Used Car Market to Reach USD 3.1 Trillion by 2033

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Feb 3, 2025

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Introduction

The Global Used Car Market is projected to reach USD 3.1 Trillion by 2033, up from USD 1.7 Trillion in 2023, growing at a CAGR of 6.2% during the forecast period from 2024 to 2033.

The used car market refers to the trade of pre-owned vehicles, typically those that have had one or more previous owners, as opposed to new cars that are sold directly by manufacturers or dealerships. This market includes a wide variety of car models, from economy vehicles to luxury brands, and typically involves both dealerships and private sellers. Over the years, the used car market has gained significant traction due to a combination of economic factors, evolving consumer preferences, and technological advancements.

Growth in this market can be attributed to factors such as rising new car prices, longer vehicle lifespans, and the increasing demand for affordable, reliable transportation. Additionally, economic challenges, such as fluctuating fuel prices and inflation, have made consumers more inclined toward purchasing pre-owned vehicles as a cost-effective alternative to new cars. Demand for used cars is also driven by a growing preference for vehicles with advanced safety features and technology, which are often available at more affordable prices in the used car segment.

Used Car Market By Size

Moreover, the ongoing digitalization of car sales, with online platforms offering greater transparency and convenience, has unlocked significant opportunities in the used car market. As consumers shift toward more sustainable and value-oriented purchasing decisions, the market is poised for continued growth, with a forecasted increase in both volume and value. Opportunities also lie in the burgeoning segment of electric and hybrid used cars, as the push for environmental sustainability continues to shape consumer behavior.

Key Takeaways

  • The Used Car Market was valued at USD 1.7 trillion in 2023 and is projected to reach USD 3.1 trillion by 2033, growing at a compound annual growth rate (CAGR) of 6.2%.
  • In 2023, SUVs led the vehicle type segment, accounting for 48.4% of the market share, driven by the rising consumer preference for larger and more versatile vehicles.
  • Gasoline-powered cars dominated the fuel type segment in 2023, with a 63.4% share, attributed to the widespread availability and affordability of gasoline vehicles.
  • Franchised dealers led the sales channel segment in 2023, capturing 45.2% of the market. This dominance is driven by trusted brand names and the added value of warranty services.
  • Personal use accounted for the largest share in 2023, with 61.6%, driven by the increasing demand for convenient and cost-effective personal mobility solutions.
  • In 2023, the Asia-Pacific (APAC) region held the largest market share, with 38.3% and a market value of USD 0.65 trillion, supported by rapid urbanization and growing car ownership in emerging markets.

Used Car Statistics

  • UK Used Car Market: Over 80% of cars bought in the UK are used.
  • Australian Car Age: The average age of a car in Australia exceeds 10 years.
  • Preference for New vs. Used Cars in Australia:
    • Approximately 50% of Australian adults prefer a new vehicle.
    • Younger Australians, especially those aged 18 to 24, show a strong preference for used cars, with 85.7% in this age group opting for a used car.
  • Popular Vehicle Types in Australia:
    • Sedans: 30% of Australians prefer sedans.
    • SUVs: SUVs hold 25.8% of the market, gaining popularity quickly.
    • Hatchbacks: Dominating with 27.1% of the market share.
    • Other common vehicle types include 4×4, wagon, and UTE.

Report Scope

Report FeaturesDescription
Market Value (2023)USD 1.7 Trillion
Forecast Revenue (2033)USD 3.1 Trillion
CAGR (2024-2033)6.2%
Segments CoveredBy Vehicle Type (Hatchback, Sedan, SUV, Others), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Peer-to-peer, Franchised dealers, Independent dealers), By End-Use (Personal, Commercial)
Competitive LandscapeAlibaba.com, CarMax Enterprise Services, LLC, Asbury Automotive Group, TrueCar, Inc., Scout24 SE, Lithia Motor Inc., Group 1 Automotive, Inc., eBay.com, Hendrick Automotive Group, AutoNation.com

Key Segments Analysis

SUVs dominate the used car market with a 48.4% share, driven by their spaciousness, versatility, and consumer preference for safety features. Their appeal is further enhanced by improved fuel efficiency and the availability of compact and luxury models. While SUVs lead, other segments like hatchbacks, known for affordability and low maintenance, cater to first-time buyers and urban residents, while sedans offer comfort and fuel efficiency for families and professionals. The “others” category, including coupes, convertibles, and minivans, serves niche markets. Overall, SUVs remain the primary choice, but the diverse segments collectively support the market’s growth.

