The Singapore Used Car Market size is estimated at USD 45.81 billion in 2024, and is expected to reach USD 57.36 billion by 2029, growing at a CAGR of greater than 4.60% during the forecast period (2024-2029).
Over the medium term, factors such as increasing purchasing power and easy availability of finance are expected to contribute positively to the growth of the used car market in Singapore. Rising digitalization, internet penetration, and an increase in online players are likely to act as critical factors in boosting the sale of used cars. They have made the overall process of selling and buying used cars quite convenient and prompt.
However, recent incidents, such as a surge in used car prices across the country due to rising certificate of entitlement (COE) premiums and large car COEs breaching the USD 100,000 mark, indicate signs of a weakening market. Such instances are forcing dealers to uphold prices on cars they had bought when the market price was high. If prolonged, these factors are estimated to act as potential challenges.
The used car market in Singapore is moderately fragmented owing to its competitive nature and the presence of a large number of regional and domestic players operating across the country. While some prominent players are focused on fleet expansion and collaborations, new entrants are focused on widening their customer base by adopting varying strategies.
For instance, in November 2023, SgCarMart, Singapore's leading car platform, announced a partnership with KINTO Singapore to introduce the 'Leasing as an Option' service for used car buyers. Targeting over 800 vehicles on Sgcarmart initially, the program aims to redefine car usage, offering a flexible alternative to ownership.
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