Market Trends of US Used Car Industry
TECHNOLOGICAL ADVANCEMENT IN THE ONLINE MODE SEGEMENT IS EXPECTED TO FOSTER THE DEMAND OF TARGET MARKET
Technology advancements, such as the expansion of the online mode for booking and the use of e-commerce sites/applications, are predicted to expand the target market. Furthermore, the role of online sales has emerged as a crucial growth component in the industry. Online sites in vehicle marketplaces have played a critical role in providing consumers with access with a single click.
Consumers are getting more aware of the vehicle, its residual value, third-party margin, and other factors due to internet booking. A confluence of such trends resulted in a huge increase in demand for used cars. Furthermore, factors such as affordability, the availability of secondhand automobiles, the increased need for personal mobility, and the rise of multiple internet companies to organize the market have led to the growth of the market growth. Although, several leading companies have opened online and offline stores throughout the country to provide smoothly used car purchasing experiences.For instance,
- In January 2022, CarBravo, a new way to shop for used autos, was launched by General Motors. CarBravo will improve the shopping, buying, and ownership experience for used-vehicle customers by providing them with a large inventory, an omnichannel shopping experience, and exclusive ownership perks.
- In September 2021, AutoNation, Inc., one of the largest America's automotive retailer, announced the opening of AutoNation USA Denver 104, the second of five more pre-owned vehicle stores that the business will establish this year. By the end of 2026, AutoNation expects to have over 130 AutoNation USA locations open from coast to coast. To gain a larger portion of the used vehicle market, AutoNation USA stores will continue to leverage the AutoNation brand, scalability, and proven Customer-centric procedures.
UNORGANISED VENDOR TYPE SEGMENT IS EXPECTED TO HOLD SIGNIFICANT MARKET SHARE
Buying a used car is a terrific method for a middle-class or learner driver to get a good vehicle for a low price and eventually go on the road without spending a bunch. There is no shortage of used vehicles for sale, so selecting the correct one might be difficult.
The used car market is dominated by unorganized and semi-organized dealers, with unorganized dealers accounting for the majority of independent dealers in the country. Participants place a high value on newer vehicles and popular brands with high resale value. The automobile market in the United States is seeing yet another significant transition as prices continue to fall from all-time highs due to the pandemic.
The emergence of new market competitors and new retail methods has also emerged as a crucial element in driving market expansion. According to the National Automobile Dealers Association, franchised dealers generated higher gross earnings on used vehicle sales than independent dealers in the United States. Furthermore, organized merchants profited from increased brand loyalty across all age groups.
- In March 2022, TrueCar, Inc., the most convenient, efficient, and transparent online destination for buying and selling new and used vehicles, today announced the launch of its Sell Your Car offering and the introduction of its Home Delivery programme in Texas. TrueCar's Home Delivery initiative, which is now being tested in Texas, would allow any dealership to significantly increase the market reach of their used car inventory within their region or even nationally. Furthermore, clients benefit from a larger used car range and the ease of home delivery. TrueCar intends to expand its service to additional markets in the second quarter.
