Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Used Car Market Report is Segmented by Vehicle Type (Hatchback, Sedan, and More), Vendor Type (Organized and Unorganized), Fuel Type (Gasoline, Diesel, and More), Sales Channel (Online Platforms and More), Vehicle Age (Below 3 Years and More), Mileage (Less Than 20, 000 Kms and More), Price Band (Less Than USD 10, 000 and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Used Car Market Size and Share

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Compare market size and growth of Used Car Market with other markets in Automotive Industry

Used Car Market Analysis by Mordor Intelligence

The Used Car Market was valued at USD 2.31 trillion in 2025 and is forecast to climb to USD 2.98 trillion by 2030, translating into a steady 5.20% CAGR. This trajectory confirms that the used car market remains resilient despite inflationary pressure on consumers and supply-chain volatility. Growth is supported by the widening price gap between new and pre-owned vehicles, the rise of digital retail platforms, and the maturing of certified-pre-owned (CPO) programs that ease quality concerns for second owners. Asia-Pacific delivers the fastest regional expansion as rising income levels and rapid urbanisation push first-time buyers toward affordable mobility. Meanwhile, supply shortages of near-new vehicles following the pandemic increase residual values and strengthen dealer pricing power, though they also constrain inventory turnover for many vendors.

Key Report Takeaways

  • By vehicle type, SUVs and MPVs led with 48.21% used car market share in 2024, and the segment is projected to advance at the fastest 9.50% CAGR between 2025 and 2030.
  • By vendor type, the unorganised channel commanded 68.54% of the used car market size in 2024, while organised retailers post the highest 12.05% CAGR through 2030.
  • By fuel type, gasoline vehicles accounted for 65.65% of the used car market size in 2024; electric models register the quickest 16.40% CAGR over the forecast period.
  • By sales channel, offline dealerships captured 70.38% of transactions in 2024, yet online platforms will record a 14.20% CAGR to 2030.
  • By vehicle age, 3–5-year cars represented 38.64% of the used car market share in 2024, whereas the below-3-year cohort shows the fastest 12.30% CAGR.
  • By mileage, units in the 20,001–50,000 km band held a 40.20% share in 2024, while vehicles below 20,000 km logged a 10.30% CAGR.
  • By price band, cars priced below USD 10,000 accounted for 48.92% share in 2024; the above-USD 30,000 tier expands at an 8.70% CAGR to 2030.
  • By geography, North America contributed 38.06% of 2024 value, yet Asia-Pacific delivers the highest 7.90% regional CAGR through 2030.

Segment Analysis

By Vehicle Type: SUV Dominance Reshapes Market Dynamics

SUVs and MPVs controlled 48.21% used car market share in 2024. The segment is projected to grow at a robust 9.50% CAGR as automakers release successive generations of compact crossovers that combine fuel efficiency with higher seating. The Tesla Model Y and Ford Mustang Mach-E are now appearing in significant quantities, signalling that electric SUVs will deepen segment leadership. Sedans retain relevance among budget shoppers and ride-hailing fleets, while hatchbacks appeal to city commuters seeking lower operating costs and easier parking.

The continuing tilt toward larger body styles drives changes in dealership infrastructure. Service bays require higher-capacity lifts and more storage space for bulkier panels. Logistics partners also adjust carrier configurations to fit more SUVs per haul. Marketing strategies emphasise versatility and family safety, themes that resonate with a wider demographic spread in the used car market.

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Note: Segment Shares of All Individual Segments Available Upon Report Purchase

By Vendor Type: Organised Players Gain Ground Through Technology

Unorganised dealers held 68.54% of the used car market size in 2024, yet organised chains are forecast for a 12.05% CAGR to 2030 due to superior transparency and nationwide warranty reach. Digital inspection reports, seven-day return policies, and integrated finance offer a differentiation between formal retailers and kerbside sellers. In India, the organised share is set to climb from 30% to 50% by 2030 as platforms such as Cars24 expand rural footprints and introduce doorstep pick-up services.

Capital expenditure on proprietary software and reconditioning hubs remains high. As a result, private equity continues to inject funds into players with network scale and technology roadmaps. Smaller independent lots face margin compression and often pivot to niche segments like vintage cars or commercial vans.

By Fuel Type: Electric Vehicles Emerge Despite Infrastructure Constraints

Gasoline units still command 65.65% of the used car market size, but pre-owned EVs outpace other fuels with a 16.40% CAGR to 2030. Early adopters are trading first-generation models for longer-range successors, releasing supply into dealer pipelines. Diesel volumes taper as low-emission zones expand in Europe, while hybrids secure a middle ground for buyers wary of limited charging infrastructure.

