Used Car Market Size and Forecast till 2031 (2023)

FAQs

What will the used car market be in 2030? ›

The global used car market is expected to grow at a compound annual growth rate of 6.1% from 2022 to 2030 to reach USD 2.67 trillion by 2030.

US Used Car Market Analysis

United States Used Car Market was valued at USD 195.84 billion in 2021, and it is projected to reach USD 302.47 billion by 2027, registering a CAGR of 7.51% over the forecast period. The outbreak of the COVID-19 pandemic has caused significant disruption in the automotive industry.

Manheim, which auctions used cars to dealers, reported a 4.3% increase in vehicle prices in February, the largest increase for that month since 2009. Another tracker of wholesale used-car prices, Black Book, said prices rose 0.46% for the week ended March 11, the largest single-week increase since November 2021.

Prices could drop up 5% for new vehicles and 10% to 20% for used vehicles in 2023, according to a report in November from J.P. Morgan. The basis for the prediction is that demand has stabilized and vehicle inventory is improving.

Farmington, March 22, 2023 (GLOBE NEWSWIRE) -- The Global Automotive Market Is Expected To Grow From USD 23 Billion In 2022 To USD 28.7 Billion By 2030, at a CAGR Of 4.5%.

Used-Car Prices Will Drop: Here's How to Prepare. As new-car inventory begins to stabilize, J.D. Power forecasts that used-vehicle values will begin their descent to more normal levels by late 2022 and into 2023. “We do expect used prices to cool once new-vehicle production and inventories begin to recover,” Paris said ...

The market size, measured by revenue, of the Car & Automobile Manufacturing industry is $104.1bn in 2023.

The car market is seeing a slow downward trickle in prices, but they largely remain higher than pre-pandemic levels.

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

Federal statistics continue to show a slight decline in used car prices, but experts warn that prices will likely stay high.

Will auto prices go down in 2023? ›

Those average transactions were down slightly from a month earlier. “The transaction data from February indicates that prices continue a downward trend at the beginning of 2023,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive.

Conclusion: Is 2023 a Good Time To Buy a Car? Considering vehicle prices are still inflated and loan rates may be on the rise, it's not the best time to buy a car. However, auto prices may continue to level off during the rest of the year, which would be a good sign for car buyers.

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

Cost to finance to remain high in the coming year

The concurrent increase of rates and decrease in vehicle prices will likely remain consistent through 2023. Rates are expected to continue to increase, explains McBride, “An active Fed will mean further increases in auto loan rates.”

By 2025, 25% of cars sold will have electric engines, up from 5% today. But most of those will be hybrids, and 95% of cars will still rely on fossil fuels for at least part of their power. That means automakers will need to make internal combustion engines more efficient to comply with new standards.

Why Are Car Prices Rising? Car prices rose dramatically in 2022 as a result of global supply chain issues, with a persistent chip shortage holding up production in the auto industry. While semiconductor supply is expected to improve in 2023, new car prices will likely remain elevated due to inflationary input costs.

Toyota Motor Sales

Toyota announced its latest electrification goalposts in December 2021, promising to build 3.5 million battery-only electric vehicles per year, worldwide, by 2030, backed by $70 billion in investments.

Yesterday's new cars are today's used cars ...

Fewer new cars sent new prices up. That, in turn, pushed many shoppers into the used-car market. And more shoppers in the used market pushed prices up there, too.

A global pandemic, ensuing parts shortages, and even the war in Ukraine sent automotive supply chains into chaos, leading to severely decreased inventories of new cars for purchase. This has concurrently led to lack of supply and higher prices for new cars, which have remained elevated and are still climbing.

“The used car bubble seems to have burst since the second quarter of 2022,” it said. “New cars have been slowly becoming more widely available, as supply chain bottlenecks finally start to ease.”

Will the used car market go down in 2023? ›

Used car prices expected to start dropping in 2023, but not how consumers may expect.

Used Car Prices Will Fall in 2023, but Older Cars Will See the Biggest Declines. After reaching absurd highs in early 2022, used vehicle prices have already fallen. They'll continue to ease in 2023, just not by as much as consumers would hope.

Sales of new internal combustion engine (ICE) automobiles are halted in 2035 in the Net Zero Emissions by 2050 Scenario (NZE Scenario). In parallel, the share of EVs in total sales needs to reach around 60% by 2030 to stay the course and reach net zero CO₂ in 2050.

The revenue of United States motor vehicle and parts dealers was $1.53 trillion as of 2021. The auto industry accounts for 3% of America's GDP.

According to industry analysts from Cox Automotive and J.D. Power, some automotive market conditions are likely to improve in 2023, but perhaps not enough to trigger radical change. "We certainly do expect the market to get better than it's been," says Tyson Jominy, vice president of data and analytics at J.D. Power.

Our analysts tell us that new car shoppers are better off waiting for more price drops and discounts to kick in during the second half of 2023. Used car shoppers, however, might want to move quickly while prices remain lower.

The Interest Rate Likely Won't Go Down any Time Soon

However, the Federal Reserve has indicated that there are still five more interest rate increases to come in 2022. That means consumers should expect more increases in their own interest rates, auto loans included.

There is good news on the horizon in 2023, however. J.P. Morgan estimates that prices for both new and used vehicles are set to decrease as supply chain issues abate and inflation is poised to keep easing.

By 2040, the state projects that nearly 32,000 auto mechanics jobs will be lost in California, since electric vehicles need far less maintenance and repair than conventional combustion engines.

Toyota and GM said they expect U.S. auto sales to increase to about 15 million vehicles this year. That would be a roughly 9% increase over 2022. S&P Global Mobility and Edmunds expect 2023 new U.S. vehicle sales to be 14.8 million, while Cox Automotive's preliminary forecast is 14.1 million.

What country is going all electric cars by 2030? ›

The Netherlands, a country that has also signed the declaration, has previously announced a ban on gas and diesel cars by 2030. These goals are more ambitious and actually reflect a more realistic timeline of the shift in consumer demand for electric vehicles.

The rule establishes a year-by-year roadmap so that by 2035 100% of new cars and light trucks sold in California will be zero-emission vehicles, including plug-in hybrid electric vehicles. The regulation realizes and codifies the light-duty vehicle goals set out in Governor Newsom's Executive Order N-79-20.

Data Bridge Market Research analyses that the global used car market was valued at USD 996,906.42 million in 2022 and is expected to reach the value of USD 1700,106.13 million by 2030, at a CAGR of 6.90% during the forecast period.

Car prices surged during the pandemic, and despite coming down from their peak, they still remain higher than a few years ago. It has been nearly three years since auto plants around the world started to shut down because of the pandemic.

World Car Group Ranking in 2023 is dominated by Toyota which maintains a substantial distance from the runner up Volkswagen. Hyundai-Kia overtakes the Renault Nissan Alliance in YTD sales.