As of 2023, ** percent of UK respondents preferred to use online tools to neogtiate prices while purchasing their new vehicle. This was the leading online activity among car buyers, followed by completing the transaction, which ** percent of participants reported preferring to do online.

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The online car buying market share is expected to increase by USD 214.41 million from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 12.4%.

This online car buying market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the online car buying market segmentations by Class Type (pre-owned and new vehicle) and Geography (North America, Europe, APAC, South America, and Middle East and Africa). The online car buying market report also offers information on several market vendors, including American City Business Journals Inc., Asbury Automotive Group Inc., AutoNation Inc., CarGurus Inc., CarMax Inc., Cars & Bids LLC, Cars.com Inc., Cars24 Services Pvt. Ltd., CarSoup of Minnesota Inc., Carvago, Carvana Co., Cox Enterprises Inc., eBay Inc., Edmunds.com Inc., Hendrick Automotive Group, Lithia Motors Inc., MH Sub I LLC, Miami Lakes Automall, and TrueCar Inc., among others.

What will the Online Car Buying Market Size be During the Forecast Period?

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Online Car Buying Market: Key Drivers, Trends, and Challenges

The research studied the historical data considered for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the global online car buying market.

Key Online Car Buying Market Driver

The increasing adoption of e-commerce and technological advancements in online channels are key factors driving the global online car buying market growth. Technological advancements such as the development of smartphones and rising Internet penetration are spurring the use of e-commerce applications to boost the sales of businesses, while the introduction of hybrid and electric vehicles has changed the buyers' position in the global online car buying market. With the aid of online technology, consumers are learning more about the vehicle, the on-road prices of new automobiles, residual value, third-party profit margins, and other factors for used cars. Additionally, growing urbanization, an increase in Internet connectivity, and the growth of the telecom industry have made it possible for the general public to access information much more easily. Online car dealers are increasingly using these factors to advertise their vehicles and disseminate information about them. The sale process has been streamlined on web platforms, which also makes it possible for more stakeholders to sell and acquire used cars. Thus, the growing e-commerce industry and the increasing adoption of technological advancements by vendors will propel the growth of the global online car buying market during the forecast period.

Key Online Car Buying Market Trend

Easy online financing will fuel the global online car buying market growth. Financing options are widely available on many car-buying websites, which encourages customers to get preapproval for loans before they even start looking for cars on their websites. According to a survey, 71% of customers choose to finance through the site where they purchased their car. These customers are highly satisfied with the financing options available on car-buying websites. Hassle-free loan applications and favorable interest rates attract more customers to opt for online financing options. For instance, AutoNation Inc. provides hassle-free auto financing options for every customer according to his or her needs and requirements. The company offers a wide range of finance programs that makes auto financing simple and clear. To provide a variety of financing and leasing alternatives, AutoNation has partnered with hundreds of banks in the US. Owing to such easy financing options, customers are attracted to online car-buying options. Thus, the availability of hassle-free and paperless online auto finance provided by car-buying websites will fuel the growth of the global online car buying market during the forecast period.

Key Online Car Buying Market Challenge

Limited customer awareness and acceptance in semi-urban and rural areas are the major challenges to the global online car buying market growth. Buying a car online is still an urban concept despite its prevalence and its numerous advantages. The acceptance of buying a car through online channels is low in semi-urban and rural areas. Buying cars online has not penetrated a large portion of the population, particularly in developing countries such as India. In emerging economies, including India, China, and Indonesia, a car is considered a status symbol. Thus, customers in such countries generally prefer to buy a car through physical stores where they can physically inspect the features of the car. For the middle-class population, buying a car is a major in

By 2026, the share of car purchases made online and fulfilled via delivery is expected to reach up to ** percent. In comparison, in 2022, only *** percent of car purchases made in the United States were completed online and fulfilled via delivery services.

Graph and download economic data for Retail Sales: Used Car Dealers (MRTSMPCSM44112USN) from Feb 1992 to Jul 2025 about used, dealers, retail trade, vehicles, sales, retail, and USA.

In the B2B automotive market, e-commerce represents an additional touchpoint in the purchase and sale of used cars, which often occurs offline. In France, online marketplaces were the favorite online channel for transactions in 2024. ** percent of car dealerships taking part to a survey used online marketplaces to sell used cars, whereas another ** percent of them bought from online marketplaces for resale. In turn, only ** percent of dealerships stated their used cars came from online action platforms.

