The used car market is projected to reach over 1.5 trillion U.S. dollars in 2027, up from 1.2 trillion in 2020. This represents a compound annual growth rate of around 3.2 percent across seven years. This growth is in part attributed to a shift in car ownership patterns across the globe, as well as the rise of online sales channels, which make used cars more accessible to customers.

Sales of used light vehicles in the United States came to around 38.9 million units in the third quarter of 2024. The same period, approximately 15.6 million new light trucks and automobiles were sold here. Declining availability of vehicles In the fourth quarter of 2023, about 288.5 million vehicles were in operation in the United States, an increase of under one percent year-over-year. The rising demand for vehicles paired with an overall price inflation lead to a rise in new vehicle prices. In contrast, used vehicle prices slightly decreased. E-commerce: a solution for the bumpy road ahead? Financial reports have revealed how the outbreak of the coronavirus pandemic has triggered a shift in vehicle-buying behavior. With many consumer goods and services now bought online due to COVID-19, the automobile industry has also started to digitally integrate its services online to reach consumers with a preference for contactless test driving amid the global crisis. Several dealers and automobile companies had already begun to tap into online car sales before the pandemic, some of them being Carvana and Tesla.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Used Cars and Trucks in U.S. City Average (CUSR0000SETA02) from Jan 1953 to Feb 2025 about used, trucks, vehicles, urban, consumer, CPI, inflation, price index, indexes, price, and USA.

The Report Covers Used Car Dealership Industry Analysis and is Segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Others), Body Type (Hatchback, Sedan, and Sports Utility Vehicles and Multi-Purpose Vehicles), and Sales Channel (Online and Offline). The Report Offers Market Size and Forecasts for United States Used Car Market in Value (USD Billion) for all the Above Segments.

In 2021, Baby Boomers were the main new car buyers in the United States, representing around 36 percent of new car sales. By contrast, Gen X made up the majority of the used car buyers, at close to 40 percent of the sales.

The Report Covers the Australian Used Car Market Value & Forecast and It is Segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Others), Body Type (Hatchback, Sedan, Sports Utility Vehicle and Multi-Purpose Vehicle), and Sales Channel (Online and Offline). The Market Size and Forecasts for the Australian Used Car Market are Provided in Terms of Value (USD) for all the Above Segments.

Used car dealers in the United States had a market size of 138.1 billion U.S. dollars in 2021. While the industry value dipped at the onset of the COVID-19 pandemic, used car sales quickly recovered, with used car dealers' market value hiking above its pre-pandemic levels.

The used car market boom

The used car market has been gaining steam since 2017 when the volume of used light vehicles sold hiked by just under 11 percent year-over-year to 42.7 million sales. By 2021, around 43.1 million used light vehicles were sold in the U.S, representing just under 74 percent of the total light vehicle sales in the country. While sales increased, the average used vehicle selling price also inflated—up 21 percent year-over-year in 2021—with vans, sport-utility vehicles, and crossover utility vehicles recording the steepest price increase. The semiconductor shortage, forcing halts in new vehicle production, is partly responsible for this boom in the used car market. Most used vehicle retail inventory in June 2022 was priced above 35,000 U.S. dollars, making the used car market increasingly inaccessible to consumers.

Light trucks at the forefront of sales

U.S. consumer satisfaction with their overall shopping experience dropped in 2021, with used car buyers reporting a satisfaction rate of 65 percent, compared to 71 percent in 2020. While 2021 satisfaction is higher than in 2019, this denotes the impact of higher prices on customers. Most consumers opted for used light trucks instead of used automobiles. The net purchase of used light trucks spiked in the third quarter of 2019, reaching 194.7 billion U.S. dollars in the second quarter of 2022, while auto sales had a net purchase value of 52 billion U.S. dollars that same quarter. The Ford F-150, Chevrolet Silverado 1500, and Ram Pickup 1500 were the 2016 to 2020 MY models with the largest share of used car sales in the U.S. Ford was also the third best-selling manufacturer for new vehicles in the U.S.

