US - Used Car Market by Distribution Channel and Product - Forecast and Analysis 2023-2027

Published: Oct 2023

Pages: 129

SKU: IRTNTR41649

Snapshot

US Used Car Market Forecast 2023-2027

The US Used Car Market size is estimated to grow by USD 35.96 billion at a CAGR of 4.14% between 2022 and 2027. 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.

Overview of the US Used Car Market

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Key Drivers, Trends, and Challenges

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.

Key Driver

The excellent value-for-money proposition of vehicles is driving growth in the market. The rising number of automakers entering the 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.

In the US, the market remains a significant driver within the automotive industry, buoyed by robust sales of pre-owned vehicles. With a plethora of options available, consumers are drawn to the diverse content and selection offered across dealership lots nationwide. This trend underscores the American penchant for value and variety in the used vehicle market. As a vital segment of the US automotive industry, used car sales continue to thrive, shaping the landscape of the US market. The resilient nature of the American consumer contributes to the market's sustained growth, reinforcing its position within the broader automobile industry.

Key Trends

The increased penetration of websites dedicated to selling cars is a key trend in the 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 using websites in the country. Such sites help sellers to reach a vast number of potential buyers.

Moreover, online 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 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 market growth and trends in focus during the forecast period.

Future Outlook and Predictions for the Market

The future outlook for the market remains dynamic, shaped by various factors including the pandemic's aftermath and evolving consumer preferences. The news indicates a surge in demand for pre-owned vehicles due to depreciation concerns and a limited inventory of new cars. Consumers prioritize trusted brands and certified vehicles, emphasizing quality and reliability. Dealerships adapt, enhancing online platforms for seamless transactions. Competition intensifies among brands, fostering innovation in financing and inspection services. Despite mileage concerns, a transparent vehicle history becomes pivotal. Trade-in opportunities rise, fueling the used car marketplace's growth. Overall, the car industry anticipates continued expansion, reshaping the automotive landscape in America.

Challenging Factors

The increasing preference for car subscription services is a major challenge faced by the 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 maintenance, vehicle insurance, and periodic service costs under the monthly subscription fee. The growing popularity of car subscriptions, as mentioned above, will harm market growth in focus during the forecast period.

Customer Landscape

The market trends and analysis 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 analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

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 the 2020 Acura MDX, 2019 Acura RDX, 2020 BMW 3 Series, and 2021 Chrysler 300.

The market 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.

What is the Largest-Growing Segment in the Market?

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 cars into the 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 car buyers because they would purchase vehicles that did not have significant use during the previous ownership cycle.

Segment Overview

The market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

Distribution Channel Outlook (USD Billion, 2017 - 2027)
- Third-party channel sales
- OEM channel sales

Application Outlook (USD Billion, 2017 - 2027)
- Mid size
- Full size
- Compact size

Market Analyst Overview

The Market is a significant segment of the automotive industry, characterized by robust vehicle sales and a thriving used car industry. The market encompasses various types of vehicles, including used vehicles, catering to diverse consumer needs.

The U.S. used-car market is driven by factors such as affordability, availability of a wide range of models, and the desire for cost-effective transportation. Used-vehicle sales in US contribute significantly to the automotive sector, reflecting consumer preferences for pre-owned vehicles. As the market continues to evolve, it remains a crucial component of the overall automotive industry.

Market Scope
Report Coverage	Details
Page number	129
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.14%
Market growth 2023-2027	USD 35.96 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.0
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, Market Forecasting, 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.
Customization purview	If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the market between 2023 and 2027
Precise estimation of the market in focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the market across the US
A thorough analysis of the market’s competitive landscape and detailed information about companies
Comprehensive market analysis and report on the factors that will challenge the growth of market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by Distribution Channel
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 06: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 07: Parent market
- Exhibit 08: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 09: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 10: Market segments

3.3 Market size 2022

3.4 Market outlook: Forecast for 2022-2027
- Exhibit 11: Chart on US - Market size and forecast 2022-2027 ($ billion)
- Exhibit 12: Data Table on US - Market size and forecast 2022-2027 ($ billion)
- Exhibit 13: Chart on US: Year-over-year growth 2022-2027 (%)
- Exhibit 14: Data Table on US: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

4.1 Used car market in US 2017 - 2021
- Exhibit 15: Historic Market Size – Data Table on used car market in US 2017 - 2021 ($ billion)

4.2 Distribution Channel Segment Analysis 2017 - 2021
- Exhibit 16: Historic Market Size – Distribution Channel Segment 2017 - 2021 ($ billion)

