Japan Used Car Market Size (2024 - 2029)

Japan Used Car Market Analysis

Currently, the Japanese Used Car Market is valued at USD 62.6 billion, and it is expected to reach USD 84.9 billion in the next five years, projecting a CAGR of 6.28% during the forecast period.

The Japanese used car market witnessed a significant dip due to the COVID-19 outbreak and subsequent lockdowns. Although the slump was not as significant when compared to the new car sales due to the buyer's reluctance and lower disposable cash in hand for new vehicle purchases, now, as life comes to normalcy, the market is expected to gain back its pace in the following years. The pandemic made owning a car an unavoidable aspect of an individual's life, as traveling via public transport was risky. People who preferred public transport during the pre-COVID-19 times are now potential customers of the used cars market.

Due to the increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the Japanese Used Car Market is expected to witness significant growth. Furthermore, the rise in the value-added service offerings and the variety of finance providers offering credit for used cars are expected to contribute to the growth of the used car market in the region. However, the higher interest rates may turn away some potential customers, thus hampering the market's growth.

Factors, such as the rise in income levels, increasing demand for luxury cars, shorter car ownership periods, booming import-export, and a growing preference for two-wheeler owners to upgrade to small and compact cars, also drive the growth of the market.

Consumers in the country appear to prefer used cars not only because they are less expensive, but also because many of the new vehicles on the market are still relatively new - between three and seven years old - and in good shape, making them highly feasible possibilities to explore.

Additionally, better value-added services provided by online used car trading platforms over the conventional used car selling methods have significantly attracted buyers toward the used car market. These value-added services provide peace of mind to the customers and aid in the growth of the Japanese used car market.

Japan Used Car Industry Segmentation

Any vehicle that has previously been owned and is being resold through private sellers, classified ads, or local dealers without undergoing a significant vehicle inspection by an expert is considered to be a used car.

The Japanese Used Car Market is segmented by Vehicle Type (Hatchback, Sedan, Sport Utility Vehicle (SUV), and Multi-purpose Vehicle (MPV)), by Booking Channel (Online, OEM Certified/Authorized Dealerships, and Multi-Brand Dealerships), and by Transaction Type (Full Payment and Finance). For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).