Used Car Market Outlook:
Used Car Market in 2025 is assessed at USD 2.73 trillion. The global market size was valued at over USD 2.63 trillion in 2024 and is expected to expand at a CAGR of around 4.7%, surpassing USD 4.78 trillion revenue by 2037. Europe is expected to generate USD 1.47 trillion, driven by increasing consumer demand for affordable personal cars.
Rising car prices are one of the major reasons behind the growth of this sector. According to a CFPB report published in February 2022, the CPI of new cars increased by 12% in 2022. The report further stated that the chip shortage decreased new production compared to the previous year. Thus, consumers are opting for more alternative options, including used vehicles.
The limited inventory due to ongoing challenges has severely disrupted the supply chain of new cars. In addition, the budget-friendly switch for an upgraded version encourages consumers to invest in the used car market. Many companies are now offering attractive trade-in solutions to avail pre-owned models at an affordable price. For instance, in June 2022, BCA launched a regular sales program, Forecourt Ready to offer the highest-conditioned vehicles. The ready-to-retail models can support customers with uplifted auction standards. Such facilities can reduce the pre-sale refurbishing cost for dealers, gaining more retailer interest in this industry.
