Global Used Cars Market 2024-2030

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    USED CARS MARKET

     

    INTRODUCTION TO THE USED CARS MARKET

     

    Used Cars have been of major importance in recent years with the pandemic affecting the basic lifestyle and buyable range of various consumers in terms of reference towards automobile sales.

     

    Used cars are more preferential for new or first-time buyers of automobiles in various regions of the world as this helps in inculcating the required User-drive experience which would have a positive impact on a long-term usage time frame.

     

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    The development of the Internet has changed the power struggle between dealers and consumers in terms of requirements towards the User cars segment of the European Nations.

     

    Buyers can now potentially gain the upper hand. Customers are increasingly knowledgeable about cars, their quality, residual value, prices applied,  finance charges,  availability, and, more and more frequently,  the exact profit margin that the dealer makes in closing a deal.

     

    To learn more about Used Car Market in the US, read our report

     

    The most important success strategy in  the used car business is the development of trust-inducing  initiatives such  as  certified used vehicle  programs. 

     

    These programs provide  the best protection against channel competition and allow dealers  to improve margins significantly while offering an additional source of revenue for OEMs.

     

    To learn more about Europe’s Used Cars Market, read our report

     

    USED CARS MARKET DEVELOPMENTS AND INNOVATIONS

     

    S No Overview of Development Development Detailing Region of Development Possible Future Outcomes
    1 Ola unveils used cars marketplace Ola Cars Multinational ridesharing company Ola has unveiled a used cars marketplace known as ‘Ola Cars’ which will offer “try and buy” services from home, EMI options, and a one-year warranty. Ola Cars will help users in buying and selling second-hand cars on their platform. This comes at a time when there is a huge demand for buying and selling second-hand cars. India This would enhance better availability and affordability.
    2 Second-hand car sales soar amid shortage of new models The increase in sales tracked the country’s easing of Covid restrictions, with demand rising as businesses reopened. Ford Fiestas, Vauxhall Corsas, Ford Focuses and Volkswagen Golfs were the most popular models, with black, silver, blue and grey being the most common colour choices. USA This would enhance better Used car market domination.

     

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    USED CARS MARKET DYNAMICS

     

    SI No Timeline Developments
    1 Q4-2021 Increased app and web based channels online in the used cars segment are attracting young people to adopt used cars for affordable prices and the sales surged after the pandemic due to rise in new vehicle prices according to the CARS24 statement.
    2 Q4-2021 Used cars market is experiencing high demand since the starting of the pandemic in South Africa due to new cars can’t meeting the market and microchip shortage.
    3 Q1-2021 European used cars marketplace Carvago.com from Prague, Czech Republic expanded its business to Italy, Germany and Poland to become the largest seller of used vehicles in Europe. Carvago also offers financing, 12-month guarantee and the return of cars within 14 days. Q4
    4 Q1-2021 German-based Audi opened its new used cars showroom Audi Approved: plus in Bhubaneswar, India. The new outlet is built in 4,500 sqft to sell pre-owned luxury cars due to increased demand in the market.

     

    In the past, vehicle manufacturers and dealers have preferred to omit used automobiles from their operations, believing that the focus of dealers’ sales efforts should be on new cars, which have higher price tags and are targeted at richer consumers.

     

    Aiming to push new automobile inventories to the market with suitable incentives has been a goal of dealers and original equipment manufacturers (OEMs).

     

    Dealers’ bottom lines, on the other hand, have benefited more from the sale of used vehicles than from sales of higher-status new cars.

     

    As used automobile quality and dependability have improved, a loyal client base has been created. Because of this, automakers began to recognise the importance of used vehicle management in increasing residual values, new car sales, and manufacturing.

     

    The used car market is most active in the European Union Nations,  France, and the UK. In these markets, the used car  business generates considerable  economic income.

     

      In contrast,  the used car market  is weaker in Canada, Japan, and Spain. In  Europe dealers  have  experienced high  rates  of consolidation,  largely due  to  the  Block Exemption legislation,  which came into  effect in  2002.

     

      Sources indicate that  the number  of  franchised dealer sales outlets in  France declined by about  17%, while the number  of  German outlets  declined  by approximately  18%.

     

    The European used car market generated total revenues of $268.3 billion in 2007 with a generation of total sales  volume  of  16.3 million units, equivalent to 56.8% of the market’s overall volume.

