Used Car and Refurbished Car Sales Market - Forecast(2023 - 2028)

Refurbished Car Sales Market Overview:

On OLX India, each refurbished car listing on an average gets more than 1000 views, and almost 65% of cars finds a buyer within the first week, with 15,000 cars listed for sale per day. Average lifespan of vehicles are increasing due to advanced engineering and has reached an average of 13-17 years in 2019 from 11.4 years calculated in 2014. With additional tenure added to the performing automotive, the scope of renewed application also increases. Owing to such developments, the used car sales market has evolved from an unorganized trade avenue to a well-organized marketplace; with car dealers, franchise, and financial investors capitalizing the refurbished car sales trend. Abundant potential has driven the global used car sales market size towards a staggering $87.72 billion in 2018. A huge share of refurbished car sales market demand is sourced by the premium vehicle category that is driving the global market with a CAGR of 11.71% during the forecast period 2019-2025. Another pivotal factor adding impetus to the global market is increasing sales of battery electric, liquid petroleum gas and compressed gas vehicles. As consumers are opting for newer vehicles with alternative fuel option, the existing fleet of vehicles powdered by gasoline and diesel are being underutilized. Consequently, these vehicles are adding up to the stock of used cars and hence is a major market growth driver. Since the basic concept of refurbished and used car sales market is dependent upon the amount of vehicles left unused, this paradigm shift of consumers towards newer vehicles is a disruptive force for the market demand. 

Used Car Sales Market Outlook:

APAC with intense attendance of automotive manufacturers in India, China and Japan is the leading region in terms of demand in used car sales market. As per a study by Mahindra First Choice Wheels, India’s only organized used car sales multi-brand company, in FY2018-19, the Indian refurbished car sales market has grown progressively and has overlapped the 4 million unit mark constructing it as a bigger market than of new cars. With costs of new cars indicating an escalation, population in developing countries of APAC are witnessing a paradigm shift towards used cars, conceding 34.28% of the global refurbished car sales demand in 2018.

By vehicle type, the global used car sales market is mainly bifurcated into passenger, commercial, light commercial vehicle, and sports cars. Further analysis of the growth in each segment indicated passenger car type to be the fastest growing category, progressing with a CAGR of 13.25% going through 2025. A fundamental element motivating the growth of this segment is the growing figure of new models of passenger cars launched due to high competition among OEM manufacturers. With influx of several variants, consumers are often changing their driving options, hence adding value to the used car sales market size in terms of unit.

Refurbished Car Sales Market Growth Drivers:

· Internet Penetration- As websites such as OLX and eBay are inviting refurbished car sales dealers to mark their online presence, the reach of these vendors has multiplied. Moreover, such space on digital media asserts a tone of authenticity towards buyers. Along with such peculiarities, start-ups along with established market players have initiated the trend of verifying and offering warranties on used cars. They also partner with financial institutions to offer inexpensive automotive loans to their customers.

· Car Rental Market with its trade volume expanding is major factor adding impetus to the global used car sales market. To execute their business operations and services with minimum expense, car rental vendors are leveraging refurbished car for their operations. To curb down the initial investments, the $64.47 billion car rental market often prefer refurbished vehicles. Growing with a CAGR of 11.53% during the forecast period, this industry with global impact and presence is all set to stroke the market with abundant demand.

Used car sales Market Trends:

· OLX India in 2018 announced to expand its offline trade of used cars in India by setting up 150 outlets in 40 cities by 2021. The company is already running 30 pilot projects in 6 Indian cities underneath ‘OLX Cash My Car’ chain in merger with Berlin-based Frontier Car Group (FCG).

· To acquaint the customers with the experience of buying a new car, several start-ups in used car sales marketplace are providing its clienteles with valued added services such as warranty, authorized vehicle history and finance services. This trend is shifting the refurbished car sales market towards a well-organized structure.

Used Car Sales and Refurbished Car Sales Players Perspective:

Some of the key players operating in the refurbished car sales market are General Motors, Nissan, Toyota, Mahindra First Choice Wheels, Penske Automotive Group, Chevrolet, BMW, Asbury Automotive Group, Tata Motors Assured, Global StarLtd, and Autotrader.

Tracing lucrative opportunities in an organized pattern of business for refurbished and used car sales, several market players are investing in infrastructures in the form of stores and outlets. Similarly like OLX India, Mahindra First Choice Wheels an organized multi-brand player and the leading used car sales company in India have more than 1700 outlets in 810 Indian cities. The firm strategies to magnify this figure to 1800 outlets by 2020.

Refurbished Car Sales Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Used Car Sales Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various types of developments in Refurbished Car Sales Market, and their specific advantages to the market.

The Used Car Sales report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:

•           North America: The U.S., Canada, Mexico

•           South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

•           Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark

•           APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

•           Middle East and Africa: Israel, South Africa, Saudi Arabia

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