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The UK used car market size is estimated to grow by USD 34.22 billion at a CAGR of 6.03% between 2022 and 2027. The market is thriving due to several key factors. Firstly, the excellent value-for-money proposition offered by used cars attracts buyers seeking affordability without compromising quality. This appeal is further bolstered by the reduced ownership cycle of cars, as consumers opt for more frequent upgrades to newer models, thereby increasing the availability of pre-owned vehicles. Additionally, the rapid pace of technological innovations in passenger cars contributes to the attractiveness of used cars, as buyers can access advanced features and amenities at a fraction of the cost compared to new vehicles. These three factors collectively drive the growth of the market, offering consumers a wide range of options while accommodating their budgetary constraints and desire for modern automotive technology.
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This report provides a detailed analysis of the market by and Channel (Organized and Unorganized), Vehicle Type (Compact car, SUV, and Mid size), Type (Petrol, Diesel, and Others).
The organized segment segment is estimated to witness significant growth during the forecast period. Organized used car sellers include dealer chains, online marketplaces, and dealers affiliated with original equipment manufacturers (OEMs). Many organized sellers offer technical expertise as well as financial assistance to customers looking for used cars. These market players are more adept at digitizing to create a seamless interface. These characteristics of organized sellers will drive used car sales during the forecast period.
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The organized segment was the largest segment and was valued at USD 69.99 billion in 2017. Several organized suppliers are also enforcing advanced technologies such as blockchain to store and maintain details of vehicle ownership, spare parts replacement history, and service. The adoption of these modern technologies, including AI and blockchain, is driving the growth of the organized segment of the market over the forecast period.
The market offers a diverse range of options, including refurbished automobiles, certified pre-owned cars, and secondhand trucks. Buyers are drawn to the affordability and variety of pre-owned vehicles, from resale cars to pre-loved autos. With certified used vehicles and refurbished automobiles gaining popularity, customers have access to reliable and quality options. Whether it's pre-owned vans or previously owned SUVs, the market caters to various preferences and budgets. As the demand for recycled cars and secondhand automobiles continues to rise, the used car market remains a thriving industry, offering excellent value and choices for consumers.
The primary driver behind the growth of the market is the exceptional value proposition offered by used cars. With an increasing number of car manufacturers venturing into the pre-owned vehicle sector and a rising number of online dealerships, customer perceptions regarding the availability of used cars have improved significantly. Customers opt for used cars over new ones primarily due to their affordability. Consequently, to instill trust among customers, many used car dealerships provide supplementary services. For instance, dealerships offer extended warranties, enabling free servicing at the dealership for a specific period post-purchase. Additional amenities like roadside assistance or towing services further enhance the customer experience, fostering certified used cars market growth during the forecast period.
Enhanced touchpoint management emerges as the key trend driving market expansion. Automakers and used car dealerships operating online platforms increasingly employ touchpoint management technology to gather feedback on website usability. These online platforms serve as the primary interface for potential buyers seeking vehicle details, including models, features, pricing, and locations. Moreover, businesses utilize various digital channels such as mobile apps, review platforms, social media, and customer databases to gather feedback and insights. This integrated approach to touchpoint management is expected to propel market growth in the forecast period, catering to the diverse needs of buyers seeking pre-owned vehicles.
Increasing preference for car subscription services is a challenge that affects the growth of the market. The car subscription model is a growing business model, mainly preferred by those choosing a personal mode of transportation. Subscribing a car mainly reduces pressure on the buyer's finances because they only have to pay a portion of the cost of the car. Additionally, buyers can choose another car model at the end of the subscription period.
Moreover, the car subscription business model includes all costs associated with maintenance, vehicle insurance, and periodic maintenance costs as part of the monthly subscription fee. Various car manufacturers have rolled out car subscription business models in major cities across the UK. Therefore, the growing preference due to such factors towards car subscriptions will impede the growth of the market during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market offers a diverse array of options, including secondhand automobiles, previously owned cars, certified used cars, and more. With a wide selection of pre-loved vehicles, recycled autos, and refurbished cars, buyers have ample choices to suit their preferences and budgets. Whether seeking certified pre-owned trucks, resale vans, or pre-loved SUVs, consumers benefit from the variety and affordability of the market. From secondhand autos to pre-owned vans and previously owned SUVs, the US used car market caters to diverse needs while providing quality vehicles for discerning buyers. Certified pre-owned trucks, resale vans, and pre-loved SUVs add to the extensive range, ensuring that every buyer finds their ideal match.
In addition to offering a wide range of options, the US used car market also assures certified pre-owned cars and trucks. These vehicles undergo rigorous inspections and meet specific criteria set by manufacturers or dealerships, ensuring quality and reliability. With options such as certified pre-owned cars, resale vehicles, and refurbished autos, buyers can enjoy peace of mind knowing they are investing in a well-maintained vehicle. Whether opting for recycled cars, pre-owned autos, or previously owned vehicles, consumers can find trusted options that align with their preferences and budgets. The availability of certified pre-owned trucks, resale vehicles, and refurbished autos further enhances the credibility and appeal of the market.
In the UK, the used car market offers a variety of options ranging from secondhand cars to certified used vehicles. Resale automobiles, refurbished vehicles, and pre-loved cars are among the popular choices. Secondhand trucks also cater to commercial and personal transportation needs. With a focus on affordability and sustainability, recycled vehicles provide environmentally-conscious alternatives. The market thrives on previously owned autos, ensuring quality and reliability for discerning buyers.
The market forecasting market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
UK Used Car Market Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.03% |
Market growth 2023-2027 |
USD 34.22 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Aramis Group, Arnold Clark Automobiles Ltd., Auto Trader Group Plc, Bauer Media Group, Car Giant Ltd., Carcraft.co.UK, CarGurus Inc., CarMax Inc., Cazoo Ltd., Cinch Cars Ltd., Constellation Automotive Group Ltd., Group 1 Automotive Inc., Hertz Global Holdings Inc., Lithia Motors Inc., McCarthy Cars UK Ltd., Penske Corp., Toyota Motor Corp., TrueCar Inc., and Motors.co.UK Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Channel
7 Market Segmentation by Vehicle Type
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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