     

    But in the recent year, there has been a blockade placed upon the Manufacturer dealer networks in both Europe and North America  have experienced consolidation in recent years, a process that has been historically characteristic of the automotive industry and is likely to continue.

     

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    The Other main agenda of development for used cars within the market has been through the auction on platforms of varied levels.

     

    Used car sales  via auctions are  mainly  developed in England  which used to be part of the European Union till January 2021 and to  a  smaller degree in  Germany  and  Holland and are  emerging  in other  countries.

     

    Organised sector to account for 35% share of India’s Used car market by 2026. ​​​​​​​

     

    While new car sales scale record highs in India, the other bright spot is the pre-owned passenger vehicle business which is seeing accelerated growth as a result of the shift in consumer mindset and enhanced transparency enabled by the organised sector.

     

    There are several reasons why the Used car industry will continue to remain a sunrise sector.

     

    While the Covid-19 pandemic was instrumental in driving demand for the sector as a result of the consumer preference for personal mobility, other factors like the growing number of established OEMs in the business, increased inventory levels, wide choice of new-generation vehicles across segments along with warranty, and customer-friendly digitalisation which has delivered enhanced transparency and trust, have powered recent growth.

     

    What further enhances the Used car buyer’s peace-of-mind quotient is the rigorous vehicle quality checks, evaluation, refurbishment and certification process undertaken by the organised sector.

     

    Given the rapid pace of growth in the Used car sector and the marked shift in consumer mindset towards the more transparent nature of operations – from initial enquiry through to Urethane Automotive purchase – the organised sector, including digital-platform sales, can only expect to achieve speedier growth in the coming years.

     

    Car market leader Maruti Suzuki India drove into the Used car market with its ‘True Value’ business vertical. Maruti True Value, whose all-India network currently stands at 559 outlets spread across 277 cities and is the largest in the country, has since sold over 4 million cars and counting. 

     

    At present, potential buyers are compelled by high prices of new cars, which is the result of various factors like material cost hikes and regulatory changes, among others. Most of the primary buyers today are fulfilling their desire of owning a vehicle with used cars.

     

    Typically, replacement car buying used to be 26-30 percent of overall sales before the pandemic. However, it fell drastically to 15-16 per cent during Covid-19 as people held onto their new cars. Last year, this segment saw a revival and reached almost 23 per cent.

     

    The Used car segment witnessed a trying demand-supply scenario during the two years of the pandemic. As a result of the increased need for personal mobility across the country, the demand for used cars shot up and supply fell sharply in the absence of a replacement cycle.

     

    The new era demands transparency and openness in business, which can only come from digital platforms and thereby create an organized atmosphere.

     

    Therefore, data is something which is going to be extremely critical to measure how things are today and how they will shape up going forward.

     

    USED CARS MARKET SEGMENTATION

     

    The Global Used Cars Market can be segmented into the following categories for further analysis.

     

    Used Cars Market By Product Re-Usage

    • Remanufacturing Process
    • Scraping
    • Rental Services
    • Showcasing and Museum Purposes
    • Re Buying Purposes

     

    Used Cars Market By Product Sales Conveyance

    • Online Sale
    • TV Marketing
    • Social media Marketing Platform
    • Online Auction
    • Platform-based sales – OLX etc.
    • Direct Purchase

     

    Used Cars Market By Regional Classification

    • Asia Pacific Region – APAC
    • Middle East and Gulf Region
    • Africa Region
    • North America Region
    • Europe Region
    • Latin America and Caribbean Region

     

    RECENT TECHNOLOGICAL TRENDS IN THE USED CARS MARKET

     

    SI No Timeline Company Developments
    1 Q3-2021 Auto Scout24 Auto Scout24 from Germany announced its new digital retail service for used cars, Smyle and the AutoScout24 also offers 10 minutes delivery of used cars to the customers in Germany which are insured, financed and registered.
    2 Q3-2021 Auto Scout24 Auto Scout24 introduced a new feature in Italy marketplace website AutoScout24.it, that users can create ads after entering the license plate, car details, price and specifications.
    3 Q4-2021 CARS24 CARS24 to set up a new massive seven-service center by the year-end with an investment of INR 9 crore each which reduces the time of reconditioning of cars and also for the faster deployment of used cars.
    4 Q2-2021 ADESA ADESA, used cars marketplace and technology solutions provider launched Off lease exclusive in it’s website as a new filtering and search functionality which enables buyers to identify fresh vehicles in off lease exclusive inventory.

