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

The United States Used Car Market Report is Segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Hybrid, and Battery Electric), Body Type (Hatchback, Sedan, and More), Sales Channel (Online and Offline), and State. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

United States Used Car Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
View Global Report

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

United States Used Car Market Analysis by Mordor Intelligence

The US Used Car Market size is estimated at USD 1.05 trillion in 2025, and is expected to reach USD 1.20 trillion by 2030, at a CAGR of 2.71% during the forecast period (2025-2030). Consumers continue to migrate toward pre-owned vehicles as the average monthly payment for new cars reached USD 756 in 2025, widening the affordability gap that favors late-model used inventory. Organized dealer groups leverage scale to deploy certified pre-owned (CPO) programs, dynamic-pricing engines, and omnichannel sales journeys that improve gross profit despite soft unit volumes.

Key Report Takeaways

  • By vendor type, the organized segment held 51.27% of the United States used car market share in 2024 and is projected to expand at a 2.86% CAGR through 2030.
  • By fuel type, the gasoline segment dominated with 84.28% share of the United States used car market in 2024, while Battery-Electric vehicles are projected to expand at the fastest growth rate of 3.10% CAGR through 2030.
  • By body type, the pickup and van segment held 43.27% of the United States used car market share in 2024 and is projected to expand at 2.76% CAGR through 2030.
  • By sales channel, offline channels dominated with 66.51% of the United States used car market share in 2024, while Online channels are projected to expand at the fastest growth rate of 5.31% CAGR through 2030.
  • By State, California led with 24.17% of the United States used car market share in 2024, while Texas is projected to expand at the fastest growth rate of 2.74% CAGR through 2030. 

Segment Analysis

By Vendor Type: Organized Players Leverage Scale Advantages

The organized segment captured 51.27% of 2024 revenue, reflecting dealer groups’ ability to harness data analytics, bulk procurement, and cross-state logistics—capabilities that smaller independents cannot easily replicate. CarMax, with 269,000 vehicle purchases in fiscal 2025, elevated its unit sourcing by 15.3% while delivering 81% earnings growth, underscoring operating leverage. Unorganized operators still supply nearly half of transactions, but the compliance burden of title processing, data security, and emissions testing is rising, nudging many toward aggregator or wholesale exit options. The organized cohort is forecast to expand at 2.86% CAGR through 2030, closely mirroring overall United States used car market growth.

Economies of scale also drive technology adoption: Avery’s AI pricing suite is now live across most CarMax rooftops, delivering valuation accuracy within USD 275 of the eventual transaction price. Carvana’s integration of ADESA auction lanes widens its captive reconditioning network to 56 sites nationwide, shortening delivery lead times to four calendar days in Tier-1 metros. This infrastructure edge supports the long-term shift in United States used car market share toward corporatized retailers that can both buy and sell vehicles at national scale.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Fuel Type: Gasoline Dominance Faces Electric Disruption

Gasoline units still account for 84.28% of all used-car transactions because the legacy fleet remains overwhelmingly internal-combustion. Nonetheless, the battery-electric slice is advancing at 3.10% CAGR through 2030, the fastest segment in the United States used car market. Price deflation of 18% during 2024, coupled with the USD 4,000 federal credit, opened the EV segment to middle-income households. Dealers now consider battery-state-of-health tools as essential as OBD scanners, and Rivian’s certified program bundles telematics data to prove pack longevity, reducing buyer anxiety.

Diesel inventories remain niche outside commercial buyer circles, while hybrids function as a pragmatic bridge for drivers without home charging. Volkswagen’s USD 5.8 billion investment in Rivian by 2027, signals OEM conviction that a robust secondary market protects residual values and reduces total-cost-of-ownership concerns—factors that ultimately accelerate electrification’s share of the United States used car market size.

By Body Type: Pickup and Van Segment Drives Utility Demand

Pickup and van captured 43.27% of 2024 sales, the largest slice of the overall body-type mix, and are projected to post a 2.76% CAGR through 2030, reflecting enduring demand from construction firms, logistics fleets, outdoor enthusiasts, and large families that require payload or seating versatility. Residual-value curves for full-size pickups exceed the all-vehicle average by more than 400 basis points, so a 4-year-old half-ton truck typically retains 63% of its original transaction price, cushioning depreciation risk for second owners and supporting the United States used car market size for work-ready vehicles.

OEMs diversify SUV platforms from compact crossovers to full-size luxury, ensuring depth across income brackets. AutoNation cited SUVs as a margin pillar in Q4 2024, crediting broad trim availability. Electric SUVs add a further catalyst, pairing environmental credentials with practicality.

