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The US - Used Car Market size is estimated to grow at a CAGR of 4.14% between 2022 and 2027. The market size is forecast to increase by USD 35.96 billion. The growth of the market depends on several factors such as the excellent value for money proposition of used cars, the reduced ownership cycle of cars, and the increasing technological innovations in passenger cars.
This US Used Car Market report extensively covers market segmentation by distribution channel (third-party channel sales and OEM channel sales), and product (mid-size, full size, and compact size). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The excellent value-for-money proposition of used cars is driving growth in the US Used Car Market. The rising number of automakers entering the US - Used Car Market and the quality of used cars is improving in the eyes of customers due to an increased number of online dealers. Customers choose to purchase a used car over a new car, primarily due to its affordability.
However, they are often skeptical of the quality of the used vehicle as the details regarding the previous ownership of the vehicle are often vague, and any damage to the vehicle after purchase would be void of warranty. The quality of the vehicle is usually guaranteed by a number of additional benefits provided when purchasing used cars. Thus, excellent value for money from used cars will drive the growth of the market in focus during the forecast period.
The increased penetration of websites dedicated to selling used cars is a key trend in the US Used Car Market. The increased penetration of the Internet has facilitated an efficient online marketplace in the US. Consequently, the growing penetration of online car sales websites has made it easier for customers to purchase a used vehicle by means of websites in the country. Such sites help sellers to reach a vast number of potential buyers.
Moreover, online used car websites offer free or discounted after-sales service packages that cover various types of maintenance costs associated with the vehicle after purchase. The sale of used cars in the US will be stimulated by more convenient ways to swap vehicles with other well-maintained vehicles through an online website. and will also drive the growth of the market in focus during the forecast period.
The increasing preference for car subscription services is a major challenge faced by the US - Used Car Market. The subscription model for cars is becoming increasingly popular among individuals who prefer personal transportation over time without having to invest and commit to a single-vehicle model for a more extended period. The car subscription model would allow a potential car buyer to choose any different vehicle model for a fixed period and miles.
Moreover, the car subscription business model covers all costs related to maintenance, vehicle insurance, and periodic service costs under the monthly subscription fee. The growing popularity of car subscriptions, as mentioned above, will have a negative impact on market growth in focus during the forecast period.
The market research 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
US Used Car Market 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.
AutoNation Inc. - The company offers used cars such as the 2020 Acura MDX, 2019 Acura RDX, 2020 BMW 3 Series, and 2021 Chrysler 300.
The research report also includes detailed analyses of the competitive landscape of the market and information about 12 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 third-party channel segment is estimated to witness significant growth during the forecast period. The new US car market is highly competitive, with a large number of new vehicle models being launched every year. This, however, drives a steady supply of used cars into the US - Used Car Market. There is a substantial difference in used car prices compared to new cars.
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The third-party channel sales segment was the largest segment and was valued at USD 86.23 billion in 2017. The progressing number of new cars launched in the US car market will cause the average ownership cycle per car to reduce over the forecast period. This trend will be beneficial to used car buyers because they would purchase vehicles that did not have significant use during the previous ownership cycle.
The US Used Car Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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US Used Car Market Scope |
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Report Coverage |
Details |
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Page number |
129 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.14% |
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Market growth 2023-2027 |
USD 35.96 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.0 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AutoNation Inc., CarMax Inc., Carvana Co., General Motors Co., Group 1 Automotive Inc., Hendrick Automotive Group, Hertz Global Holdings Inc., Lithia Motors Inc., Penske Automotive Group Inc., Sonic Automotive Inc., Vroom Inc., and Asbury Automotive Group Inc. |
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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, and Market condition analysis for the forecast period. |
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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 Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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