     

    The used vehicle market has grown in size and importance in the past decade and is positioned to continue to do so in the future.

     

    A successful used vehicle  strategy on the part of automakers  and dealers is becoming essential to their operations and is increasingly recognized as such.

     

    There have been some core strategies being implemented that  are essential for  growing dealers’ used vehicle sales in the European Market in recent years which include Continually improve  the  customer experience,  from the  Internet  to the showroom, rationalising customer relationships through  CRM,  perfect online  promotion  and merchandising efforts to  reach prospects  and existing customers,  manage inventory and pricing with network-wide IT solutions, maximize high-margin sales opportunities, optimize certified used vehicle programs.

     

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    The Recent integration of technology has to be followed alongside the integration of a branded OEM Dealership to have a better notion of the complete market operability in terms of increased sales in European markets.

     

    There has been a focus placed on having this value-added service integrated into the used cars market of the Union.

     

    The urban customers would have better saviours towards the OEM-affiliated branded dealerships. The internet portals did not have a visible share.

     

    It looks like the customers looked at the information on the internet but concluded the transaction at a physical dealership.

     

    It must also be said that the identification of a customer who transacted in a conventional dealership as opposed to a web portal is relatively lower when integrated directly into a non-branded platform dealership. It is, therefore, likely that there is a certain amount of bias away from the buyers on the internet.

     

    USED CARS MARKET NEW ACQUISITION

     

    KAR Auction Services, Inc., a prominent operator of wholesale used automobile internet markets, has completed the $450 million cash acquisition of CARWAVE Holdings LLC (“CARWAVE”).

     

    The acquisition builds on KAR’s rapid development in the dealer-to-dealer segment, accelerates profitability, prepares the company to accomplish long-term goals, and strengthens the company’s unique blend of digital markets and physical networks.

     

    This acquisition strengthens the competitive position and improves profitability throughout the dealer-to-dealer offerings by adding a premier digital platform on the West Coast to the dealer-to-dealer segment.

     

    With the addition of CARWAVE to its popular digital marketplaces, such as ADESA and BacklotCars, as well as its extensive network of vehicle logistics facilities, can meet the demands of dealers in any market at any time.

     

    CARWAVE was created in 2009 in California and now services franchise and independent dealers in California, Arizona, Nevada, Oregon, and Texas.

     

    Dealers can easily wholesale trade-ins and older frontline units directly from their lot, and swiftly acquire new inventory from anywhere, thanks to the web platform.

     

    Despite the fact that the companies have begun actively merging, neither company’s product offerings, price, or client agreements will alter immediately.

     

     

    USED CARS MARKET NEW LAUNCH

     

    Re-AL, an online marketplace for old commercial vehicles, was introduced by Ashok Leyland. The Hinduja Group’s Ashok Leyland, the company’s flagship, announced on Saturday the opening of an online marketplace for used commercial vehicles called “Re-AL.”

     

    This platform is made to make it easier for clients to trade in their old cars for Ashok Leyland trucks or buses, simplifying upgrades. The used commercial vehicle market is primed for change.

     

    They have numerous potential to offer solutions that are focused on serving customers by leveraging our digital platform,” The city-based maker of heavy commercial vehicles said in a statement that it wanted to increase the ecosystem’s lack of organization and openness. 

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    Customers will have access to several services through the digital service, including validated documentation and the option to select their preferred vehicles.

     

    Asok Leyland emphasized the significance of the used car business as a key focus area, saying that this used vehicle e-marketplace solution marks a significant milestone in their digital transformation path.

     

    They claimed that this market segment gives clients the chance to resell their cars for more money. They think this online marketplace would improve the overall experience for customers when they trade in their old cars for brand-new Ashok Leyland trucks and buses.

     

    USED CARS MARKET NEW PRODUCT LAUNCH

     

    Launch of an online marketplace for second-hand commercial vehicles by Ashok Leyland The brand is making an effort to promote openness in the used-car market.

     

    The flagship company of the Hinduja Group, Ashok Leyland, has opened an online marketplace for second hand commercial vehicles.

