Used Car Market to Record CAGR of 8.7% and Increase in Revenue by 2030

With the increasing lifespan of vehicles and the falling demand for new automobiles, the sales of used cars are rising sharply across the world. Moreover, the surging popularity of e-commerce and online technologies, on account of the growing penetration of the internet, has massively propelled the sales of used cars in several countries. According to the World Bank, around 49.0% of the people all over the world were using the internet in 2017. The e-commerce platforms are allowing used car owners and dealers to advertise their automobiles and raise public awareness about these vehicles.

This not only smoothens the overall sales process but also enables a greater number of stakeholders to buy and sell cars online. Besides, the entry of organized dealers in the used car market has also contributed massively toward the booming sales of used cars. In countries such as India, Mexico, Brazil, and China, unorganized sellers have always dominated the industry. Traditionally, the primary stakeholders were individuals instead of organizations, which made it very difficult to establish trust between buyers and sellers. 

Geographically, the sales of used cars were observed to be the highest in North America during the last few years. Whereas, the demand for these cars is predicted to explode in the Latin America, Middle East, & Africa (LAMEA) region in the coming years. This will be because of the booming manufacturing of automobiles and surging disposable income of people in developing countries such as Mexico, Argentina, and Brazil. Furthermore, many unorganized sellers are conducting their operations in Middle Eastern countries such as the U.A.E.

Hence, it is safe to say that the sales of used cars will shoot up in the coming years, primarily because of the growing operations of organized sellers and the surging popularity of e-commerce and online platforms all over the world.