The global used car market has grown significantly in recent years due to a price war and the advent of online channels. One of the factors driving used car sales is a middle-class population that has budget constraints, and recently, disruptions caused by COVID-19 have given a boost to demand for the used car market. The market initially experienced negative growth in 2020, but this has increased in 2021, owing to increased demand for personal mobility, a lack of funds, and a scarcity of new cars on the market.

Moreover, the global chip shortage began in 2020, when various governments imposed total lockdown, causing production and supply to be disrupted. A blizzard disrupted manufacturing in the United States, while a fire damaged a factory in Japan, affecting supply in both countries, which together account for 50 percent of the semiconductor chips used in autos worldwide. Furthermore, the development of the Delta version and later COVID-19 breakouts in Southeast Asia aggravated the semiconductor chip shortage, which had a severe influence on new car production, resulting in an increase in used car demand.

Rise in Prices: Demand for cars globally has plummeted. Weak demand for cars is in response to the rise in prices worldwide. Prices of cars have skyrocketed due to several reasons, ranging from COVID-19 to the Ukraine-Russia war. This has benefited the used car industry.

Emergence of Start-ups: With increasing demand for used cars, there has been an increase in the number of start-ups in this industry. The market for used cars has experienced exponential growth.

Consumers’ Preference Towards Used Cars: People nowadays have started giving importance to the cost of depreciation in new cars, which stands at 30% in the first year when the car is purchased. Owing to such high depreciation cost, buyers are shifting their preference toward used or second-hand cars and considering it a rational choice.

Second, governments in various countries have announced that the car ownership period will be reduced to around 4 years rather than more than 8 years. With the reduction in the car ownership period, buying a new car seems an expensive choice to a consumer, and therefore, demand is shifting towards used cars.
There has been a significant shift in consumers’ choice from new to used car due to rising female participation in the labor force, high RTO registration fees, and a need to own multiple personal cars by people residing in urban areas.

Further Key Findings
 Growing Urbanization: More than half of the world's population now lives in cities, with that number expected to increase to 68% by 2050.
 Belt and Road Initiative: The Chinese government has launched the Belt and Road Initiative (BRI) with the goal of improving global interconnection and communication.
 Rising Middle Class Population: Since 2016, the global middle class population has increased significantly, with Asian countries such as India and China playing a prominent role. Around half of the world's population is classified as middle class, with 5.85 million individuals in 2020.
 Rising Global Inflation Rate: Inflation has always been a source of anxiety for people all around the world. Global inflation is anticipated to be 7.4% in 2022.

Makreo Research has published a study on Used Car demand and supply, report titled “Global Used Car Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities” is a detailed study that offers the reader to understand the market from the prospect of economy, from the prospect of automotive demand, and also consumer behavior. The study embarks several macro economy factors and industry factors that have an influence over the used car market. The report discusses market revenue and forecast and also helps to understand the industry challenges and opportunities.
The report examines the global used car market in terms of various parameters such as the demand trend of new cars, availability of semiconductor chips, trade trends and many others. The report examine market of used car by car type (Hatchback, Sedan and SUV), by organized and unorganized channel, by online and offline demand, and by region. Demand assessment by region covers market performance in past, present and future.
Regions Assessed: North America, Europe, Asia-Pacific, Rest of the World
Company’s Mentioned: AutoNation, Inc, Lithia Motors, Inc., Maruti True Value, Group 1 Automotive, Inc., Cazoo, Ltd., CarGurus Inc., Cars24, CarTrade.com

Key Questions Answered
- How used car market is performing in the global market and what is the expected future growth?
- What is the share contribution of North America is global used car market?
- Which is the leading region in used car market globally and also the most promising country for future growth?
- Who are the key players in the global used car market?
- What is the market driving forces that are helping the industry growth and what are the key challenges ahead?
- Which is the dominant car type in the global used car market having maximum shares?
- What was the impact of COVID-19 over the used car demand in 2020 and what impact has it left over the future industry growth?
- What are the key variables responsible for Global used car pricing?

To know more about Makreo Research or to enquire about the publication, please refer to the link: https://www.makreo.com/report/global-used-car-market-future-outlook-to-2027-covid-19-impact-assessment-and-growth-opportunities


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