     

    According to a statement from the business, it will assist customers in trading in used cars and upgrading to brand-new trucks and buses.

     

    The market for old commercial vehicles is primed for change. There are numerous of potential for them to offer customer-centric solutions by leveraging their digital platforms.

     

    We will be able to significantly improve the customer life cycle thanks to this used automobile e-marketplace solution, which represents a critical turning point in their digital transformation path.

     

    They place a lot of emphasis on the used car market since it allows their clients to sell their cars for more money.

     

    They believe that by adding a level of comfort and openness to the exchange process and thereby fostering trust, this online marketplace would improve the overall customer experience when customers trade in their old cars for brand-new Ashok Leyland trucks and buses.

     

    Customers will have access to several options on this online marketplace to find their ideal autos with ease. To liquidate their vehicles, sellers might also list them.

     

    The advent of this electronic marketplace, according to a statement made by the maker of heavy-duty commercial vehicles, is meant to improve the used-car market’s existing disarray.

     

    Customers will be given access to certified documents through the digital service as well as several tools to help them choose the vehicle they want.

     

    As it enables customers to dispose of their automobiles with a higher resale value, the used vehicle industry is a crucial emphasis area.

     

    CarBravo, a brand-new approach to looking for used cars, was introduced by General Motors. By providing used-vehicle customers with access to a sizable inventory, an omnichannel shopping experience, and exclusive ownership perks, CarBravo will elevate the shopping, buying, and ownership experience.

     

    Customers will have additional options thanks to CarBravo, which will provide them access to a vastly increased selection of GM used cars from both the dealer and a central national stock. Additionally available on non-GM second hand cars is an important aspect of the programme.

     

    Additionally, CarBravo will provide a smooth consumer experience via GM’s new digital retail platform (DRP).  A clear dealer pricing structure, vehicle history reports, and 360-degree views of the vehicle are just a few of the features that the DRP’s shopping interface will offer.

     

    To satisfy the criteria established by GM, all CarBravo vehicles will undergo inspection and maintenance. Even if they do not acquire a vehicle through CarBravo, customers can obtain assured online offers from the industry standard Black Book to buy their vehicles. 

     

    To deliver a flexible, contemporary shopping and purchasing experience, CarBravo makes use of GM Financial, GM’s assets, and the GM dealer network. In cases where participating dealers offer them, customers can also benefit from house delivery and test drives. 

     

    A wide range of ownership benefits, such as roadside assistance, courtesy transportation, and OnStar and SiriusXM trials on qualified vehicles1, are included with CarBravo as standard warranty coverage on all vehicles, a vast nationwide network of dealerships for service and maintenance, and a built-in nationwide network of dealerships.

     

    Ford and its dealers have worked together to develop a used car digital marketplace that offers customers the best and most comprehensive selection of Ford-certified pre-owned cars and the option to shop online or in-person. 

     

    The user-friendly online store satisfies consumer desire for a hassle-free buying experience by offering the largest and broadest variety of pre-owned Ford cars and trucks available whenever and wherever all backed by a Ford guarantee.

     

    Users of Ford Blue Advantage can narrow their searches using advanced search features such as feature level, at-home test drive preference, or video walkaround preference. According to research, consumers spend 10 to 12 hours per visit online looking for a used car.

     

    They can now more quickly than ever match the ideal customer with the ideal pre-owned Ford car.  Offering a fantastic digital experience is crucial, but they also recognise that people still prefer to touch, smell, and feel a car before they buy it.

     

    With Ford Blue Advantage, customers may purchase online, in-person, or a mix of the two, giving them the best of both worlds. Ford is partnering with Cox Automotive’s Autotrader to fuel its digital platform.

     

    The partnership will take advantage of the company’s patented relevance algorithm and search technologies to give customers a simple user experience.  At Cox Automotive, they are firm believers that a fully integrated dealer, consumer, and manufacturer network is essential for the success of the automotive sector.

     

    USED CARS MARKET RECENT DEVELOPMENT

     

    S No Company Name Development
    1 Sterilants One of the two predecessor businesses that merged to establish Stellantis, the PSA Group of France, introduced the Spoticar program for its European dealer network. Individual and corporate customers in 11 countries could browse a variety of PSA-brand automobiles for sale on this online used car sales platform.
    2 GM The used vehicle inventory across all participating GM dealerships as well as used vehicles owned by GM and its financial arm, GM Financial, will be listed on the website CarBravo, which was unveiled by GM. 

