Market Size of Singapore Used Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Singapore Used Car Market Analysis
The Singapore used car market was valued at USD 40.03 billion in 2021 and is expected to reach USD 51.43 billion by 2027 registering a CAGR of above 4% during the forecast period (2022 - 2027).
The COVID-19 pandemic had a mixed impact on the market, during 2020 due to lockdowns and restrictions the demand in the market halted. However, the pandemic influenced consumer behavior positively towards owning a vehicle over public transport indicating an increase in potential customers of the used cars market. By first half of 2021, the demand for used cars started picking up pace as majority of these people who could not afford a new car in the first place, started inclining towards the most optimal solution available, that is, purchasing pre-owned vehicles.
Over the medium term, factors such as increasing purchasing power and easy availability of finance are expected to contribute positively to the market's growth. Further, rising digitalization, internet penetration, and an increase in online players are likely to act as critical factors in boosting used cars sales as they have made the overall process of selling and buying used cars quite convenient and prompt.
However, recent incidences like surge in prices of used cars across the country in wake of rising along certificate of entitlement (COE) premiums and large cars COEs breached the USD 100,000 mark indicate signs of weakening market. Such instances are forcing dealers to uphold prices on cars they had bought when the market price was high, these factors if prolonged estimated to act as potential challenges.
Furthermore, the rise in the value-added service offering and variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the region. However, the higher interest rates might turn around some potential customers hampering the market's growth.Another major factor aiding the market growth is emergence of various Non-Banking Finance Companies offering low-interest rate compared to banks and flexible installment options.
Central Singapore followed by North East and North West community development council expected to see positive growth during the forecast period. The demand expected to be driven by high net worth individuals and consumers inclination towards immersive purchase experiences provided by several used car dealers operating across these regions in the country.