United States Used Car Market: Market Share by Body Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Sales Channel: Digital Transformation Accelerates Online Growth

Offline showrooms still processed 66.51% of 2024 deals because tactile inspection, on-the-spot financing, and trade-in valuation remain central to many shoppers. Yet online channels are scaling at 5.31% CAGR—outpacing brick-and-mortar growth—thanks to seamless e-commerce flows and next-day delivery windows. Carvana’s Q1 2025 revenue rose 38% to USD 4.232 billion on improved operational uptime, while Amazon’s Hyundai pilot hints at tech-giant entry that could redraw channel boundaries.

Omnichannel is emerging as the default path: CarMax reports that 60% of buyers now begin online and finalize in-store, whereas pure-play sites add physical pickup centers for reconditioning. This hybrid model aligns with evolving shopper expectations and stabilizes conversion metrics, elevating the strategic importance of a digital footprint within the broader United States used car market.

Geography Analysis

California maintained a 24.17% sales share in 2024, fueled by stringent emissions policies, dense dealer networks, and a tech-savvy consumer base that demands late-model features. The state’s Smog Check program processed 973,655 tests in March 2025 with a 8.85% failure rate, triggering immediate replacement transactions that bolster the United States used car market. High turnover promotes frequent inventory cycling, and zero-emission mandates cultivate premium pricing for compliant hybrids and EVs.

Texas is expected to grow fastest at 2.74% CAGR through 2030, combining favorable tax policy, expanding energy payrolls, and demographic inflows from high-cost coastal metros. Lithia Motors’ acquisition spree in the Sun Belt illustrates dealer belief in robust, region-wide demand arteries across the pickup truck and SUV segments. Texas’ central geography enables cost-efficient, two-day ground transport to surrounding states, improving stock rotation velocity.

Florida, New York, Illinois, Pennsylvania, Ohio, Georgia, North Carolina, and Washington together supply a significant demand base that diversifies revenue risk for national chains. Florida’s retiree migration patterns create seasonal peaks that favor flexible inventory planning. New York’s dense urban layout pushes dealers toward off-site storage and online completion, while Georgia and North Carolina benefit from manufacturing expansions that lift mid-income disposable spending. Washington mirrors California’s clean-fuel emphasis, rewarding dealers adept in battery health analytics. Aligning sourcing with local tastes remains paramount to preserve gross margins within the United States used car market.

Competitive Landscape

Competition remains high and organized retailers are focused on consolidating their market share through M&A and digital tooling. Carvana’s USD 2.2 billion ADESA buyout embeds wholesale capability, lowering third-party auction fees and accelerating time-to-sale. AutoNation broadened its CPO footprint via strategic store buys, fortifying access to brand-certified channels.

Competitive playbooks now fall into three clusters: legacy dealers banking on local service ties, digital natives emphasizing transparency and delivery, and hybrids marrying both. Amazon’s Hyundai partnership exemplifies a technology entrant testing automotive waters with existing logistics muscle. OEMs like Rivian are inserting factory-backed used programs that bypass franchised networks, challenging traditional supply dominance. 

Meanwhile, niche gaps persist in rural delivery, commercial upfits, and luxury authentication segments, still underserved by the big three consolidators. Sustained tech investment and selective dealership roll-ups will continue to tilt bargaining power toward scaled players within the United States used car market.

United States Used Car Industry Leaders

  1. CarMax, Inc.

  2. CarBravo

  3. Carvana Co.

  4. AutoNation Inc.

  5. Sonic Automotive

  6. *Disclaimer: Major Players sorted in no particular order
United States Used Car Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • April 2025: AutoNation acquired Groove Ford and Groove Mazda in Colorado, adding USD 219 million in annual revenue and lifting its state footprint to 22 dealerships.
  • March 2025: Carvana purchased a Stellantis franchise, granting direct CPO rights and closed-auction access to diversify inventory pipelines.
  • February 2025: ADESA expanded its AI-enhanced wholesale platform, ADESA Clear, offering richer condition reports and adaptive price guidance to dealer clients.