     

    Stellants debuted in the UK two years after that, and now, two years later, it’s debuted in the United States. Imagine it as a Certified Pre-Owned (CPO) program for Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram products; Maserati is the only business brand not included. 

    When used in a large sensing area, this sensor is effective at detecting human mobility by measuring body temperatures. Security tools, wireless gadgets, building supplies, industrial machinery, and energy-efficient household appliances are just a few examples of typical applications.

     

    GM Customers will have more options and access to much larger dealer and national central inventories of GM used cars thanks to CarBravo. Importantly, non-GM-used cars will also be able to purchase the program’s features. Customers may order a car from participating GM dealerships online or locate a local GM dealership to make their purchase in person.

     

    USED CARS MARKET COMPETITIVE LANDSCAPE

     

    SI No Timeline Company Developments
    1 Q4-2021 Spinny Spinny sales increased more than 200% and sold 7800 cars compared with 3300 cars in 2020 same period. The company sells more than 2000 cars per month.
    2 Q4-2021 Volkswagen India Volkswagen India opened it’s used cars showroom Das Welt in 2012 and sold 10,000 used cars in the previous and the company will double its sales this year due to increased demand.
    3 Q4-2021 Spinny Online used cars marketplace Spinny, an Indian startup raised $285 million in series E funding from Tiger Global and other investors to turn into a unicorn with a valuation of $1.8 billion.
    4 Q4-2021 Ola Ola raised $139 million with a $7.3 billion valuation from Edelweiss and other investors. Ola also filed for IPO in the first half of 2022.
    5 Q4-2021 Pendragon UK based automotive retailer Pendragon’s used cars sales increased from 55 million pounds to 60 million pounds in October 2021, the sales surged after lifting lockdowns and expected net profits of 80 million pounds in the year end.
    6 Q3-2021 CARS24 Indian used cars selling startup CARS24 raised $259 million in a $1.75 billion valuation from eight investors.
    7 Q4-2021 Ola Ola launched the used cars marketplace Ola cars after entering the electric scooter segment, and the Ola cars sold more than 1000 cars in the first week of November 2021 during the festival of Diwali with offers and discounts of more than one lakh. Ola sold more than 5,000 cars in its first month.

     

    Used automobile purchasers are increasingly turning to the Internet as a source of information. Consumers still utilise local media and word-of-mouth to investigate used car purchases, but they are increasingly turning to the Internet, underscoring the necessity of having a solid Internet strategy for used vehicle programmes in general.

     

    A growing number of dealers report that their Web operations have boosted sales and expanded their trading range, thanks to their increased attention to multi-channel communication techniques.

     

    There is a 50/50 joint venture between Turkish industry and service organisation and a U.S.-based supplier of used vehicle services to supply wholesale purchasers with Web-based second-hand automobile sales services.

     

    Turkish Borusan and U.S.-based Manheim have teamed together to develop a new service called Borusan Manheim. A global leader in used automobile sales, Manheim has operations in 17 countries.

     

     

    Cars24 has been one of the most advanced solution providers in the used car requirements. It’s like Uber / Ola (taxi aggregators), Zomato / Swiggy (restaurant aggregators), and Airbnb / OYO (hotel aggregators) (aggregators in the hospitality segment).

     

    All used vehicle dealers/brokers are gathered on a single online bidding platform. Price discovery is improved by dealer rivalry.

     

    It has been trying to expand its operations, so it makes sense to collaborate with big dealers, which are usually organised / semi-organized in nature. As a result, their bidding platform has a high share of organised / semi-organized dealers vs. unorganised dealers.

     

     

    THIS USED CARS MARKET REPORT WILL ANSWER THE FOLLOWING QUESTIONS ABOUT USED CARS MARKET

    1. Used Cars Market Size and Forecast, by region, by application
    2. Average B-2-B price for Used Cars Market, by region, per user
    3. Technology trends and related opportunities for new Used Cars Market tech suppliers
    4. Used Cars Market share of leading vendors, by region,
    5.  Coronavirus impact on Used Cars Market earnings
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
     
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