market to opt for environmentally friendly options. Many government subsidiary plans are supporting these initiatives through funding and incentives. For instance, in August 2024, the Washington State Department of Commerce released a new state rebate program. This will allocate a USD 2,500 rebate for each used EV purchase and lease to make it affordable for low-income drivers.
The U.S. encompasses advanced technology to boost its market. Growing demand for affordable alternatives to avoid highly-priced new vehicles is propelling the growth of this country. Environmental concerns and federal incentives are increasing interest in buying pre-owned EVs to promote sustainability. Online platforms are improving and expanding their services to offer seamless transactions. For instance, in February 2024, Carvana expanded its same-day delivery of used cars in the Sacramento area. This further captivates more investment in this field.
Canada is encouraging consumers to invest in the market to cope with its current economic condition. The country is witnessing a robust demand for affordable used vehicles among first-time buyers. The drivers are opting for reliable brands such as Ford, Honda, and Toyota for SUVs and trucks to fit the country’s lifestyle. Many dealer points have enabled online sales and home delivery options, bringing virtual convenience. This further encourages more buyers and sellers to purchase or list their vehicles from these platforms.
The transition of the dealership network toward digital platforms is a major influencing factor in the used cars market. These online sales models are changing the landscape by offering virtual showrooms, detailed vehicle evaluations, and remote transactions. Thus, it enhances user experience and promotes more advancement in this industry. For instance, in March 2022, AutoScout acquired a majority stake in AUTOproff. This acquisition helped to connect retailers are wholesalers digitally to support fast-growing Europe used cars businesses. Global leaders are now expanding their networks through subscription services. Such facilities enable access to insurance and maintenance in a single package. This further helps companies to differentiate themselves from other competitors. Such key players include:
Author Credits: Saima Khursheed
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?