Graph and download economic data for Retail Sales: Used Car Dealers (MRTSSM44112USN) from Jan 1992 to Jan 2025 about used, dealers, vehicles, retail trade, sales, retail, and USA.

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Used Car Market Size 2024-2028

The used car market size is forecast to increase by USD 857.1 billion at a CAGR of 7.56% between 2023 and 2028.

The market is experiencing significant growth and transformation, driven by increasing competition leading to the launch of numerous new car models and the emergence of innovative business models. One of the key trends shaping this market is the rising demand for car subscription services, which offer flexible and affordable access to vehicles without the long-term commitment of ownership. Another trend is the increasing popularity of car-sharing services, which provide short-term vehicle rentals on an hourly or daily basis, addressing the growing need for mobility solutions in urban areas. These trends present both opportunities and challenges for market participants. For companies looking to capitalize on the growing demand for used cars, there is a significant opportunity to offer flexible and affordable solutions through car subscription and car-sharing services. However, increased competition and changing consumer preferences require a deep of market dynamics and the ability to adapt quickly to emerging trends. Moreover, the market is also facing challenges such as the increasing complexity of vehicle technology and the need for reliable and efficient after-sales services. Companies that can effectively address these challenges and provide value-added services to customers are likely to succeed in this market. Overall, the market is an exciting and dynamic space, offering significant opportunities for growth and innovation for companies that can navigate the challenges effectively.

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

Request Free SampleThe market continues to be a dynamic and sizeable industry application in the personal transportation sector, catering to a diverse consumer base. With the increasing popularity of modern cars equipped with advanced safety features like adaptive cruise control and lane-keeping assistance, the demand for used vehicles with such technologies is on the rise. Online platforms and e-commerce platforms have revolutionized the buying process, enabling consumers to access vehicle histories through mobile apps and vehicle history reports. Environmental concerns have also influenced the market, driving demand for used vehicles with fuel efficiency and low emissions. As technology advances, infotainment systems and imaging technologies are becoming increasingly important considerations for used car buyers. Overall, the market is poised for continued growth, offering consumers a cost-effective alternative to new vehicles while providing access to the latest industry applications and technologies.

How is this Used Car Industry segmented?

The used car industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. Vehicle TypeCompact carSUVMid sizeChannelOrganizedUnorganizedFuel TypePetrol/GasolineDieselElectric/HybridEnd UserIndividual BuyersBusiness/Fleet OperatorsGeographyAPACChinaIndiaJapanNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaEgyptKSAOmanUAESouth AmericaArgentinaBrazil

By Vehicle Type Insights

The compact car segment is estimated to witness significant growth during the forecast period.The compact car segment in the global used vehicle market is experiencing significant growth due to increasing consumer preference for personal mobility and the need for fuel efficiency. Europe and Asia-Pacific are the leading markets for used compact cars, driven by the availability of diverse consumer bases, aging vehicle fleets, and regulatory changes. Compact cars, such as the Fiat Panda and Volkswagen Golf, are popular choices due to their adaptive cruise control, lane-keeping assistance, and infotainment systems. Eco-friendly vehicles, including hybrid and electric cars, are gaining traction due to environmental concerns and increasing fuel prices. Online platforms and e-commerce marketplaces, such as Ebay Inc., offer competitive financing options, flexible loan terms, and digital verification for a seamless buying process. Modern vehicles with advanced imaging technologies and virtual vehicle inspections ensure transparency and symmetry of information for buyers. The future outlook for the market is positive, with a focus on eco-friendly cars, affordable models, and digital retailing. Sales channels, including franchise dealers, independent dealers, and car auctions, offer various fuel types, vehicle types, and warranty options to cater to budget-conscious buyers. Online sales, lease returns, and trade-in programs are also contributing to the growth of the market.

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The global used car market size reached USD 1,056 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2,108 Billion by 2033, exhibiting a growth rate (CAGR) of 7.99% during 2025-2033. The market is experiencing steady growth driven by the growing preferences for eco-friendly and fuel-efficient vehicles, wide accessibility of financing options, and introduction of features like adaptive cruise control, lane-keeping assistance, and advanced infotainment systems.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on vehicle type, vendor type, fuel type, and sales channel.

