The global used car market is witnessing growth and is projected to reach USD 2,980.2 billion by 2030. This development can be credited to the rising internet usage armed with the obtainability of data on online channels; the increasing demand for off-lease vehicles from franchises, auto dealers, and leasing offices; and the rising popularity of car subscription services.
The medium category had the largest revenue share, of 38.3%, in the industry. This is mainly because of the better obtainability of less-driven, high-quality utilized automobiles and the increasing buying power of customers across emerging nations. While the small category will advance at a significant CAGR in the coming years. This can be mainly propelled by the lesser average price of ownership and lesser average mileage of smaller cars, and also advantages offered by dealers for these cars.
In recent years, the offline category had the larger share. This is mainly because of consumers’ robust preference for purchasing second-hand cars from trustworthy dealers. Before buying a used car from a dealer, customers visit offices to take a test drive of the car and consider their choices. Thus, it is projected that the offline category would lead the industry throughout the projection period.
The industry is observing new industry entrants and rising rivalry. Customer perceptions of utilized cars have altered as a result of dependability and additional services, which result in boosting the demand for automotive subscription services. Such services let operators use cars on a monthly basis in exchange for fees that cover insurance, maintenance, and roadside support.
Because of the quick improvement of technology and the launch of new vehicle models, clientele can also vend or trade in their old car for a new one. Therefore, the industry for used cars in the future might offer advantages like value for money.
In recent years, the APAC used car industry accounted for the largest income share, of approximately 34%, and it is also estimated to advance at the highest CAGR over the projection period. This is credited to the increasing demand for used cars in developing nations like China, India, and other Asian nations; and the growing count of organized businesses offering used automobile trading services in the region.