Market Size of Used Car Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.78 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Used Car Financing Market Analysis
The Global Used Car Financing Market is valued at USD 244.17 billion and is expected to reach USD 453.08 billion over the coming five years, with a combined CAGR of 10.78% during the same period.
The global used car market is moderately consolidated with several OEMs, auction houses, and pre-owned dealers who strive to expand their fleet size to offer a wide pool of financing opportunities to their clients.
During COVID-19, globally, used car financing witnessed a steady decline owing to the spread of the virus, and people avoided purchasing cars amid the economic slowdown. In addition, markets, showrooms, and auction events were closed down as strict lockdown measures were imposed by the regional government. Although, after Q1 2021, everything was on track, with the used car financing business achieving the pre-pandemic growth rate.
Major consumers around the globe are facing financial instability post-pandemic, which, in turn, has boosted the demand for used cars. This is likely to be a major growth factor for the market. In addition, the rising consumer preference toward owning a personal vehicle and avoiding public transportation is also identified as a key fueling factor for the global used car market. Ownership of cars, which used to be a status symbol long ago, has become a necessity in recent times and is deeply identified by the key financers and pre-owned car owners.
Furthermore, the Asia-Pacific region has been identified as the epi-center of the rising demand for used cars. The region holds a population density of middle and lower-income group classes that are anticipated to hold a large share in financing used cars.
Thus, due to the above mentioned factors, the demand in the market studied is expected to witness a high growth rate over the forecast period.