Battery-health grading becomes a decisive factor in price discovery. Vehicles with state-of-health scores above 90% secure premiums, whereas those below 80% face steep discounts. Vendors advertise complimentary home-charger bundles and discounted utility tariffs to sweeten EV deals in regions where public charging density remains low.

By Sales Channel: Digital Transformation Accelerates

Physical dealerships accounted for 70.38% of transactions in 2024. Online sales, however, are expected to rise at 14.20% CAGR through 2030 as contactless buying gains trust. CarMax’s omnichannel model lets customers reserve vehicles via mobile, complete paperwork online, and finalise pick-up at any branch in the network. Urban consumers gravitate toward end-to-end online journeys, whereas rural shoppers prefer a test-drive before payment.

Chatbots and AI video walkarounds shorten decision cycles. Some platforms integrate insurance quotes and instant loan approvals at checkout. Last-mile delivery partnerships with logistics firms ensure that cars reach buyers within 72 hours in most tier-one cities.

By Vehicle Age: Sweet Spot Emerges in 3–5-Year Range

The 3–5-year cohort captured 38.64% of the used car market share in 2024, benefiting from residual factory warranties and modern infotainment. The below 3-year bracket shows the fastest 12.30% CAGR to 2030 as off-lease returns swell supply. OEMs leverage the pool to seed CPO pipelines and retain customers through loyalty finance programs.

Older bands above eight years hold steady among cost-conscious private buyers and small business fleets. Yet rising repair bills and tightening emission rules encourage scrappage in several mature markets, nudging the average vehicle age lower over time.

Used Car Market by price band
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Note: Segment Shares of All Individual Segments Available Upon Report Purchase

By Mileage: Low-Mileage Vehicles Command Premium

Cars with 20,001–50,000 km on the odometer represented 40.20% of the used car market size in 2024. Remote work reduced annual driving, producing more vehicles in the sub-20,000 km category, which exhibits a 10.30% CAGR. Dealers highlight telematics logs and service stamps to verify light usage. High-mileage cars above 100,000 km find buyers in rural areas where affordable mechanical labour offsets higher upkeep.

Mileage bands also influence warranty pricing. Many retailers now bundle three-year service plans into units under 50,000 km to lock in service lane revenues while reassuring buyers on maintenance costs.

By Price Band: Affordability Drives Volume Growth

Vehicles under USD 10,000 held 48.92% share of total transactions in 2024. Middle-tier pricing from USD 10,001 to USD 30,000 captures family needs for newer safety features. Luxury depreciation funnels premium sedans and electric SUVs into the above-USD 30,000 band, which is set for 8.70% CAGR through 2030. Subscription formats are emerging to distribute the higher sticker over fixed monthly fees without ownership burden.

Credit constraints dictate segment elasticity. Interest-rate drops translate quickly into higher ticket bands as qualified borrowers upgrade to younger, lower-mileage cars. Conversely, spikes in rates push shoppers down the pricing ladder and extend loan terms.

Geography Analysis

The North American used car market remains the largest regional contributor with a 38.06% share in 2024, benefiting from a steady flow of lease returns and a mature financing infrastructure that supports rapid inventory turnover. Growth is moderating as vehicle ownership levels approach saturation, yet omnichannel retailers keep adding capacity and deploy AI-driven pricing engines to smooth wholesale volatility. Europe follows in value terms, but its expansion is shaped by emission legislation that pushes buyers away from older diesel models toward low-emission gasoline and hybrid units. Cross-border trade inside the bloc enhances liquidity, particularly for right-hand-drive countries sourcing stock from the United Kingdom after BREXIT. At the same time, dealer groups accelerate consolidation to standardise certified-pre-owned protocols and compete with online entrants.

The Asia-Pacific region delivers the fastest growth with 7.90% among all geographies. China’s used car market is projected to reach USD 385 billion in 2025 after regulators scrapped province-level transfer restrictions, unlocking intercity trades that shorten days-to-sale for Global Fleet. India aims for an INR 5 trillion turnover (USD 60.2 billion) by FY 2028 as GST harmonisation and smartphone penetration expand digital listings. Japan leverages a weak yen to export five-year-old compact SUVs to Africa and Oceania, cushioning domestic price pressure and widening the export-hub role of local auction houses. The result is a rising Asia-Pacific used car market size that offsets slower momentum in mature Western economies.

