NEW
YORK, Oct. 7, 2024 /PRNewswire/ -- Report with
the AI impact on market trends - The Used Car Market in US
size is estimated to grow by USD 41.9
billion from 2024-2028, according to Technavio. The market
is estimated to grow at a CAGR of 4.6% during the
forecast period. Excellent value for money proposition of Used
Cars is driving market growth, with a trend
towards increased penetration of websites dedicated to selling
used cars. However, stringent emission regulations to restrict
sales of non-compliant used cars poses a challenge - Key
market players include Asbury Automotive Group Inc., AutoNation
Inc., CarMax Inc., Carvana Co., General Motors Co., Group 1
Automotive Inc., Hendrick Automotive Group, Hertz Holdings Inc.,
Lithia Motors Inc., Penske Automotive Group Inc., Sonic Automotive
Inc., and Vroom Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Distribution Channel
(Third-party channel sales and OEM channel sales), Product (Mid
size, Full size, and Compact size), and Geography (North
America)
|
Region
Covered
|
US
|
Key companies
profiled
|
Asbury Automotive Group
Inc., 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., and Vroom Inc.
|
Key Market Trends Fueling Growth
The Internet's expansion in the US has led to an efficient
online marketplace for used cars. Websites like AutoNation.com
enable buyers to purchase used cars online, reaching a larger
audience. Sellers benefit from this platform, while websites offer
additional services and discounts. After-sales services are
available at discounted rates or for free. AutoNation.com even
allows buyers to exchange their old cars for a discount on a new
purchase. This convenience and the availability of crucial vehicle
information will fuel the growth of the US used car
market.
The used car market in the US is witnessing significant trends.
Conventional vehicles continue to dominate, but CNG powered and
diesel vehicles are gaining traction. Mid-sized and compact SUVs
are popular choices for price-sensitive buyers. Offline and online
retailing are growing, with digital retailing and AI applications
streamlining the buying process. Sustainability is a key concern,
with vehicle certification and emissions a focus. OEMs, dealers,
rental car agencies, and leasing offices are embracing inventory
pooling and value-added services. Depreciation is a challenge for
luxury vehicle owners, but car subscription services offer an
alternative. Urbanization and the telecom industry are driving
online transactions. Unorganized businesses must comply with BS6
norms and emissions regulations. Financing, warranties, and
maintenance plans are essential for used car buyers. Pre-owned and
second-hand cars remain in demand, with resale value and ownership
duration crucial factors. Overall, the automotive industry trends
favor digitalization and sustainability.
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Market Challenges
- The Environmental Protection Agency (EPA) in the US has
implemented stricter emission norms for passenger cars and
commercial vehicles due to increasing air pollution concerns. These
new regulations will impact the used car market as many vehicles on
the road will be non-compliant. Older cars, particularly pickup
trucks, contribute significantly to vehicular emissions, which can
cause health hazards due to harmful gases. New vehicles come with
advanced emission control systems that adhere to the latest EPA
standards. Given that the average car lifecycle is 2-5 years, these
new regulations have been implemented within this period, making
used cars non-compliant. Pre-2012 EPA standards were less stringent
compared to the current ones. As a result, the EPA may impose
stringent testing and re-registration protocols for used cars,
potentially restricting sales and negatively affecting the used car
market's growth.
- The used car market in the US is a significant business sector,
encompassing various sales channels such as auctions and private
party sales. Prices in this market can vary, with some dealers
offering "no haggle" prices, while others may use certified
pre-owned vehicles to assure customers. Extended service agreements
and advanced vehicle features like power steering, climate control,
and anti-lock brakes add value. Flexibility is key, with
tech-enabled options, automotive performance tracking, smartphone
applications, and internet connectivity becoming standard. However,
high depreciation rates and price sensitivity in certain areas pose
challenges. Flexible financing alternatives cater to various
customer needs. The dealership network, online sales, and auto
marketplaces provide affordability and personal mobility solutions.
Automobile manufacturers and franchise dealers offer organized
options, while unorganized sales and used passenger cars dominate
the unfranchised market. The rise of electric and hybrid vehicles
adds complexity, requiring customer intelligence and
adaptability.
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driving growth- Download a Sample Report
Segment Overview
This used car market in US report extensively covers market
segmentation by
- Distribution Channel
- 1.1 Third-party channel sales
- 1.2 OEM channel sales
- Product
- 2.1 Mid size
- 2.2 Full size
- 2.3 Compact size
- Geography
1.1 Third-party channel sales- The used car
market in the US is a significant sector, with numerous buyers and
sellers engaging in transactions daily. Dealerships and private
sellers offer various makes and models, ensuring a diverse
inventory. Prices vary based on factors like vehicle condition,
age, and location. Buyers can research extensively using online
resources, compare prices, and inspect vehicles before purchasing.
The market's size and competition ensure potential for competitive
pricing and a wide selection.
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gain insights into AI's impact on market dynamics, emerging trends,
and future opportunities- including forecast (2024-2028) and
historic data (2018 - 2022)
Research Analysis
The used car market in the US is a significant sector of the
automotive industry, catering to the demand for personal mobility
solutions that are more affordable than new vehicles. The market is
served by a vast dealership network, both physical and online,
including auto marketplaces and e-commerce platforms. Used
passenger cars, off-lease vehicles, and certified pre-owned
vehicles are popular choices, with various options available for
luxury vehicles and second-hand cars. Factors like depreciation,
ownership duration, and resale value influence the used car market.
The rise of car subscription services and online retailing, coupled
with urbanization and the telecom industry's advancements, have
transformed the landscape. Used car owners, vehicle dealers, rental
car agencies, leasing offices, auctions, and private party sales
are integral parts of this dynamic market. No haggle prices,
extended service agreements, and certified pre-owned vehicles add
value for consumers, making the used car market a vital contributor
to personal mobility solutions.
Market Research Overview
The used car market in the US is a significant sector of the
automotive industry, catering to the needs of price-sensitive
buyers looking for affordable personal mobility solutions. The
market is characterized by a diverse range of offerings, including
used passenger cars, SUVs, mid-sized and compact vehicles,
electric, hybrid, conventional, CNG-powered, and diesel models. The
market is served through both organized and unorganized channels.
Organized channels include dealership networks, franchise dealers,
and auto marketplaces, while unorganized channels include private
party sales and auctions. The rise of digital retailing and online
sales has transformed the used car market, enabling customers to
buy and sell vehicles online with ease. Key trends in the used car
market include the increasing popularity of SUVs, flexibility in
financing and ownership duration, advanced vehicle features, and
tech-enabled options. The market is also influenced by automotive
industry trends, such as sustainability, emissions, and
environmental concerns, with a shift towards electric and hybrid
vehicles. Used car owners can benefit from value-added services
such as financing, warranties, maintenance plans, and extended
service agreements. The market is also influenced by global
technology standardization, advanced vehicle performance tracking,
and smartphone applications. Despite high depreciation rates,
flexible financing alternatives make used cars an attractive option
for many consumers. Urbanization and the telecom industry have also
played a role in the growth of the used car market, enabling online
transactions and digital retailing.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Distribution Channel
-
- Third-party Channel Sales
- OEM Channel Sales
- Product
-
- Mid Size
- Full Size
- Compact Size
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio