United States Used Car Market to Grow with a CAGR of 7.81% through 2030
Rising demand for affordable personal mobility, growing online used car
platforms, and increased availability of certified pre-owned vehicles are the
factors driving the market in the forecast period 2026–2030.
According to TechSci Research report, “United States Used Car
Market – Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”,
The United States Used Car Market was valued at USD 219.53 Billion in 2024 and
is expected to reach USD 344.71 Billion by 2030 with a CAGR of 7.81% during the
forecast period.
The United States used car market is experiencing significant shifts,
driven by changing consumer behavior and evolving market dynamics. With the
ongoing challenges in new vehicle production and availability, used cars have
become an attractive alternative for budget-conscious buyers. Rising vehicle
prices, combined with longer product lifecycles, have made used cars a more
economical choice for many consumers. Buyers are increasingly seeking
affordable vehicles that provide reliable performance, with a focus on models
that offer low maintenance costs and good fuel efficiency. This trend is
further fueled by the growing demand for vehicles that can accommodate various
lifestyle needs, from daily commutes to family road trips, at a fraction of the
cost of new vehicles.
The market is also being shaped by the increasing availability of
financing options tailored to used car buyers. Lending institutions are
offering competitive loan terms and flexible payment plans, making it easier
for consumers to access the used car market. In parallel, the rise of online
marketplaces and digital tools has enhanced the car-buying experience, allowing
customers to browse extensive inventories, compare prices, and read customer
reviews, all from the comfort of their homes. These platforms have expanded the
scope for buyers, especially those in rural areas, to find the vehicles that
best meet their needs, bridging the gap between local dealerships and the
broader market.
Another key trend influencing the market is the growing consumer
interest in vehicles that incorporate advanced safety features and technology,
which were once more common in new models. Used car buyers are prioritizing
vehicles with up-to-date infotainment systems, driver-assistance technologies,
and eco-friendly fuel options. This shift is leading to an increase in demand
for newer used cars, particularly those that are just a few years old and
equipped with the latest technological innovations.
Despite these promising trends, the market faces several obstacles. The
shortage of semiconductor chips, which has plagued the new vehicle market, is
also affecting the used car market by limiting the supply of cars available for
resale. This, combined with increased demand, has led to price inflation,
making affordability a growing concern for many consumers. Additionally, while
digital platforms are becoming essential, there are still challenges regarding
the accuracy of vehicle histories and the risk of fraud, which can undermine
buyer confidence. The market also faces competition from emerging vehicle
subscription models and car-sharing services, which offer consumers more
flexible and cost-effective alternatives to traditional vehicle ownership.
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United States Used Car Market
Is Segmented by Propulsion, Vehicle Type, Sales Channel, Sales Medium, and By Region.
In 2024, hybrid vehicles
have emerged as the fastest-growing segment in the United States used car
market, driven by consumer demand for more fuel-efficient and eco-friendly
options. As fuel prices remain volatile, hybrid cars offer an attractive
solution by blending the advantages of traditional internal combustion engines
(ICE) with electric propulsion. This results in better fuel economy without
compromising on the convenience of refueling at gas stations. Hybrid vehicles
are especially appealing to buyers seeking to reduce their carbon footprint
while maintaining the flexibility and range associated with conventional
vehicles. With advancements in hybrid technology and improved battery
efficiency, consumers are increasingly turning to these vehicles as an
affordable, environmentally conscious option.
The rapid growth of hybrid
vehicles in the used car market is further supported by rising environmental
awareness and government incentives for eco-friendly vehicles. In addition, the
availability of hybrids with lower mileage and affordable price points is
attracting a broader range of buyers. Hybrid vehicles' ability to offer a
smoother transition between conventional and electric powertrains has
positioned them as an appealing choice for consumers not yet ready to fully
commit to electric vehicles (EVs). As battery technology improves, the residual
value of hybrid cars continues to be more stable compared to electric vehicles,
which experience higher depreciation rates, making them an attractive option in
the pre-owned market.
When looking at regional
growth, the Midwest has emerged as the fastest-growing region for used car
sales in 2024. The region's steady economic recovery and an increasing number
of consumers seeking more budget-friendly transportation solutions have contributed
to this growth. The demand for used cars in the Midwest is particularly high
for vehicles that offer long-term reliability and lower operating costs. The
region's preference for larger vehicles, such as SUVs and trucks, aligns with
the broader national trend of consumers opting for versatile, fuel-efficient
used cars. With fewer concerns about air quality compared to coastal regions,
the Midwest's market has shown a strong preference for hybrids, offering a
balanced approach to fuel efficiency and practicality. The growing availability
of hybrid vehicles at competitive prices has been a major factor in the
Midwest’s fast-paced market growth in 2024.
Major Market Players
Operating in United States Used Car Market Are:
- CV CarMax Enterprise
Services, LLC
- Carvana Operations HC LLC
- AutoNation, Inc.
- Sonic Automotive, Inc
- DriveTime Automotive Group
- Penske Automotive Group,
Inc.
- Lithia Motors, Inc.
- Asbury Automotive Group
- Hertz Global Holdings, Inc.
- Avis Budget Group, Inc.
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The United States used car market is really
thriving right now. People are more focused on getting great value for their
money, and used cars offer exactly that. With the rise in fuel prices and
interest rates, hybrid and fuel-efficient vehicles are becoming top choices for
many buyers. The flexibility and affordability of used cars are key reasons
behind this growth, and it's clear that consumers are making smart decisions
when it comes to their transportation needs, said Mr. Karan Chechi, Research
Director of TechSci Research, a research-based global management consulting
firm.
The report titled “United States Used Car Market –
Size, Share, Trends, Opportunity, and Forecast, Segmented By Propulsion (ICE,
Electric, Hybrid), By Vehicle Type (Hatchback, Sedan, SUV/MPV), By Sales
Channel (Dealerships/Broker, C2C), By Sales Medium (Offline, Online), By
Region, By Competition, 2020-2030F”, assesses the market's future growth
potential and provides data on market size, trends, and forecasts. It aims to
offer comprehensive market insights, helping decision-makers make informed
investment choices. The report also highlights emerging trends, key drivers,
challenges, and opportunities in the United States Used Car Market.
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