The global used car market is experiencing a rapid surge, propelling its value from $896 billion in 2022 to an anticipated $1.5 trillion by 2028, driven by a compound annual growth rate (CAGR) of 9.1% during 2023-2028. This growth trajectory is attributed to the increasing urban population and the escalating need for personal mobility, particularly in emerging economies. Affordability, a crucial factor, makes used cars a favored choice, attracting price-sensitive consumers. Online platforms and mobile applications have significantly simplified the buying and selling processes, enhancing accessibility, comparison, and convenience for consumers worldwide.
The transition to used cars is also fueled by the availability of flexible financing options, making them more accessible to a broader audience. The environmental benefits of opting for used vehicles have also gained traction, as they lower carbon footprints by reducing the demand for new manufacturing. Governments’ supportive policies and tax incentives are further incentivizing the shift towards sustainable mobility solutions. Certified pre-owned programs introduced by original equipment manufacturers (OEMs) boost consumer confidence and assure quality.
The used car market is segmented based on vehicle type, vendor type, fuel type, sales channel, and region. Additionally, the rise of digital platforms has revolutionized the industry, providing tools for valuation, financing, and even home delivery. The report underscores that the move towards used cars stems from practical considerations rather than solely moral ones. With a growing focus on functionality over novelty and the increasing popularity of environmental responsibility, the used car market is poised for a promising future with continuous growth and innovation.