Used Cars Market Growth, Challenges and Emerging Opportunities

Used Cars Market Size, Trends, Opportunities and Projections

The used cars market is forecast to grow at a CAGR of 4.53%, from USD 2.93 trillion in 2025 to USD 4.36 trillion by 2034, over the forecast period from 2025 to 2034.

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Introduction

The used cars market is a prominent branch of the automotive industry. This industry deals in purchasing and selling of used cars in different parts of the world. The used car dealers are engaged in selling various types of vehicles consisting of hatchback, sedan, SUV and some others. These vehicles are powered using several types of propulsion comprising of gasoline, diesel, hybrid, electric and some others. There are numerous types of dealers engaged in this sector including peer-to-peer dealers, franchised dealers, independent dealers and others. The rising sales of used cars in different parts of the world has boosted the market growth. This market is anticipated to rise significantly with the growth of the luxury vehicle industry around the globe.

• According to the SMMT, around 7242692 used cars were sold in UK during 2023 that increased to 7643180 in 2024.

Highlights of the Used Cars Market

• North America held the largest share of the used cars market due to the rise in number of second-hand car dealers in this region.
• Asia Pacific is expected to grow with a significant CAGR due to growing demand for affordable vehicles in this region.
• The SUV segment led the industry due to the rising trend of adventure driving and off-roading activities in different parts of the world.
• The personal segment held the largest portion of the industry due to the availability of passenger vehicles in used car dealerships.

Key Metrics and Overview

Used Cars: Stats & Figures

• According to the India Brand Equity Foundation, the Indian used car sales in expected to reach 10.8 million units by 2030.
• According to the Federal Reserve Bank of ST.Louis, around 12369 used cars were sold in U.S. during January 2025.
• According to the SMMT, around 469,249 used cars were sold in the UK region during December 2024.
• According to the China Association of Automobile Manufacturers, the China used car market is expected to generate a revenue of 81 billion euros in 2028.

Industry Leader Announcement

In June 2024, Mr. Takashi Takamiya, the Vice President at Toyota Kirloskar Motor made an announcement stating that, “Used car business is a key pillar of Toyota’s overall business and growth strategy here in India which is also closely aligning with our vision of ‘Mobility for All’. Therefore, the expansion of TUCO with the inauguration of our first used car outlet in New Delhi exemplifies our dedication to quality, reliability, and customer satisfaction.

Above all, this new outlet upholds the standards synonymous with Toyota products and our benchmark service experience. With the Indian used car market projected to grow at a CAGR of 8% and currently being 1.3 times the size of the new car market, the sector holds significant growth potential. Our recent expansion of the Toyota Company Owned Outlet in Delhi and plans for more outlets across key cities underscore TKM’s strategy to create a seamless, transparent, and reliable used car market for our customers, emphasizing quality and safety-focused refurbishment.”

Geographical Insights

North America held the highest share of the used cars market. The rising demand for luxury vehicles in the U.S. and Canada has driven the market expansion. Also, various banks are providing low-interest loans for purchasing used cars along with rise in number of used car platforms is crucial for the industrial growth. Moreover, the presence of several market players such as Penske Automotive Group, Lithia Motors, Asbury Automotive Group and some others is predicted to propel the market growth in this region.

Competitive Landscape

The used cars market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of CarMax, CARS24, Carvana, Alibaba, Asbury Automotive Group, AutoNation, eBay and some others. These companies are constantly engaged in opening up new used car dealerships and adopting numerous strategies to maintain their dominance in this industry.

• According to the annual report of Asbury Automotive Group, the used vehicle segment generated a revenue of US$ 4414.30 million in 2023 that increased to US$ 5218.20 million in 2024.

Used Cars Market Segmentations

By Vehicle

• Hatchback
• Sedan
• SUV
• Others

By Fuel

• Gasoline
• Diesel
• Hybrid
• Electric
• Others

By Sales Channel

• Peer-to-peer
• Franchised dealers
• Independent dealers

By End Use

• Personal
• Commercial

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa