Market Size of US Used Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 7.51 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Used Car Market Analysis
The US Used Car Market is expected to register a CAGR of 7.51% during the forecast period.
The market was valued at USD 195.84 billion in 2021, and it is projected to reach USD 302.47 billion by 2027.
The outbreak of the COVID-19 pandemic has caused significant disruption in the automotive industry. Consumers are likely to choose private transportation in the wake of the pandemic. However, financial discrepancies are likely to obstruct the buying of new vehicles, and commuters are expected to opt for secondhand cars due to economic concerns. Furthermore, during this pandemic period, virtual reality, online, or digitally generated sales leads purchase new autos.
Since the pricing competition among new market players and the unavailability of a substantial share of customers to purchase a new car, the market for used cars has grown significantly in recent years. Furthermore, industry participants in the used vehicle market are strengthening their dealership network through investment in various states in order to capture a large number of customers in that country and establish their market position. These dealership networks assist industry participants in establishing brand recognition and making used car options viable, primarily for the middle-class population.
The used car dealer is dependent on the seller because the dealer cannot obtain the vehicle to serve their consumers until the owner sells it in the market. If new car sales fall, the market will run out of supply after a while. This may hamper the market growth over the forecast period.
US Used Car Industry Segmentation
A used car is one that has previously been owned by one or more retail owners. It is also known as a pre-owned vehicle or a secondhand car. Used automobiles are sold in a variety of locations, including franchise and independent car dealers, rental car firms, buy here pay here dealerships, leasing offices, auctions, and private party sales.
United States Used Car Market has been segmented by vendor type, fuel type, body type, and sales channel.
United States Used Car Market has been segmented by vendor type, fuel type, body type, and sales channel. By Vendor type, the market is segmented into Organized and Unorganized. By Fuel Type, the market is segmented into Petrol, Diesel, and Others. By Body Type, the market is segmented into Hatchback, Sedan, and Sport Utility Vehicle and Multi-Purpose Vehicle. By Sales Channel, the market is segmented into Online and Offline. The report covers the market size and forecast in value (USD Billion) for all the above segments.
| Vendor Type | |
| Organized | |
| Unorganized |
| Fuel Type | |
| Petrol | |
| Diesel | |
| Electric | |
| Others |
| Body Type | |
| Hatchback | |
| Sedan | |
| Sports Utility Vehicle and Multi-Purpose Vehicle |
| Sales Channel | |
| Online | |
| Offline |
US Used Car Market Size Summary
The US used car market is experiencing significant growth, driven by a shift in consumer preferences towards private transportation and economic considerations that make secondhand vehicles more appealing. The COVID-19 pandemic has accelerated this trend, as financial constraints have led many consumers to opt for used cars instead of new ones. The market is characterized by a competitive landscape, with new players entering and strengthening their dealership networks to capture a larger customer base. These networks are crucial for establishing brand recognition and making used cars more accessible, particularly to the middle-class population. Technological advancements, such as the expansion of online booking and e-commerce platforms, have further facilitated market growth by providing consumers with easy access to used car options.
The market is highly fragmented, with a mix of organized and unorganized dealers, and is seeing a rise in online sales as a key growth driver. Companies like CarBravo and AutoNation are expanding their presence through new store openings and innovative shopping experiences, while platforms like TrueCar are enhancing their offerings with home delivery services. The focus on affordability, personal mobility, and the convenience of online transactions has led to increased demand for used cars. Despite the challenges posed by a potential supply shortage if new car sales continue to decline, the market remains robust, with prominent players forming partnerships and leveraging technology to maintain a competitive edge.
US Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters 5 Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Vendor Type
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2.1.1 Organized
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2.1.2 Unorganized
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2.2 Fuel Type
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2.2.1 Petrol
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2.2.2 Diesel
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2.2.3 Electric
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2.2.4 Others
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2.3 Body Type
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2.3.1 Hatchback
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2.3.2 Sedan
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2.3.3 Sports Utility Vehicle and Multi-Purpose Vehicle
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2.4 Sales Channel
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2.4.1 Online
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2.4.2 Offline
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US Used Car Market Size FAQs
What is the current US Used Car Market size?
The US Used Car Market is projected to register a CAGR of 7.51% during the forecast period (2024-2029)
Who are the key players in US Used Car Market?
CarMax, Inc., CarBravo, Carvana Co., AutoNation Inc. and Sonic Automotive are the major companies operating in the US Used Car Market.
