The report titled “The US Used Car Market Outlook 2016 – Driven by Late Model Used Cars” provides a comprehensive analysis of the various aspects such as market size of the used car market along with the overview of franchised used car dealers and independent used car dealers. The report also covers the market share of the leading players of the used car dealers in the US.
The used car market in the US is matured with a large retailer base and demanding consumers with major emphasis on the quality of the products they purchase. The used car industry of the US was valued at USD ~ million in 2011 which declined at a CAGR of 1.8% in the wake of the recession and the automotive industry crisis.
The used car sales declined considerably by 0.5%, 14.0% in 2007 and 2008 respectively and recorded sales revenue of USD ~ million and USD ~ million in 2007 and 2008 correspondingly. Additionally, the considerable rise in the gasoline and diesel prices over the years have certainly deterred to growth prospects of the used cars market in the US over the period. The general supply of vehicle segments was altered due to the rising fuel prices and the new average fuel economy ratings imposed by the US Government.
Automakers were focusing on their SUV. (Sports Utility Vehicle) and Pick-up truck segment greatly which had very poor fuel economy. The sales of these segments were worsened. The year 2009 saw the lowest unit sales of used cars at 35.5 million units.
The US used car industry has diverse product segments which have their own specific user base. The review period of 2007-2011 saw drastic shifts in the consumer preferences for used cars. The economy car was the largest segment in the used car industry which held 13.3% share in total sales and registered sales of ~ units in 2011.
It was found in 2011 that a used car buyer spends an average of 18 hours to take a purchase decision, out of which consumers spend almost ~% of their time on the internet. The time spent online includes third party site, dealer sites, OEM sites and general searching.
The unit sales of used cars equally dispersed among the various channels of franchised dealers, independent dealers and street sales. Around ~% of the sales were held by the franchised and independent dealers each and rest ~% market share was attributed to street sales. CarMax was the largest retailer of used cars in 2011 at ~ units sold along with revenue of USD ~million.
The total number of used car franchised dealers in the US declined from 21,495 franchised dealerships in 2006 to ~ franchised dealerships in 2012. This was as a result of the alliances in the industry during 2007 and the strategy of the car manufacturers to reduce the number of franchised dealers in the US on account of the lower sales volume of certain franchised dealers during the period.
In 2011, the total number of independent used car dealers that operated in the US was around ~ which have increased by 2.3% over ~ independent used car dealers in 2010.
The period 2006-2009 witnessed a massive decline in the number of independent used car dealers probably due to the incapability to sustain the weak market conditions and a surging demand and supply gap of used cars which finally forced several independent used car dealers to shut down their operations in the country.
The US car market is also characterized by a more developed car culture where there are multiple cars small households, as a result emotional factor also play a key role in the process of buying a used car. The used car market is expected to rise to USD ~ million in 2016 at a CAGR of 6.1 % while the used car unit sales will be growing at a CAGR of 7.3%.
Key Topics Covered in the Report:
- The market size of the Used Car in the US by revenue and unit sales.
- The market size of Late Model Used Cars by unit sales.
- Market segmentation of used cars in the US on the basis of car types.
- Trends and Development of the US Used Car market.
- Competitive landscape and a detailed company profile of the major dealers of used cars in the US.
- Dealership profiles of Franchised and Independent used car dealers.
- Future outlook and projections of used cars on the basis of revenue and sales volume.
For more information on the industry research report please refer to the below mentioned link: