North America Used Car Market Outlook, 2029

North America Used Car Market Outlook, 2029

With an amazing range of cars across brands, models, body styles, and fuel types, North America has the largest and most varied used automobile market in the world. The market meets a variety of demands and tastes throughout the continent, offering vehicles ranging from compact cars for urban areas to trucks and SUVs for rural areas. The purchasing and selling procedure is dominated by online marketplaces like Facebook Marketplace, CarMax, and CarGurus, which provide transparency, ease of use, and a larger market reach than conventional techniques. Due to characteristics including perceived status, practicality, and suitability for outdoor activities and long-distance travel, SUVs and trucks are highly preferred by North Americans. This desire has a big impact on the used automobile market since there is a greater demand for these bigger cars, which affects availability and pricing. In order to create immersive experiences, creative platforms are experimenting with VR and AR technology. This enables purchasers to virtually inspect cars or conduct remote test drives. To further improve the purchasing and selling process, sophisticated data analysis and artificial intelligence (AI) tools are utilized to predict market trends, offer appropriate cars, and personalize experiences. The high cost of new cars, worries about affordability, and a rise in the demand for off-lease cars and subscription services from car dealerships, franchises, and leasing offices are some of the factors that are predicted to fuel the growth of the used car market in North America. Both rich and developing nations have seen dramatic increases in the ratio of used to new vehicles in recent years. Additionally, the used automobile industry is growing significantly thanks to franchised dealers that have access to high-quality contracts, online inventory pooling, OEM participation in certification and marketing programs, and internet dealerships. Due to vendor subject-matter expertise and strong customer demand, online sales channels account for the largest service segment in the relevant industry.

According to the research report ""North America Used Car Market Outlook, 2029,"" published by Bonafide Research, the North America Used Car Market was valued more than USD 590 Billion in 2023. A number of factors, including the high price of new cars, worries about affordability, and a rise in the demand from franchise, leasing offices, and car dealers for off-lease cars and subscription services, are anticipated to fuel the growth of the used car market in North America. In both industrialized and developing nations, the ratio of used to new vehicles has increased significantly in recent years. Additionally, franchised dealers who participate in OEM certification and marketing programs, online inventory pooling, and high-quality contract access are assisting in the notable expansion of the used automobile industry. Disruptions in the supply chain, rising material costs, and technology breakthroughs are driving up the cost of new cars. Because of this, used cars are a far more cost-effective choice for those on a tight budget. In the long term, used cars are a superior financial investment because they depreciate far more quickly than new ones. Compared to a new car that depreciates right away, you get more cars for your money. There is a wide range of cars available in the North American used automobile market, including different models, brands, body types, and price ranges. Customers are guaranteed to discover the ideal car for their purposes and lifestyle thanks to this diversity, which meets a broad range of wants and preferences.

Major Drivers

High New Car Expense and Concerns About Affordability: The auto industry has seen an increase in demand for cutting-edge technologies like climate control, power steering, and anti-lock brakes. As a result, new cars are now more expensive. Furthermore, the price increase in 2019 driven primarily by mainstream passenger car segments indicates the challenges with affordability in the new market. In the automotive industry, used car sales have increased in comparison to new car sales as a result. The market for vintage cars is expected to rise as a result.



Rising Interest in Flexible Hatchback Automobiles: Top automakers like Audi AG, BMW AG, Mercedes-Benz, and Volkswagen are heavily present in the used vehicle market and contribute to its growth because they offer a wide range of hatchback car models. Market participants provide hatchback cars with a short roofline and a sporty appearance.

Major Challenges

Problems Related to the Used Car Market's Growth: The lack of strict laws and regulations controlling the purchase of used cars will hinder the used car market's expansion. The market will have more difficulty expanding if used automobile depreciation rates are high. Because fewer people are using public transit, the coronavirus pandemic has had a detrimental effect on the demand for second hand cars globally. Changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, and technological innovations in the market are all covered in detail in this report on the used car market. For an Analyst Brief and other information about the used car market, get in touch with Data Bridge Market Research. Our staff can assist you in making well-informed decisions that will lead to market expansion.

Regulatory Difficulties Particularly in cross-state sales, differing state laws and titling procedures can be confusing to buyers and sellers and provide administrative challenges. Stricter laws and inspection procedures may be required in response to buyer deterrents such as worries about antiquated safety features or unresolved emissions problems in older used cars. Due to the decentralized structure of the used automobile market, rules and strong consumer protection measures are essential because dishonest operators may be drawn to it. Older cars make up a sizable portion of the used car market, thus questions regarding out-of-date safety features and unresolved emissions issues frequently come up. Potential risks of accidents or environmental effects may cause buyers to pause, and requirements pertaining to safety repairs or emissions compliance cause sellers to struggle.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric.

Fuel-efficient conventional cars are now more appealing to consumers on a tight budget due to the recent spike in fuel prices. Despite providing long-term fuel savings, hybrids and electric vehicles (EVs) are frequently more expensive up front; this keeps them out of reach for certain consumers. Adoption of EVs is still hampered by worries about range restrictions and the accessibility of charging infrastructure, particularly in rural locations. Conventional cars remove the fear of running out of charge while driving and provide the comfort of petrol stations.

Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others.

Many purchasers find that SUVs and MUVs offer a compelling blend of off-road performance, cargo capacity, and passenger space. Families, outdoor enthusiasts, and anybody else in need of a car that can perform a variety of jobs will find them ideal. Imagine being able to transport friends to the airport in comfort, pack up bikes for a weekend camping trip, and navigate a snowy driveway with ease all from the convenience of one car. Modern safety systems like lane departure warning, blind-spot monitoring, and automated emergency braking are frequently installed in these cars, giving both drivers and passengers peace of mind. Additionally, especially for families with small children, its greater riding height might provide a sense of security when driving.

Based on Fuel Type market is divided into Petrol, Diesel, Others

Petrol automobiles are more affordable to buy than EVs and hybrids, which make a larger variety of consumers able to afford them. This is particularly true for old cars, when price reductions due to depreciation have already resulted in a large price reduction. Compared to electric and hybrid vehicles, which may need more expensive replacement parts and specialist repairs, gasoline-powered vehicles usually require less maintenance. This can be a crucial consideration for purchasers who value long-term affordability but are also on a tight budget. Compared to the markets for EVs and hybrids, the used car market for gasoline-powered vehicles is far bigger and more varied. This increases the number of options available to purchasers so they can choose an automobile that meets their requirements and budget in terms of manufacturer, model, features, and general condition.

Based on Size market is divided into Mid-Size, Compact, SUVs.

Because they use less fuel than their larger counterparts, smaller SUVs are more appealing to consumers on a budget and who are concerned about the environment. Compact SUVs are more affordable for a larger variety of used automobile consumers since they often have lower initial and continuing maintenance costs. For city inhabitants, its reduced size translates into greater agility and ease of parking in urban settings.

Based on Vendor Type market is divided into Organized, Unorganized.

Compared to established dealerships, unorganized sellers such as private proprietors, internet platforms, and tiny independent dealers typically have lower overhead costs. This means that purchasers may be able to negotiate lower asking prices, which may appeal especially to consumers on a tight budget. Unorganized vendors can now reach a far wider audience thanks to online marketplaces and classifieds websites, which provide buyers with access to a huge inventory of used automobiles to peruse and contrast. More options and easier access may result in more affordable prices and a more pleasant car-buying experience.

Based on By Distribution Channel market is divided into Offline, Online.

It's still important for a lot of automobile purchasers, especially those buying a used car for the first time, to physically view, feel, and test-drive a vehicle. Because online platforms find it difficult to duplicate this, some customers end up preferring the offline experience. Offline dealerships can swiftly get customers pre-approved since they frequently have established contacts with lenders. Some people find the experience easier because they also take care of the paperwork and registration process.

Based on report market includes three major countries including United States, Canada, and Mexico.

The US used-car market is more than twice as big as the new-car market and is expanding at a quicker rate. According to McKinsey's auto retail micro-market model (ARM3) for used-car demand in the nation, millions of Americans buy used cars each year. It is anticipated that used car sales would increase faster than new automobile sales during the next five years. Used automobiles offer a somewhat countercyclical safe haven from the extreme highs and lows in sales when compared to new cars. Used car sales have often recovered more slowly aftermarket shocks like the Great Recession of 2009. New, tech-savvy competitors like Carvana, Fair, and Vroom, among others, are upending the industry. The rich and dynamic history of the used car market in Canada is a reflection of the social and economic advancement of the country. Take a trip down memory lane with us as we examine the incredible rise of used vehicles in the Great White North, from their humble origins to a multibillion dollar industry. The primary drivers of the growth of the used automobile industry in Canada include the expansion of online auto marketplaces, increased costs associated with new cars, and customers' growing inclination towards private mobility as a result of rising GDP per capita and personal disposable income. When their financial stability improves, consumers favour private transportation options for more convenience and personal mobility. One of the factors driving the expansion of the used car market in Mexico is the country's expanding economy. Furthermore, the demand for personal mobility increased along with the population of cities. Because of Mexico's high rate of depreciation on new cars, used cars tend to be a more enticing option for many consumers. Furthermore, because there are fewer options for public transit, used cars are even more important for people who must commute to work or school. For Mexico's sizable population looking for affordable transportation options, the market for used cars is the perfect solution. More financing options facilitate and expedite the used automobile buying process for consumers.

Key players in the market are focusing on strengthening their online presence by engaging in partnerships with online marketplaces or developing their own e-commerce platforms. This allows them to reach a broader consumer base and offer more transparent and convenient buying experiences. In line with this, manufacturers are organizing certified pre-owned (CPO) programs, which involve inspecting, refurbishing, and certifying used cars to meet specific quality standards. Moreover, these programs enhance trust among buyers in used cars. Apart from this, companies are incorporating advanced technologies, such as artificial intelligence (AI) and data analytics to improve inventory management, pricing strategies, and engagement of individuals.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Used Car market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type
• Conventional
• Hybrid
• Electric

By Body type
• Hatchbacks
• Sedan
• SUV & MUV
• Others

By Fuel Type
• Petrol
• Diesel
• Others



By Size
• Mid-Size
• Compact
• SUVs

By Vendor Type
• Organized
• Unorganized

By Distribution Channel
• Offline
• Online

By Offline Distribution Channel
• Independent Dealer
• Franchise Dealer
• Private Sellers
• Others (Used Car Auctions, Certified Pre-Owned (CPO) Programs, Consignment Dealerships, etc)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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