North America Used Car Market - Industry Trends and Forecast to 2030

North America Used Car Market Analysis and Size

Factors, such as high cost of new vehicles, concerns about affordability, and an increase in demand for off-lease automobiles and subscription services by the franchise, leasing offices, and car dealers, are expected to boost the growth of the North America used car market. The used-to-new vehicle ratio has risen dramatically in the recent years in both developed as well as emerging countries. Furthermore, franchised dealers with OEM engagement in certification and marketing programs, online inventory pooling, and access to high-quality contracts are helping the used car market to expand significantly

North America Used Car Market – was valued at USD 1.2 billion in 2022 and is expected to reach USD 4.1 billion by 2030, registering a CAGR of 9.6% during the forecast period of 2023 to 2030. Online sales channel accounts for the largest service segment in the respective market owing to the high preference due to the subject-matter expertise offered by vendors. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

North America Used Car Market Scope and Segmentation

Market Definition

A car with one or more retail owners in the past is referred to as a used car, pre-owned car, or second hand car. Franchise and independent vehicle dealers, rental car agencies, buy here pay dealerships, leasing offices, auctions, and private party sales are just a few places where used cars can be purchased. Some auto dealers provide "no-haggle prices," "certified" pre-owned vehicles, and extended service agreements or warranties. The emergence of hybrid and electric vehicles, and technological advancements, such as the internet, have shifted the buyer's position in the market. Furthermore, consumers are now aware of the vehicle's residual worth, quality finance charges, availability, the price paid, and, in some cases, the profit margin earned by the seller in a closing transaction. This awareness has altered the dynamics and allowed them to use customer insight to their advantage. As a result, today's buyers are more likely to purchase old cars

North America Used Car Market Dynamics

Drivers

• High Cost of New Car and Affordability Concern

The car sector has observed augmented demand for advanced vehicle features such as power steering, climate control, and anti-lock brake systems. Now the cost of new cars more as a result of this. Furthermore, the affordability issues in the new market are indicated by the price increase in 2019, which was driven by mainstream passenger car segments. As a result, used car sales have surged compared to new car sales in the automotive industry. This is anticipated to increase demand for old cars.

• Increasing Demand for Versatile Hatchback Cars

The development of the used car market is aided by the significant presence of top automakers such as Audi AG, BMW AG, Mercedes-Benz, and Volkswagen because these manufacturers offer a large selection of hatchback car models. Players in the market offer hatchback car with a high roofline and a compact design.

Opportunities

• Increasing Presence of Several Car Manufacturers and Used Vehicle Dealers

As a result of simple accessibility of finance for used car purchases, the used cars market income exceeded USD 500 billion in 2021 and will continue to rise steadily. The manufacturing industry is the largest private investor in R&D in Europe, Europe is the world's leading manufacturer of automobiles. To increase regional automotive sector competitiveness and retain its technological hegemony globally, the European Commission promotes global technology standardization and R&D funding. Used vehicle dealerships in the area offer a range of tech-enabled options for tracking automotive performance, including smartphone applications and virtual internet outlets.

• Growth of Online Technologies and E-commerce

Technological developments in the telecom sector improved internet connectivity, and growing urbanization are some major factors for which people can now access information much more effectively. These features help used-car owners quickly advertise their vehicles and share information about them. With the help of this online platform, more people can now sell and buy cars.

Restraint/Challenge

• Issues Associated with the Expansion of Used Car Market

Expansion of the used car market will be hampered by the absence of stringent laws and regulations governing the purchasing of used cars. High used-car depreciation rates will make it harder for the market to grow. The coronavirus outbreak has negatively impacted the global demand for used vehicles by reducing demand for public transportation.

This used car market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the used car market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

 Recent Developments

• In December 2019, HELLMAN & FRIEDMAN LLC has entered into a contract to acquire the company from AutoScout24. With this acquisition, the company aims to provide value-added marketing solutions because it continues to digitalize its business models in the automobile industry.
• In December 2019, Group1 Automotive, Inc. announced their acquisition with two Lexus dealerships to grow its business presence in the market. This aided the company in making a footprint in the fast-growing market

North America Used Car Market Scope

The used car market is segmented based on vendor type, propulsion, engine capacity, dealership, sales channel and vehicle type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Vendor Type

• Organized
• Unorganized

Propulsion

• Petrol
• Diesel
• CNG
• LPG
• Electric
• Others

  Engine Capacity

• Full Size (Above 2500 CC)
• Mid-size (Between 1500-2499 CC)
• Small (Below 1499 CC)

Dealership

• Franchised
• Independent

Sales Channel

• Online
• Offline

Vehicle Type

• Passenger Car
• LCV
• HCV
• Electric Vehicle

North America Used Car Market Regional Analysis/Insights

The used car market is analyzed and market size insights and trends are provided by vendor type, propulsion, engine capacity, dealership, sales channel and vehicle type as referenced above.

The countries covered in the used car market report are report  U.S., Canada and Mexico

U.S. dominates and is fastest growing country in the used car market in revenue growth. This is mainly due to the organized and semi-organized sales industry growth. China dominates the Asia Pacific used car market due to highest number of dealers of used car in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and up-stream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and North America Used Car Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the company's focus related to used car market.

Some of the major players operating in used car market are

• Group1 Automotive, Inc. (U.S.)
• AutoNation, Inc. (U.S.)
• HELLMAN & FRIEDMAN LLC (U.S.)
• PENDRAGON (U.K.)
• CarMax Business Services, LLC (U.S.)
• Manheim (U.S.)
• THE HERTZ CORPORATION (U.S.)
• Cox Automotive (U.S.)
• Sun Toyota (U.S.)
• eBay Inc. (U.S.)
• TrueCar, Inc. (U.S.)
• VROOM (U.S.)
• Asbury Automotive Group (U.S.)
• Lithia Motors, Inc. (U.S.)
• Hendrick Automotive Group (U.S.) 

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