South America is regaining momentum as macro stability returns, with Brazil recording a 10-year high in new-vehicle sales during 2024 that will feed future supply for the regional used car market, Coatings World. Financing spreads remain wide, and currency volatility complicates inventory sourcing, prompting dealers to rely more on domestic lease returns and ex-rental fleets. In the Middle East and Africa, the United Arab Emirates and Saudi Arabia dominate volumes as Japanese and Korean brands enjoy strong resale values under harsh climate conditions. Dubai is piloting blockchain-based digital titles to curb odometer fraud, while South Africa’s decade-long factory warranties boost confidence in late-model purchases. Together, these emerging regions provide long-term upside, although infrastructure gaps and credit access continue to restrain the used car market share capture.

Used Car Market Growth by Region
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Competitive Landscape

The used car market stays fragmented. CarMax, followed by Lithia Motors, AutoNation, Penske Automotive, and Carvana. Vertical integration defines recent strategy. Carvana’s acquisition of ADESA adds wholesale capacity, reconditioning hubs, and storage yards that lower per-unit logistics costs.

Technology adoption differentiates competitors more than physical footprint. Avery, an AI acquisition engine launched by AutoVision in 2025, predicts auction bidding ceilings and retail exit prices, reducing appraisal errors. CarMax rolled out real-time battery-state dashboards to build buyer trust in its growing EV inventory. Penske Automotive invests in dealer management software through Pinewood North America to tighten inventory turns and finance-and-insurance attachments.

Cross-industry linkages are forming. eBay taps its global marketplace to facilitate consumer-to-consumer transactions, targeting lower price segments unsuited to vertically-integrated retailers. Honda and Nissan disclosed merger talks in December 2024, hinting at joint CPO networks that could pool inspection data and marketing budgets. Industry observers expect private equity to accelerate roll-ups of regional dealer clusters, with technology spend and data analytics proficiency as primary valuation drivers.

Used Car Industry Leaders

  1. CarMax Inc.

  2. Cox Automotive

  3. AutoNation

  4. Arnold Clark Automobiles

  5. Lithia UK

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • May 2025: Group 1 Automotive bought three luxury dealerships in Florida and Texas, adding USD 330 million in annual revenue. eBay acquired Caramel for an undisclosed sum to streamline private-party online car sales.
  • February 2025: ADESA expanded its timed online auction product ADESA Clear, adding AI-based vehicle recommendations.
  • January 2025: eBay acquired Caramel for an undisclosed sum to streamline private-party online car sales.

Table of Contents for Used Car Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising new-car prices
    • 4.2.2 Expansion of digital retail platforms
    • 4.2.3 OEM certified-pre-owned penetration
    • 4.2.4 Surging personal-mobility demand in emerging markets
    • 4.2.5 OTA EV battery-health certification
    • 4.2.6 OEM buy-back guarantees
  • 4.3 Market Restraints
    • 4.3.1 Limited used-car financing
    • 4.3.2 Stricter import-emission rules
    • 4.3.3 Supply crunch of near-new vehicles post-COVID production slump
    • 4.3.4 Infotainment data-privacy concerns
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers/Consumers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts (Value (USD) and Volume (Units))

  • 5.1 By Vehicle Type
    • 5.1.1 Hatchbacks
    • 5.1.2 Sedans
    • 5.1.3 SUVs & MPVs
  • 5.2 By Vendor Type
    • 5.2.1 Organized
    • 5.2.2 Unorganized
  • 5.3 By Fuel Type
    • 5.3.1 Gasoline
    • 5.3.2 Diesel
    • 5.3.3 Hybrid
    • 5.3.4 Electric
    • 5.3.5 Other Alternative Fuels
  • 5.4 By Sales Channel
    • 5.4.1 Online Platforms
    • 5.4.2 Offline Dealerships
  • 5.5 By Vehicle Age
    • 5.5.1 Below 3 Years
    • 5.5.2 3 - 5 Years
    • 5.5.3 5 - 8 Years
    • 5.5.4 Above 8 Years
  • 5.6 By Mileage
    • 5.6.1 Less Than 20,000 km
    • 5.6.2 20,001 - 50,000 km
    • 5.6.3 Above 50,000 km
  • 5.7 By Price Band
    • 5.7.1 Less Than USD 10,000
    • 5.7.2 USD 10,001 - USD 30,000
    • 5.7.3 Above USD 30,000
  • 5.8 By Geography
    • 5.8.1 North America
    • 5.8.1.1 United States
    • 5.8.1.2 Canada
    • 5.8.1.3 Rest of North America
    • 5.8.2 South America
    • 5.8.2.1 Brazil
    • 5.8.2.2 Argentina
    • 5.8.2.3 Rest of South America
    • 5.8.3 Europe
    • 5.8.3.1 Germany
    • 5.8.3.2 United Kingdom
    • 5.8.3.3 France
    • 5.8.3.4 Spain
    • 5.8.3.5 Russia
    • 5.8.3.6 Rest of Europe
    • 5.8.4 Asia-Pacific
    • 5.8.4.1 China
    • 5.8.4.2 India
    • 5.8.4.3 Japan
    • 5.8.4.4 South Korea
    • 5.8.4.5 Rest of Asia-Pacific
    • 5.8.5 Middle East
    • 5.8.5.1 Saudi Arabia
    • 5.8.5.2 United Arab Emirates
    • 5.8.5.3 South Africa
    • 5.8.5.4 Egypt
    • 5.8.5.5 Turkey
    • 5.8.5.6 Rest of the Middle East

