The past few years have witnessed a tremendous growth in the market for used and refurbished cars. Dealers in this segment are smiling to the bank with the immense profit they’re making. Analytic trends show there’s a steady increase in growth. Would there be changes in the trend within the next seven years?
Growth opportunities with used and refurbished cars
There’s a paradigm shift in the demand for new cars, people are gradually tending towards buying used or refurbished cars. There are many positive reasons for doing that.
Given that ownership of vehicles has reduced from five to three years, more used and refurbished cars are now in circulation.
There’s also a wave of digitization sweeping through the automobile industry. Many used car dealers now have an online presence to service customers remotely. All useful history and information regarding any used or refurbished car can now be authenticated online, everyone can make free vin check online
The growth in the market for used, refurbished cars is also fueled by price. Used cars are evidently more affordable. Besides, insurance and registration cost for used cars is reasonably less.
The market for used cars now has numerous growth opportunities now than ever before.
In the United States, the used car market has maintained a bullish run in the past six years. The growth rate Is pegged at six percent.
Market Analysis 2018-2025
The used car market is buzzing with growth and potential. With the increasing number of new model cars being launched, the market analysis shows there’ll be an increased number of used cars in the market between now and 2025.
Another determinant factors for improvement, based on the market analysis, is the increase in average income in places like the United States. This has increased citizens purchasing power for cars and decreased car ownership cycle.
Trends & Forecast
The automobile industry is saturated with various multinationals and retailers. While the multinationals produce and reel out motor vehicles, it’s the job of retailers to deal on either new or used vehicles. According to trend, dealers of used and refurbished cars are making almost as much profit as dealers of new vehicles in 2018.
The market for used cars is soaring as the years go by. Analysis show since 2016 that the used and refurbished car market is demonstrating a significant growth in value. In the U.K., the trend shows that the used car market contributed 51% of sales in 2017.
The trend also shows between 2018 and 2025 there would be a marked increase in the price of used cars. In the first quarter of 2016, the price of some used or refurbished luxury cars stood at $18,000 in the US. It now stands at $20,000.
It is forecasted by analysts that used cars will attract more purchase in the next seven years. There would be a sharp increase in sales. Used car stocks such as Penske Automotive, CarMax, and AutoNation are likely to rise reasonably.
Since hitting a rough patch in 2009, the used and refurbished car market is showing a steady increase. There’re no signs it’ll slow down between 2018-2025.