The global used vehicle market is expected to rise at a strong 5.3% CAGR over the forecast period from 2018 to 2025, according to the latest research report from Market Research Future (MRFR). The global used vehicle market is mainly driven by the growing demand for low-cost fleet vehicles, as used vehicles offer the perfect solution for these customers.
The growing demand for fleet cars that don’t cost a fortune is likely to be a key driver for the global used vehicle market over the forecast period. The growing disposable income of the poorer classes is also likely to be a major driver for the global used vehicle market, as impoverished consumers prefer buying second-hand vehicles that run well rather than spending much more on a brand new vehicle.
The growing Internet penetration in the key markets for used vehicles is also likely to be a major driver for the global used vehicle market over the forecast period. The easy availability of Internet channels to contact sellers and buyers has allowed the global used vehicle market to gain some structure in recent years, which has been a transformative change for the global used vehicle market. Previously, the sale of used vehicles was almost exclusively carried out through unlicensed dealers or through in-person meetings between the buyer and seller. The availability of the Internet allows used vehicle dealers and sellers to provide easy access to customers. This is likely to be a key driver for the global used vehicle market over the forecast period.
Leading players in the global used vehicle market include Vroom Inc., Autonation, TrueCar Inc., PenskeCars, eBay, Alibaba Group, Sun Toyota, Cox Automotive Inc., Hertz Car Sales, Autotrader Inc., Manheim, and CarMax Business Services LLC.
In April 2019, Penske announced plans to add four more used vehicle stores in the U.S. and the UK. The company’s sales volume of used vehicles is expected to increase by almost 30% in 2019, having risen by 75% in 2018 over 2017 figures.
The global used vehicle market is segmented based on vehicle age, vehicle type, propulsion, sales channel, and region.
On the basis of vehicle age, the global used vehicle market is segmented into 0-5, 6-10, 11-15, 15-20, and >20 years old.
On the basis of vehicle type, the used vehicle market is segmented as passenger cars, light commercial vehicles, and heavy commercial vehicles.
On the basis of propulsion, the market is segmented as internal combustion engine (ICE) and electric vehicle (EV); the electric vehicle segment is further sub-segmented into battery EV, plug-in EV, and hybrid EV.
On the basis of sales channel, the global used vehicle market is segmented into franchised, independent car dealers, rental car companies, and others.
The global used vehicle market is segmented by region into North America, Europe, Asia Pacific, and rest of the world. Asia Pacific is likely to dominate the global used vehicle market over the forecast period due to the growing automotive industry in the region and the strong presence of economic inequalities in countries in the region, which has created two distinct consumer demographics, one buying new cars and the other buying used ones. The growing production of SUVs by regional automotive manufacturers in Asia Pacific is also likely to be a key driver for the used vehicle market in Asia Pacific, as SUVs and other 4WD vehicles are among the leading revenue generators for the used vehicles market. The increasing penetration of the Internet in Asia Pacific has served the used vehicle market well and is likely to remain one of the leading drivers for the market over the forecast period.
North America is the second largest regional market for used vehicles and is likely to retain a significant share due to the presence of several used vehicle market players and the growing demand for used vehicles in the region.
Emerging economies in Latin America and the Middle East could also play a crucial role in the global used vehicle market’s growth over the forecast period, as the low disposable income of consumers in these regions has driven the demand for used vehicles rather than new vehicles.
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