North America Used Car Financing Market Size

North America Used Car Financing Market Analysis

The North American Used Car Financing Market is valued at USD 259.71 billion and is expected to reach USD 413.23 billion over the coming five years, with a combined CAGR of 8.26% during the same period.

During COVID-19, North America's used car financing witnessed a steady decline, owing to the spread of the virus, and people avoided purchasing cars amid an economic slowdown. In addition, markets, showrooms, and auction events were closed as strict lockdown measures were imposed by the regional government. Although, after Q1 2021, everything was again on track, with the used car financing business back to a growth phase again.

The region is dominated by luxury case sales, which has been the key factor driving the used car financing marketplace. The consumer who opts to purchase luxury cars looks for a used car option to witness a reduction in the overall cost. This has helped the financiers to offer better interest rates and get ownership of the same. Several factors have influenced the growth of the market, including the pandemic, changing demographics and ambitions, the addition of first-time buyers, and the availability of various financing options by companies across the used car landscape.

Considering these factors, the United States is anticipated to hold the highest growth rate in the used car financing market in North America. People in the United States exhibit the highest income and are more exposed to owing luxury sedans in the used car segment. This has elevated the combined demand for financing services to ease the financial burden on individuals.

Considering these factors, the demand for used car financing in North America is expected to witness a high growth rate during the forecast period.