Online platforms have emerged to drive the market growth for used cars significantly. These platforms make it easy for users to find information about used cars and to make offers on specific cars. The key players in this area have expanded recently to increase their sales. Online platforms provide convenience and simplicity for buyers looking at used cars.
Global Used Cars Market Continues Upward Trend
The compound annual growth rate for 2022 is 5.57%, but this is expected to increase to 5.73% by 2026. Compared to $1,154.95 billion in 2021, the used cars market in 2022 grew to $1,219.23 billion. By 2026, the used cars market is expected to expand to $1,523.77 billion.
The used cars market refers to vehicles sold by multiple entities, including large organizations and sole proprietors. These vehicles may be anywhere from only a year old to many years old. The main defining factor is that they have been previously owned by at least one other owner. Used cars have a broader appeal versus new cars in that prices may vary considerably and those with budget restrictions can find something to fit their needs.
Used cars include sedans, SUVs, hatchbacks, and trucks. The largest region for the used cars market in the last few years is the Asia Pacific region.
New Online Platforms Driving Sales
There are many new online platforms driving the sales of used cars. For example, Ola Cars was launched in September 2021. This platform allows customers to buy and trade used cars through try-and-buy services and easy financing. New online platforms like Ola Cars allow buyers to consider a variety of options no matter where they are located. The continued increase of online platforms for used cars is expected to drive sales for the next several years.
Another factor is major companies investing in the used cars market through expanding and strengthening their businesses. This is happening all over the globe. For example, Volkswagen expanded its used car network in India in late 2020 by opening two new locations.
Used Cars Market Countries and Companies
The countries contributing to the used cars market report include the USA, the UK, South Korea, Russia, Japan, Indonesia, India, Germany, France, China, Brazil, and Australia. Some of the top companies in the used cars market include TrueCar, Cox Automotive, CarMax, AutoNation, Vroom, Honda Auto Terrace, and Toyota U-Trust, among many others.
The impact of Covid-19 continues to have an effect on the used cars market as well. The last few years have seen strong increases in average prices for used cars. This is due to several factors, including supply chain problems for new cars, difficult financing situations for new cars, and increased budget constraints for consumers. The prices for used cars evened out somewhat at the end of 2022, but pre-pandemic prices are likely years away.
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