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US Used Car Market Size 2025-2029

The US used car market size is forecast to increase by USD 40.2 billion, at a CAGR of 4.3% between 2024 and 2029.

The used car market in the US is witnessing significant growth, driven by the excellent value proposition that used cars offer to consumers. The increasing popularity of websites dedicated to selling used cars has expanded market reach and convenience, allowing consumers to browse and purchase vehicles online. Stringent emission regulations are restricting the sales of non-compliant used cars, necessitating investments in upgrading and maintaining commercial vehicle fleets to meet regulatory requirements. These regulations necessitate investments in emission testing and certification processes, increasing operational costs for dealers. To capitalize on opportunities, dealers can focus on offering certified pre-owned vehicles and implementing robust emission testing procedures.
Additionally, leveraging digital marketing strategies and offering flexible financing options can help attract and retain customers. Overall, the used car market presents both challenges and opportunities for players, requiring strategic planning and innovation to succeed.

What will be the size of the US Used Car Market during the forecast period?

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The used car market in the US continues to evolve, with various sectors adapting to emerging trends and technologies. Vehicle data analysis plays a pivotal role in understanding vehicle depreciation curves and return on investment for dealers. Payment processing systems streamline sales transactions, while sales performance metrics and customer lifetime value inform strategic decision-making. Fraud detection systems ensure compliance with legal standards, and insurance cost factors influence acquisition channel efficiency. Inventory turnover rate, a key performance indicator, varies across dealerships. Compliance audits and dealer training programs maintain legal compliance and improve customer satisfaction. Market penetration rate and resale value prediction help dealers optimize pricing models.
Consumer protection laws and financing product offerings shape customer trust and loyalty. Operating costs analysis, customer service feedback, and sales conversion rates contribute to profit margin calculation. Risk assessment models, employee performance metrics, marketing spend efficiency, and pricing model validation are essential for long-term success. A recent study reveals a 5% increase in sales for dealerships implementing advanced data analytics. Industry growth is expected to reach 3% annually, driven by these evolving market dynamics.

How is this market segmented?

The US used car market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  3P channel sales
  OEM channel sales


Product

  Mid size
  Full size
  Compact size


Vendor Type

  Organized
  Unorganized


Fuel Type

  Diesel
  Petrol


Geography

  North America

    US

By Distribution Channel Insights

The 3P channel sales segment is estimated to witness significant growth during the forecast period.

The used car market in the US is an active and dynamic sector, driven by various factors. With the constant launch of new vehicle models, the supply of used cars increases, resulting in lower prices compared to new cars. This trend encourages car owners to sell their vehicles and upgrade to newer models, shortening the average ownership cycle. Online advertising platforms play a significant role in connecting buyers and sellers. Pre-purchase inspections and vehicle history reports ensure transparency and build trust. Repairs cost estimation and parts sourcing networks help in managing the expenses of used car ownership. Market segmentation strategies cater to different customer needs, while customer relationship management tools foster loyalty.

Emissions testing standards ensure the environmental sustainability of used vehicles. Auto appraisal value tools help in determining fair prices, and loan term comparison aids in financing decisions. Marketing campaign effectiveness is measured through customer acquisition cost and interest rate calculation. Mobile apps offer functionalities like mechanical inspection checklists, paint depth measurement, and damage assessment tools. Dealer inventory management, detailing services, and vehicle photography techniques enhance the sales process. Industry growth is expected to continue, with the used car market projected to expand by 3% annually. For instance, a dealership successfully increased its sales by 15% thr

A 2021 survey of consumers who have recently purchased or leased a vehicle found that new car buyers spend an average of * hours and ** minutes on online automotive research and purchasing, down from the previous years. Moreover, this is significantly less than for used car buyers, who spend an average of * hours and ** minutes researching and purchasing their cars.

The global online car buying market size was valued at USD 256 billion in 2021, North America will command the market.
Report Scope:

Discover the booming automotive e-retail market! This comprehensive analysis reveals a $28 billion market in 2025, growing at a 15.3% CAGR through 2033. Learn about key drivers, trends, challenges, and top players like Alibaba, eBay, and Autonation shaping the future of online car buying.

