The used car market in the US has grown exponentially in the early 2000s, but since 2007 the market in the country has witnessed a declining phase as a result of the contraction in the economy during the economic slowdown which encouraged the consumers to reduce their household allocated budget in automobiles and luxury items and rather adopt a purchasing behavior which is guided by necessity. The used market in the US has witnessed a gamut of activities following the contraction in the sales of the new cars and a global economic recession especially during the period 2007 – 2009. In the wake of the economic slowdown the US used car industry recorded revenue of USD 340 billion in 2006 and grew at a CAGR of less than 1% during 2006-2011. The late model used cars have emerged to be the most preferred choice for used car buyers as their sales alone comprised of around 41.0% of the overall sales volume of used cars in the US in 2011.
“Average prices of used cars, price of gasoline and diesel, improvement in the access to F&I services, increased sales of new cars which will ensure the availability of late model used cars, consumer confidence will drive the US used car market in the future.” According to the Research Analyst, Ken Research.
According to the research report “The US Used Car Market Outlook 2016 - Driven by Late Model Used Cars” by Ken Research, the US used car market revenue would grow at a significant CAGR rate thus reaching close to USD 480 billion by 2016 due to the major thrust from the high average prices of used cars. Used car sales and new car sales are complementary in nature, if the prices of one incline the other kind will also follow suit. Sales of new cars will determine the size of future used car inventory. Hybrid used vehicles will continue to gain market share and there will be greater efficiency in the market, in which the internet shall play a formidable role for both consumers and sellers.
The report provides a detailed overview on the sales, average prices, segments, online behavior of consumers and car dealers in the used car market of the US. This report helps the reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, auto-dealers, F&I firms, retailers and other stakeholders to align their market centric strategies according to ongoing and expected trends in years to come.
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