Table of Contents for United States 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-vehicle prices driving value-seeking buyers
    • 4.2.2 Expansion of certified pre-owned (CPO) programs
    • 4.2.3 IRA USD 4k used-EV credit energizing secondary EV demand
    • 4.2.4 OEM subscription-to-resale loops boosting late-model supply
    • 4.2.5 AI-driven dynamic-pricing engines lifting dealer profitability
    • 4.2.6 Dealer-built home-delivery logistics widening catchment areas
  • 4.3 Market Restraints
    • 4.3.1 Higher interest-rate environment suppressing affordability
    • 4.3.2 Post-pandemic shortage of 0–4-yr lease returns
    • 4.3.3 Normalizing wholesale auction prices compressing margins
    • 4.3.4 State “Right-to-Repair” data rules raising re-conditioning costs
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter’s Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

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

  • 5.1 By Vendor Type
    • 5.1.1 Organized
    • 5.1.2 Unorganized
  • 5.2 By Fuel Type
    • 5.2.1 Gasoline
    • 5.2.2 Diesel
    • 5.2.3 Hybrid
    • 5.2.4 Battery-Electric
  • 5.3 By Body Type
    • 5.3.1 Hatchback
    • 5.3.2 Sedan
    • 5.3.3 SUV / MPV
    • 5.3.4 Pickup and Van
  • 5.4 By Sales Channel
    • 5.4.1 Offline
    • 5.4.2 Online
  • 5.5 By State
    • 5.5.1 California
    • 5.5.2 Texas
    • 5.5.3 Florida
    • 5.5.4 New York
    • 5.5.5 Illinois
    • 5.5.6 Pennsylvania
    • 5.5.7 Ohio
    • 5.5.8 Georgia
    • 5.5.9 North Carolina
    • 5.5.10 Washington
    • 5.5.11 Rest of United States

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 and Services, SWOT Analysis, and Recent Developments)
    • 6.4.1 CarMax Inc.
    • 6.4.2 Carvana Co.
    • 6.4.3 AutoNation Inc.
    • 6.4.4 Lithia Motors Inc.
    • 6.4.5 Sonic Automotive Inc.
    • 6.4.6 Penske Automotive Group
    • 6.4.7 Berkshire Hathaway Automotive
    • 6.4.8 Group 1 Automotive Inc.
    • 6.4.9 Asbury Automotive Group
    • 6.4.10 Hendrick Automotive Group
    • 6.4.11 CarBravo (General Motors)
    • 6.4.12 DriveTime Automotive Group
    • 6.4.13 Cox Automotive (Autotrader, KBB)
    • 6.4.14 TrueCar Inc.
    • 6.4.15 Cars.com Inc.
    • 6.4.16 ACV Auctions Inc.
    • 6.4.17 Manheim

7. Market Opportunities & Future Outlook

  • 7.1 White-Space & Unmet-Need Assessment
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

United States Used Car Market Report Scope

A used car is one that has previously been owned by one or more retail owners. It is also known as a pre-owned vehicle or a secondhand car. Used automobiles are sold in a variety of locations, including franchise and independent car dealers, rental car firms, buy here pay here dealerships, leasing offices, auctions, and private party sales.

United States Used Car Market has been segmented by vendor type, fuel type, body type, and sales channel.

United States Used Car Market has been segmented by vendor type, fuel type, body type, and sales channel. By Vendor type, the market is segmented into Organized and Unorganized. By Fuel Type, the market is segmented into Petrol, Diesel, and Others. By Body Type, the market is segmented into Hatchback, Sedan, and Sport Utility Vehicle and Multi-Purpose Vehicle. By Sales Channel, the market is segmented into Online and Offline. The report covers the market size and forecast in value (USD Billion) for all the above segments.

By Vendor Type Organized
Unorganized
By Fuel Type Gasoline
Diesel
Hybrid
Battery-Electric
By Body Type Hatchback
Sedan
SUV / MPV
Pickup and Van
By Sales Channel Offline
Online
By State California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Washington
Rest of United States
By Vendor Type
Organized
Unorganized
By Fuel Type
Gasoline
Diesel
Hybrid
Battery-Electric
By Body Type
Hatchback
Sedan
SUV / MPV
Pickup and Van
By Sales Channel
Offline
Online
By State
California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Washington
Rest of United States
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current size of the United States used car market?

The market generated USD 248.17 billion in revenue during 2024 and is forecast to reach USD 267.13 billion in 2025.

How fast is the United States used car market expected to grow?

The market is projected to expand at a 7.73% compound annual growth rate from 2025 to 2030.

Which vendor segment leads the United States used car market?

Organized dealer groups held 51.27% share in 2024 and benefit from certified programs, AI pricing, and national logistics networks.

What role do electric vehicles play in used-car sales?

Battery-electric cars form the fastest-growing fuel segment, posting a 7.78% CAGR through 2030, supported by the USD 4,000 federal tax credit.

Which state is growing the quickest within the United States used car market?

Texas is forecast to record a 7.34% CAGR between 2025 and 2030 on the back of strong population and job growth.

How are high interest rates affecting used-car purchases?

Elevated APRs that peaked at 14.73% in March 2025 reduced affordability for subprime borrowers, though expected Federal Reserve cuts should ease rates below 10% by late 2025.

United States Used Car Market Report Snapshots