4.3 Product Segment Analysis 2017 - 2021
- Exhibit 17: Historic Market Size – Product Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 18: Five forces analysis - Comparison between 2022 and 2027

5.2 Bargaining power of buyers
- Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

5.3 Bargaining power of suppliers
- Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

5.4 Threat of new entrants
- Exhibit 21: Threat of new entrants – Impact of key factors in 2022 and 2027

5.5 Threat of substitutes
- Exhibit 22: Threat of substitutes – Impact of key factors in 2022 and 2027

5.6 Threat of rivalry
- Exhibit 23: Threat of rivalry – Impact of key factors in 2022 and 2027

5.7 Market condition
- Exhibit 24: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Distribution Channel

6.1 Market segments
- Exhibit 25: Chart on Distribution Channel - Market share 2022-2027 (%)
- Exhibit 26: Data Table on Distribution Channel - Market share 2022-2027 (%)

6.2 Comparison by Distribution Channel
- Exhibit 27: Chart on Comparison by Distribution Channel
- Exhibit 28: Data Table on Comparison by Distribution Channel

6.3 Third-party channel sales - Market size and forecast 2022-2027
- Exhibit 29: Chart on Third-party channel sales - Market size and forecast 2022-2027 ($ billion)
- Exhibit 30: Data Table on Third-party channel sales - Market size and forecast 2022-2027 ($ billion)
- Exhibit 31: Chart on Third-party channel sales - Year-over-year growth 2022-2027 (%)
- Exhibit 32: Data Table on Third-party channel sales - Year-over-year growth 2022-2027 (%)

6.4 OEM channel sales - Market size and forecast 2022-2027
- Exhibit 33: Chart on OEM channel sales - Market size and forecast 2022-2027 ($ billion)
- Exhibit 34: Data Table on OEM channel sales - Market size and forecast 2022-2027 ($ billion)
- Exhibit 35: Chart on OEM channel sales - Year-over-year growth 2022-2027 (%)
- Exhibit 36: Data Table on OEM channel sales - Year-over-year growth 2022-2027 (%)

6.5 Market opportunity by Distribution Channel
- Exhibit 37: Market opportunity by Distribution Channel ($ billion)
- Exhibit 38: Data Table on Market opportunity by Distribution Channel ($ billion)

7 Market Segmentation by Product

7.1 Market segments
- Exhibit 39: Chart on Product - Market share 2022-2027 (%)
- Exhibit 40: Data Table on Product - Market share 2022-2027 (%)

7.2 Comparison by Product
- Exhibit 41: Chart on Comparison by Product
- Exhibit 42: Data Table on Comparison by Product

7.3 Mid size - Market size and forecast 2022-2027
- Exhibit 43: Chart on Mid size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 44: Data Table on Mid size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 45: Chart on Mid size - Year-over-year growth 2022-2027 (%)
- Exhibit 46: Data Table on Mid size - Year-over-year growth 2022-2027 (%)

7.4 Full size - Market size and forecast 2022-2027
- Exhibit 47: Chart on Full size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 48: Data Table on Full size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 49: Chart on Full size - Year-over-year growth 2022-2027 (%)
- Exhibit 50: Data Table on Full size - Year-over-year growth 2022-2027 (%)

7.5 Compact size - Market size and forecast 2022-2027
- Exhibit 51: Chart on Compact size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 52: Data Table on Compact size - Market size and forecast 2022-2027 ($ billion)
- Exhibit 53: Chart on Compact size - Year-over-year growth 2022-2027 (%)
- Exhibit 54: Data Table on Compact size - Year-over-year growth 2022-2027 (%)

7.6 Market opportunity by Product
- Exhibit 55: Market opportunity by Product ($ billion)
- Exhibit 56: Data Table on Market opportunity by Product ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 57: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Drivers, Challenges, and Trends

9.1 Market drivers

9.2 Market challenges

9.3 Impact of drivers and challenges
- Exhibit 58: Impact of drivers and challenges in 2022 and 2027

9.4 Market trends

10 Vendor Landscape

10.1 Overview

10.2 Vendor landscape
- Exhibit 59: Overview on Criticality of inputs and Factors of differentiation

10.3 Landscape disruption
- Exhibit 60: Overview on factors of disruption

10.4 Industry risks
- Exhibit 61: Impact of key risks on business

11 Vendor Analysis

11.1 Vendors covered
- Exhibit 62: Vendors covered

11.2 Market positioning of vendors
- Exhibit 63: Matrix on vendor position and classification

11.3 Asbury Automotive Group Inc.
- Exhibit 64: Asbury Automotive Group Inc. - Overview
- Exhibit 65: Asbury Automotive Group Inc. - Business segments
- Exhibit 66: Asbury Automotive Group Inc. - Key offerings
- Exhibit 67: Asbury Automotive Group Inc. - Segment focus