Indonesia used car market size reached 1.4 Million Units in 2023. Looking forward, IMARC Group expects the market to reach 1.94 Million Units by 2032, exhibiting a growth rate (CAGR) of 3.40% during 2024-2032. The emerging middle-class population, rapid urbanization, significant infrastructure development, easy availability and diversity of used cars, rising environmental concerns, supporting financing options, and growing proliferation of online marketplaces represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on vehicle type, booking channel, and financing providers.

Graph and download economic data for Consumer Price Index for All Urban Consumers: New and Used Motor Vehicles in U.S. City Average (CUSR0000SETA) from Jan 1993 to Feb 2025 about used, vehicles, urban, new, consumer, CPI, inflation, price index, indexes, price, and USA.

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The used car market industry report identifies increasing launch of new model cars as one of the primary drivers propelling the growth of the market. This driver is expected to create several growth opportunities and entice market vendors to make significant investments.

The used car market report also provides several other key information including:

CAGR of the market during the forecast period 2020-2024
Detailed information on factors that will drive used car market growth during the next five years
Precise estimation of the used car market size and its contribution to the parent market
Accurate predictions on upcoming trends and changes in consumer behavior
The growth of the used car market industry across North America, Europe, APAC, MEA, and South America
A thorough analysis of the market’s competitive landscape and detailed information on vendors
Comprehensive details of factors that will challenge the growth of used car market vendors

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The used car market in us is expected to grow at a CAGR of 2% during the forecast period. Proliferation of websites selling used cars, drivers.2, and drivers.3 are some of the significant factors fueling used car market in us growth.

Proliferation of websites selling used cars

By Age of Vehicle, 2021:Upper Middle/Middle-Income Families, Working Professionals, and other groups prefer used cars that are 8-10 years old, 2021. 2012 models came to the fore the most with a rate of 7.3%, followed by the 2017 and 2015 ones. Vehicles from the year 2000 and before constitute 14% of the entire market. Local dealerships are starting to offer more competitive services like repairs on used cars, leading to an increase in the number of units sold. Such Unorganised Local dealerships are clustered in large numbers on the outskirts of every major city and in urban areas. The participants in the C2C give strong preference to less-aged cars and popular brands with good resale value attracts more consumers. By Type of Market Structure (Organized and Unorganized Sector):The car sharing platforms are increasingly gaining prominence in Turkey as brands such as Yoyo and Zipcar continue to gain popularity among the millennial population. Key Trends by Market Segment: The Turkish automotive industry had a foreign trade surplus of approximately $9.5 billion in 2021.

Africa Used Car Market is segmented by Vehicle Type (Hatchbacks, Sedans, and Sport Utility Vehicles & Multi-Purpose Vehicles), By Vendor (Organized and Unorganized), and By Country (South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and Rest of Africa). The report covers the market size and forecast in USD for all the above segments.

The Thai Used Car Market Report is Segmented by Vehicle Type (Hatchbacks, Sedans, Sports Utility Vehicles (SUV), and Multi-Purpose Vehicles (MPV)), Vendor Type (Organized and Unorganized), Booking Type (Online and Offline), and Fuel Type (Petrol, Diesel, and Other Fuel Types). The Report Offers Market Size and Forecast for the Thai Used Car Market in Value (USD Billion) for all the Above Segments.

Used car sales in Brazil experienced a mostly upward trend throughout the past decade, peaking at nearly 9.6 million units in 2021. 2023 sales increased compared to the drop recorded in 2022, up to some 9.1 million used cars sold in the country.

The Report Covers Used Cars Market Statistics in UAE and It is Segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Fuel Type (Gasoline, Diesel, and Others), Booking Type (Online and Offline), and Vendor Type (Organized and Unorganized). The Market Size and Forecast for UAE Used Car Market is Provided in Value (USD Billion) for all the Above Segments.

The GCC Used Car Market Report is Segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Sales Channel (Online and Offline), Vendor type (Organized and Unorganized) and Country (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait). The market size and forecast for GCC Used Car market are provided in terms of value (USD) for all the above segments.