United States - Retail Sales: Used Car Dealers was 12029.00000 Mil. of $ in July of 2025, according to the United States Federal Reserve. Historically, United States - Retail Sales: Used Car Dealers reached a record high of 15309.00000 in March of 2023 and a record low of 1041.00000 in December of 1992. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Retail Sales: Used Car Dealers - last updated from the United States Federal Reserve on December of 2025.

The Car Sales Dataset is a collection of data that contains information on various car models sold in the market. The dataset includes variables such as the price of the car in thousands of dollars, engine size, horsepower, fuel efficiency, and sales. 1. Price_in_thousands: This variable represents the price of the car in thousands of dollars, which is a measure of the car's cost. 2. Engine_size: This variable represents the size of the engine in cubic centimeters, which is a measure of the car's power. 3. Horsepower: This variable represents the power of the car's engine in horsepower, which is a measure of the car's ability to accelerate and maintain speed. 4. Fuel_efficiency: This variable represents the number of miles per gallon (mpg) that the car can travel on a single gallon of fuel, which is a measure of the car's fuel efficiency. 5. Sales: This variable represents the number of units of the car sold in a given period, which is a measure of the car's popularity and demand in the market.

Overall, this dataset can be used to analyze the relationships between the different variables and to predict the sales of a car based on its price, engine size, horsepower, and fuel efficiency. It can be helpful for businesses and consumers alike in making informed decisions about buying and selling cars.

Car dealerships are turning to online car sales in response to the public health crisis.

The global Car e-commerce market is poised for significant expansion, projected to reach approximately $150 billion by 2025, with a robust Compound Annual Growth Rate (CAGR) of 15% anticipated throughout the forecast period. This upward trajectory is fueled by an increasing consumer preference for convenient, transparent, and digitally driven purchasing experiences. The market is segmented into personal and commercial applications, with both new and used car transactions contributing to its growth. The surge in online platforms offering extensive inventory, competitive pricing, virtual tours, and streamlined financing options is fundamentally reshaping how vehicles are bought and sold. Key drivers include the widespread adoption of smartphones, enhanced internet penetration, and the evolving digital capabilities of automotive manufacturers and dealerships. Moreover, the increasing comfort levels of consumers with making large purchases online, coupled with the convenience of home delivery, are further accelerating this shift. Despite the immense growth potential, certain restraints could temper the market's pace. These include lingering consumer concerns regarding the inability to physically inspect vehicles before purchase, the complexity of vehicle financing and insurance processes online, and potential logistical challenges in vehicle delivery and returns, particularly for cross-border transactions. However, the industry is actively addressing these challenges through innovations like augmented reality (AR) for virtual inspections, blockchain for transparent vehicle history, and improved last-mile delivery solutions. Emerging trends such as the rise of subscription-based car ownership models and the integration of artificial intelligence (AI) for personalized recommendations are expected to further enhance the appeal and accessibility of car e-commerce. Companies like CarMax, Guazi, and Carvana are leading this transformation, leveraging technology to create a more efficient and customer-centric car buying journey across major regions like North America, Europe, and Asia Pacific. This report provides an in-depth analysis of the global Car e-commerce market, offering a detailed exploration of its evolution, key drivers, and future trajectory. Spanning the historical period of 2019-2024 and projecting growth through to 2033, with a base and estimated year of 2025, this study leverages extensive data to deliver actionable insights for stakeholders. The analysis delves into market concentration, emerging trends, regional dominance, product specificities, and the competitive landscape, all while quantifying market movements in millions of units.

United States Retail Sales: AD: Used Car Dealers data was reported at 8.974 USD bn in Oct 2018. This records an increase from the previous number of 8.887 USD bn for Sep 2018. United States Retail Sales: AD: Used Car Dealers data is updated monthly, averaging 5.545 USD bn from Jan 1992 (Median) to Oct 2018, with 322 observations. The data reached an all-time high of 11.171 USD bn in Mar 2018 and a record low of 1.583 USD bn in Dec 1992. United States Retail Sales: AD: Used Car Dealers data remains active status in CEIC and is reported by US Census Bureau. The data is categorized under Global Database’s United States – Table US.H001: Retail Sales: NAICS.

