Used Car Market Size

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.