The used car sales in USA is projected account for a revenue of $1.3 Bn with owing to advanced technology in automobiles and resolvent of chip issue in the industry: Ken Research.
Continuous Product Innovation and New Business Models: New business models such as "Value for Many" will redefine future business propositions and product development. The "make one, sell many" concept implies producing and selling the same product or service to the masses in developing countries or leveraging the market globally.
Digital Transformation: Larger number of independent and multi-brand dealers are expected to shift towards online platforms and increase their digital presence. Use of advanced technologies such as AI to valuate cars online, 360-degree view of the interiors of the car and more to enhance digital experience of consumers will drive the market. Social media will play a major role in generating leads for dealers & end consumers by virtue of offering advertisements at a lower cost with respect to other traditional marketing channels.
Trends and Recent Developments: The development of technology and internet have provided all the information to the consumers regarding vehicle value, market prices, profit margin of seller, quality and condition of the car and more where service providers in used cars market are adopting technologies in their business operations. Recent technological trends in the automotive sector include AI, Biometric Seat Capabilities, Biometric Seat Capabilities, 3D printing in car manufacturing, Internet of Things, Automatic Lift Gate and Electric Vehicles.
Market Potential: The semiconductor chip shortage in USA has led to diminishing growth in the new vehicle inventory, which is increasing the demand for used vehicles in the market. This trend is expected to further continue in the near future for at least a span of 2+ years, until the chip shortage is solved.
Analysts at Ken Research in their latest publication "USA Used Car Market Outlook to 2026F– Driven by an influx of digital players along with consumer demand for personal mobility and affordable pricing" by Ken Research observed that Used Car Market in USA is growing at a robust CAGR more than 40k Used cars being sold as a result of increased market supply along with a shift towards organized and transparent trade. The availability of financing options, online presence of new emergent players and increasing digital penetration is expected to contribute to the market growth over the forecast period. The USA Used Car Market is expected to grow at a CAGR of 7.4% in revenue terms over the forecasted period 2021-2026F.
Consumer shift from public transport to personal vehicle will lead to rising demand of used cars.
Increasing awareness about buying and selling used cars through advertisements and entry of new players will provide a major boost to used car market growth.
Easy availability of credit for financing pre-owned cars along with attractive interest rates and user-friendly buyer experience is to boost sales in future.