Graph and download economic data for Expenditures: Vehicle Purchases: Cars and Trucks, Used by Income Before Taxes: $150,000 to $199,999 (CXUUSEDCARSLB0222M) from 2015 to 2023 about used, purchase, trucks, tax, vehicles, expenditures, income, and USA.

Graph and download economic data for Employment for Retail Trade: Used Car Dealers (NAICS 441120) in the United States (IPUHN441120W201000000) from 1988 to 2024 about used, dealers, NAICS, retail trade, vehicles, sales, retail, employment, and USA.

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Automotive E-Commerce Market Size 2025-2029

The automotive e-commerce market size is forecast to increase by USD 165.65 billion, at a CAGR of 21.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing penetration of smartphones and the internet. With more consumers turning to digital platforms for purchasing goods, the automotive industry is following suit. E-commerce platforms facilitate seamless digital payment and order management systems. The convenience of researching and buying automotive parts online, coupled with the availability of multiple payment modes, is making e-commerce an attractive option for both consumers and sellers. However, challenges persist, including the widespread availability of counterfeit automotive parts. This issue poses a significant risk to both consumers and manufacturers, as the use of substandard parts can lead to safety concerns and damage to vehicles.
Companies looking to capitalize on market opportunities must prioritize authenticity and transparency in their offerings, while also investing in robust security measures to protect against counterfeit products. Effective supply chain management and partnerships with trusted suppliers are essential to maintaining a strong market position. In navigating this dynamic landscape, strategic planning and operational agility will be key to success. Customer data protection and supply chain optimization are crucial components, ensuring secure transactions and efficient logistics.

What will be the Size of the Automotive E-Commerce Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with dynamic market activities unfolding across various sectors. Parts ordering systems are seamlessly integrated into digital platforms, enabling customers to easily purchase necessary components for their vehicles. Customer reviews play a crucial role in influencing purchasing decisions, shaping the market landscape. Influencer marketing and retargeting campaigns are increasingly utilized to reach potential customers, while digital showrooms provide a virtual shopping experience for consumers. Lead generation and sales process automation streamline the buying journey, enhancing the customer experience. Promotional campaigns and special offers are employed to attract and retain customers, with data analytics and marketing automation tools used to optimize pricing strategies and personalize user experiences.

Social media marketing and email marketing are essential channels for reaching diverse customer segments, from luxury car buyers to those in the market for pick-up trucks. Vehicle financing options and leasing deals are offered online, with payment gateways ensuring secure transactions. Customer support is available through various channels, including website chat and phone, to address any concerns or questions. Return processing is streamlined through digital platforms, ensuring a seamless experience for customers. UX and website usability are prioritized to create an intuitive and user-friendly shopping environment. Mobile app development caters to the growing trend of mobile commerce, enabling customers to shop on-the-go. Used car sales and financing options, including extended warranties and lease agreements, expand the market's reach.

How is this Automotive E-Commerce Industry segmented?

The automotive e-commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Vehicle Type

  Passenger car
  Two-wheeler
  Commercial vehicle


Channel

  Aftermarket
  OEM


Product Type

  Parts and accessories
  Tires and wheels
  Infotainment and electronics
  Interior and exterior accessories
  Tools and garage equipment


Geography

  North America

    US
    Canada
    Mexico


  Europe

    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Vehicle Type Insights

The passenger car segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to the increasing adoption of digital channels for buying and selling certified pre-owned vehicles, insurance integration, and other related services. E-commerce platforms have become a preferred choice for consumers seeking convenience and a wide selection of options, including luxury cars, pick-up trucks, and hybrid vehicles. These platforms offer features like 3D vehicle configurators, online dealerships, email marketing, and social media marketing to engage customers and facilitate seam

The car e-commerce market is projected to be valued at $60 billion in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of 8.2%, reaching approximately $130 billion by 2034.

As of 2020, online sales accounted for some *** percent of used car retail sales in Europe. At about *** percent, the share of such sales was much higher in the United States. While Carvana, a U.S.-based online used-car retailer, sold ******* used cars in the U.S. in 2020, no company has built a similar trusted brand in the European used-car online market. Auto1 Group is one of the leading startups in the field. The company went public in 2021 and was named among the leading unicorns in Europe in April 2021.

View monthly updates and historical trends for Canada Used Car Dealers Retail Sales (DISCONTINUED). Source: Statistics Canada. Track economic data with YC…