A car that has had one or more retail owners in the past is referred to as a used, pre-owned, or second hand car. Among the places you can purchase used cars are auctions, private sales, buy here pay dealerships, franchised and independent auto dealers, rental car agencies, and leasing offices. Some auto dealers provide "no-haggle prices," "certified" pre-owned vehicles, and extended service contracts or warranties. With the advent of electric and hybrid vehicles as well as technological advancements like the internet, the market has altered for consumers. Buyers are also becoming more aware of the car's residual value, the cost of quality financing, availability, purchase price, and, sometimes, the seller's profit margin at the time of a closing transaction.
North America Used Car Market Driving Factors and Challenges
Drivers: Some of the reasons that are predicted to propel the expansion of the used car industry in North America include the high cost of new cars, concerns about affordability, and an increase in demand for off-lease cars and subscription services from car dealerships, franchises, and leasing offices. Both rich and developing nations have seen dramatic increases in the ratio of used to new vehicles in recent years. Additionally, franchised dealers are contributing considerably to the expansion of the used automobile market through access to high-quality contracts, online inventory pooling, OEM participation in certification and marketing programs, and online dealer interaction.
Challenges: Plenty of challenges affect the dynamics and operations of the used car industry in North America. Supply and demand volatility, which is impacted by a number of variables including the state of the economy, customer preferences, and legislative changes, is a major problem. The amounts of inventory and prices can fluctuate in response to a variety of circumstances, including trade-in volumes, lease returns, and rental fleet disposals. Shifts in consumer preferences toward alternate modes of transportation, economic downturns, and variations in disposable income can all have an impact on demand and influence consumer behaviour. The complexity of car technology is growing, and the associated maintenance and repair expenses present another difficulty.
Impact of COVID-19 on North America Used Car Market
The COVID-19 outbreak had an effect on the used car market in North America and resulted in significant changes in customer behaviour and market dynamics. Many potential buyers postponed purchases because of widespread lockdowns and economic uncertainty, which led to a decrease in the demand for used cars. During the early stages of the epidemic, when people prioritized necessities above discretionary spending, this decline was particularly apparent. Production stops and disruptions in the automotive supply chain caused more market problems by affecting the supply of new and used cars.
North America Used Car Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Asbury Automotive Group, AutoNation, Inc, CarMax Business Services, Cox Automotive, eBay Inc, Group1 Automotive, Inc., HELLMAN & FRIEDMAN LLC, Hendrick Automotive Group, Lithia Motors, Inc, Manheim, PENDRAGON, Sun Toyota, THE HERTZ CORPORATION, TrueCar, Inc, VROOM.
North America Used Car Market Segmentation:
By Vendor Type: Based on the Vendor Type, North America Used Car Market is segmented as; Organized, Unorganized.
By Propulsion: Based on the Propulsion, North America Used Car Market is segmented as; Petrol, Diesel, CNG, LPG, Electric, Others.
By Dealership: Based on the Dealership, North America Used Car Market is segmented as; Franchised, Independent.
By Sales Channel: Based on the Sales Channel, North America Used Car Market is segmented as; Online, Offline.
By Vehicle Type: Based on the Vehicle Type, North America Used Car Market is segmented as; Passenger Car, LC, HCV, Electric Vehicle.
By Region: This research also includes data for United States, Canada, Mexico.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.