Gasoline engines dominate the used car market, holding a 63.4% share, thanks to their lower upfront cost, availability, and well-established fueling infrastructure. While gasoline cars remain popular for their low maintenance and reliability, diesel vehicles are favored by long-distance drivers due to their fuel efficiency, though stricter emissions regulations are limiting their growth. Hybrid and electric vehicles, while still a small portion of the market, are growing quickly due to rising environmental awareness, government incentives, and better charging infrastructure. The market is shifting toward more sustainable and efficient fuel options, with gasoline still leading, but hybrids and EVs gaining ground.

Franchised dealers lead the used car market with a 45.2% share, thanks to their reputation for reliability, a wide range of vehicle options, and added services like certified pre-owned programs, warranties, and financing options. These features reduce buyer risks and build trust. While peer-to-peer sales are cheaper, they come with higher risks, and independent dealers, though offering competitive prices, can’t match the comprehensive services of franchised dealers. Despite this, peer-to-peer and independent channels remain important for budget-conscious buyers and those seeking less mainstream vehicles.

The end-use segment of the used car market is primarily split between personal and commercial uses, with personal use leading at 61.6%. This is driven by rising consumer demand for mobility, the convenience of vehicle ownership, and a growing range of financing options that make cars more accessible. The demand for personal vehicles is further supported by limited public transportation in some regions and changing work patterns due to remote and flexible jobs. Commercial use, while smaller, remains significant, fueled by the growth of e-commerce and logistics, with commercial vehicles supporting industries like transportation, delivery, and rental services.

Top Use Cases

  • Cost-Effective Alternative to New Cars: Many consumers turn to the used car market as a more affordable alternative to purchasing a new vehicle. Used cars offer significant savings, and buyers are more likely to opt for a pre-owned car when seeking better value for their money.
  • Budget-Friendly Fleet Management: Businesses and car rental services use the used car market for purchasing affordable vehicles for their fleets. These vehicles serve as low-cost alternatives for daily operational use, without compromising on quality.
  • Car Sharing Programs: With the growth of ride-sharing services, many drivers are looking for used cars to add to their fleets. Car sharing platforms are sourcing their vehicles from the used car market to provide lower-cost options for customers.
  • First-Time Buyers: The used car market serves as a gateway for first-time buyers. Young drivers, students, and those with limited budgets find it easier to purchase a used car rather than a new one, giving them affordable access to transportation.
  • Upgrade for Families: Families looking for a second or larger vehicle often prefer purchasing used cars. They typically seek affordable options with more space, like SUVs or minivans, without paying the premium associated with new models.

Major Challenges

  • Lack of Transparency: One of the main issues in the used car market is the inconsistency in vehicle history reporting. Many buyers are concerned about undisclosed accidents, flood damage, or tampered odometers, leading to mistrust.
  • Fluctuating Prices: The pricing of used cars can be highly volatile, influenced by a variety of factors such as demand, availability, and economic conditions. This makes it difficult for buyers and sellers to predict fair prices consistently.
  • Limited Warranty Options: Unlike new cars, used cars often come with limited or no warranties, which can discourage potential buyers. The absence of a warranty or limited service coverage makes consumers hesitant to purchase.
  • Availability of Quality Vehicles: Finding well-maintained, quality used vehicles can be challenging, particularly in markets with limited supply or high demand. Some regions may face a scarcity of specific models, affecting overall market availability.
  • Rising Financing Costs: Interest rates for used car financing have been on the rise in some regions, making it less affordable for consumers. Higher rates can impact loan approvals and discourage people from purchasing used cars.

Key Player Analysis

The Global Used Car Market in 2024 is poised for growth, driven by key players like Cox Automotive and Alibaba.com, who are enhancing online car buying through their extensive digital platforms. Cox Automotive offers integrated services across inventory, marketing, and financing, while Alibaba.com is expanding its cross-border reach. In North America, AutoNation Inc., TrueCar Inc., and Asbury Automotive Group dominate, with AutoNation leading as a dealer network and TrueCar offering transparent pricing. eBay Inc. remains a major online marketplace for buying and selling cars.

Group 1 Automotive and Hendrick Automotive Group utilize their dealership networks alongside digital innovations, and Lithia Motors Inc. continues to expand its online presence. In Europe, Scout24 AG leads with its digital platform for used car listings. Together, these players are reshaping the used car market through technological advances and expanded market access.

Top Key Players in the Market

  • CarMax Business Services LLC
  • Cox Automotive
  • Alibaba.com
  • AutoNation Inc.
  • TrueCar Inc.
  • Asbury Automotive Group
  • eBay Inc.
  • Group 1 Automotive Inc.
  • Hendrick Automotive Group
  • LITHIA Motor Inc.
  • Scout24 AG
  • Other Key Players

Regional Analysis

Asia-Pacific – Dominating Region with Largest Market Share in the Used Car Market (38.3% in 2023)

The Asia-Pacific region holds a dominant position in the global used car market, commanding a significant market share of 38.3% in 2023, with a total market value of USD 0.65 trillion. This remarkable growth can be attributed to the increasing consumer demand for cost-effective transportation solutions, as well as the rapid expansion of the automotive industry across countries like China, India, Japan, and South Korea. In particular, China leads as the largest contributor to the used car market in the region, driven by the country’s growing middle class and rising disposable incomes. Additionally, the availability of well-maintained, affordable used cars in local markets has further fueled the demand for pre-owned vehicles in both urban and rural areas.

The rising popularity of online platforms for buying and selling used cars, coupled with government regulations favoring the growth of the used car market, has also played a pivotal role in the market’s expansion. Furthermore, the automotive market in Japan and South Korea is witnessing a shift towards more sustainable and affordable vehicle options, with used cars becoming an increasingly attractive choice. As the region’s economic development continues and consumer behavior shifts, Asia-Pacific is expected to maintain its leadership in the global used car market for the foreseeable future.

Used Car Market By Regional Analysis

Recent Developments

  • In 2023, Carvana, a leader in online car buying and selling, unveiled a new Car Vending Machine in Hollywood, Florida. This high-tech eight-story structure has the capacity to hold 27 vehicles, providing an innovative car buying experience for the Miami area.
  • In January 2024, Vroom, Inc. (Nasdaq: VRM) announced it would discontinue its online vehicle sales and shut down its used car dealership operations. The company plans to focus on its other business ventures, including United Auto Credit Corporation (UACC) and CarStory, both of which will continue to operate and grow independently.
  • In October 2023, TrueCar, Inc. (NASDAQ: TRUE) revealed a new partnership with Car and Driver. This collaboration, which started in August 2023, integrates TrueCar’s services into Car and Driver’s platform, enhancing the vehicle shopping experience for its 15 million users.

Conclusion

The global used car market is set for significant growth, projected to reach USD 3.1 trillion by 2033, driven by factors like rising new car prices, longer vehicle lifespans, and increased demand for affordable transportation. With SUVs leading the vehicle segment, gasoline-powered cars dominating the fuel type, and franchised dealers maintaining market share, the sector is also embracing digitalization and sustainable options, like hybrid and electric vehicles. Asia-Pacific remains the largest regional market, while innovations from key players like Cox Automotive and Alibaba are reshaping how consumers buy and sell used cars. Despite challenges such as price volatility and limited warranties, the market’s trajectory points to continued expansion and evolution in the coming years.

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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a tech blogger that frequently contributes to numerous industry-specific magazines and forums. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and in raising a general awareness of technical know-how. When he’s not ruminating about various happenings in the tech world, he can be usually found indulging in his next favorite interest - table tennis.

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