11.4 AutoNation Inc.
- Exhibit 68: AutoNation Inc. - Overview
- Exhibit 69: AutoNation Inc. - Business segments
- Exhibit 70: AutoNation Inc. - Key offerings
- Exhibit 71: AutoNation Inc. - Segment focus

11.5 CarMax Inc.
- Exhibit 72: CarMax Inc. - Overview
- Exhibit 73: CarMax Inc. - Business segments
- Exhibit 74: CarMax Inc. - Key news
- Exhibit 75: CarMax Inc. - Key offerings
- Exhibit 76: CarMax Inc. - Segment focus

11.6 Carvana Co.
- Exhibit 77: Carvana Co. - Overview
- Exhibit 78: Carvana Co. - Product / Service
- Exhibit 79: Carvana Co. - Key offerings

11.7 General Motors Co.
- Exhibit 80: General Motors Co. - Overview
- Exhibit 81: General Motors Co. - Business segments
- Exhibit 82: General Motors Co. - Key news
- Exhibit 83: General Motors Co. - Key offerings
- Exhibit 84: General Motors Co. - Segment focus

11.8 Group 1 Automotive Inc.
- Exhibit 85: Group 1 Automotive Inc. - Overview
- Exhibit 86: Group 1 Automotive Inc. - Business segments
- Exhibit 87: Group 1 Automotive Inc. - Key offerings
- Exhibit 88: Group 1 Automotive Inc. - Segment focus

11.9 Hendrick Automotive Group
- Exhibit 89: Hendrick Automotive Group - Overview
- Exhibit 90: Hendrick Automotive Group - Product / Service
- Exhibit 91: Hendrick Automotive Group - Key offerings

11.10 Hertz Global Holdings Inc.
- Exhibit 92: Hertz Global Holdings Inc. - Overview
- Exhibit 93: Hertz Global Holdings Inc. - Business segments
- Exhibit 94: Hertz Global Holdings Inc. - Key offerings
- Exhibit 95: Hertz Global Holdings Inc. - Segment focus

11.11 Lithia Motors Inc.
- Exhibit 96: Lithia Motors Inc. - Overview
- Exhibit 97: Lithia Motors Inc. - Business segments
- Exhibit 98: Lithia Motors Inc. - Key offerings
- Exhibit 99: Lithia Motors Inc. - Segment focus

11.12 Penske Automotive Group Inc.
- Exhibit 100: Penske Automotive Group Inc. - Overview
- Exhibit 101: Penske Automotive Group Inc. - Business segments
- Exhibit 102: Penske Automotive Group Inc. - Key news
- Exhibit 103: Penske Automotive Group Inc. - Key offerings
- Exhibit 104: Penske Automotive Group Inc. - Segment focus

11.13 Sonic Automotive Inc.
- Exhibit 105: Sonic Automotive Inc. - Overview
- Exhibit 106: Sonic Automotive Inc. - Business segments
- Exhibit 107: Sonic Automotive Inc. - Key offerings
- Exhibit 108: Sonic Automotive Inc. - Segment focus

11.14 Vroom Inc.
- Exhibit 109: Vroom Inc. - Overview
- Exhibit 110: Vroom Inc. - Business segments
- Exhibit 111: Vroom Inc. - Key offerings
- Exhibit 112: Vroom Inc. - Segment focus

12 Appendix

12.1 Scope of the report

12.2 Inclusions and exclusions checklist
- Exhibit 113: Inclusions checklist
- Exhibit 114: Exclusions checklist

12.3 Currency conversion rates for US$
- Exhibit 115: Currency conversion rates for US$

12.4 Research methodology
- Exhibit 116: Research methodology
- Exhibit 117: Validation techniques employed for market sizing
- Exhibit 118: Information sources

12.5 List of abbreviations
- Exhibit 119: List of abbreviations

Methodology

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

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

What are the key global market and the regional market share?
What are the revenue-generating key market segments?
What are the key factors driving and challenging this market’s growth?
Who are the key market vendors and their growth strategies?
What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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