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
    • 6.4.1 CarMax Inc.
    • 6.4.2 Cox Automotive
    • 6.4.3 AutoNation
    • 6.4.4 Penske Automotive Group
    • 6.4.5 Asbury Automotive Group
    • 6.4.6 Hertz Global Holdings
    • 6.4.7 Pendragon PLC
    • 6.4.8 Arnold Clark Automobiles
    • 6.4.9 Emil Frey AG
    • 6.4.10 Mahindra First Choice Wheels
    • 6.4.11 Maruti Suzuki True Value
    • 6.4.12 Carro
    • 6.4.13 Cars24
    • 6.4.14 AUTO1 Group
    • 6.4.15 Cazoo Group
    • 6.4.16 ACV Auctions
    • 6.4.17 BCA Marketplace
    • 6.4.18 Copart Inc.
    • 6.4.19 Vroom Inc.

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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Global Used Car Market Report Scope

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. On the other hand, a certified pre-owned (CPO) vehicle is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.

The used car market is segmented by vehicle type, vendor type, and geography. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, the market size and forecast have been done based on value (USD billion).

By Vehicle Type Hatchbacks
Sedans
SUVs & MPVs
By Vendor Type Organized
Unorganized
By Fuel Type Gasoline
Diesel
Hybrid
Electric
Other Alternative Fuels
By Sales Channel Online Platforms
Offline Dealerships
By Vehicle Age Below 3 Years
3 - 5 Years
5 - 8 Years
Above 8 Years
By Mileage Less Than 20,000 km
20,001 - 50,000 km
Above 50,000 km
By Price Band Less Than USD 10,000
USD 10,001 - USD 30,000
Above USD 30,000
By Geography North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
Middle East Saudi Arabia
United Arab Emirates
South Africa
Egypt
Turkey
Rest of the Middle East
By Vehicle Type
Hatchbacks
Sedans
SUVs & MPVs
By Vendor Type
Organized
Unorganized
By Fuel Type
Gasoline
Diesel
Hybrid
Electric
Other Alternative Fuels
By Sales Channel
Online Platforms
Offline Dealerships
By Vehicle Age
Below 3 Years
3 - 5 Years
5 - 8 Years
Above 8 Years
By Mileage
Less Than 20,000 km
20,001 - 50,000 km
Above 50,000 km
By Price Band
Less Than USD 10,000
USD 10,001 - USD 30,000
Above USD 30,000
By Geography
North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
Middle East Saudi Arabia
United Arab Emirates
South Africa
Egypt
Turkey
Rest of the Middle East
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Key Questions Answered in the Report

What is the current value of the used car market?

The used car market reached USD 2.31 trillion in 2025 and is projected to rise to USD 2.98 trillion by 2030 at a 5.2% CAGR.

Which vehicle type leads in the used car market?

SUVs and MPVs hold the lead with 48.21% share in 2024 and are expected to grow at 9.50% CAGR through 2030.

How fast is the online sales channel growing?

Transactions completed fully online are increasing at 14.20% CAGR, although physical dealerships still conduct 70.38% of sales as of 2024.

Which fuel type shows the highest growth in the used car market?

Electric vehicles record the fastest expansion with a forecast 16.40% CAGR to 2030, supported by battery-health certification tools.

What financing trends affect used car purchases?

Average used-car loan rates reached 14.73% in 2025, tightening credit access and encouraging alternative lending models such as peer-to-peer platforms.

Page last updated on: June 18, 2025

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