How Many Used Cars Are Sold Each Year? 2024 Global & US Statistics
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Note: This article’s statistics come from third-party sources and do not represent the opinions of this website.
People have grown accustomed to buying new cars, but is a new car always the best option? How much depreciation do new cars incur? Do new cars ever get any cheaper to buy? As it turns out, buying a used car can be a far better value. Contrary to most people’s understanding, you can find reliable used vehicles for low prices.
More people today are choosing well-maintained used cars instead of new ones. Over the past few years, used car sales in various markets worldwide have become a lucrative business. It’s not surprising that used cars have as many fans as their new counterparts.
In this guide, we’ll analyze the number of used cars sold each year around the globe. That way, you’ll make informed decisions on buying or selling a pre-owned automobile.
Click below to jump ahead:
- Sale of Used Cars
- Number of Car Dealerships, Age of Used Cars, and Growth
- Used Car Buyers
- Frequently Asked Questions on Annual Used Car Sales
- Common Problems with Used Cars
The 10 Global & US Statistics on the Number of Used Cars Sold Each Year
- The sale of used cars has increased twice as much as new cars in the US.
- About 40 million used cars are sold every year around the world.
- The average cost of a used car in the US is $25,000.
- There are 136,811 used car dealerships in the US currently.
- The average age of a used car is 12.1 years.
- By 2027, the used car market is expected to be worth close to $2,120 billion.
- Car buyers worldwide are three times more likely to buy used cars than new ones.
- SUVs are the most popular used car.
- There are four groups of people who benefit the most from buying a used car.
- 74% of drivers worldwide say that their most recent car purchase is a used car.
Sale of Used Cars
1. The sale of used cars has increased twice as much as new cars in the US.
(POLICY ADVICE)
In recent years, people have turned to buying used cars, and there has been a two-fold increment in used car sales compared to new ones. One of the reasons people buy used vehicles is the economy. In hard economic times, having a car that lasts long and does not create a hole in your pocket is best.
Another reason for this trend is the quality of cars produced today. Whether we admit it or not, most new cars are made using cheap materials, and the engine life is not what it used to be. So, most people are turning to used cars.
2. About 40 million used cars are sold every year around the world.
(POLICY ADVICE)
Nowadays, the used-car market is thriving and has exploded worldwide as millions of used cars are sold yearly. Used cars are no longer perceived as inferior to new ones. On the contrary, they are viewed as a viable option for getting behind the wheel without spending too much.
3. The average cost of a used car in the US is $25,000.
(FORBES)
Today, you can get a used car at an average price of $25,000 in the US. However, the price varies depending on your location. For instance, you may pay more if you buy from a seller in a more expensive area, such as New York City or San Francisco.
Additionally, Trucks, SUVs, and luxury vehicles cost more. The cost of the used car also depends on the year it was manufactured, which directly influences its value. Usually, newer models are worth more than older models.
Number of Car Dealerships, Age of Used Cars, and Growth
4. There are 136,811 used car dealerships in the US currently.
(IBIS WORLD)
When you see that the United States has 136,811 used car dealerships, it’s apparent that most citizens buy used cars. There are many reasons to buy a used car from a dealership instead of a used car lot.
Some people prefer to work with professionals they can trust, while others want the security that comes with a warranty. Others know what they want, and a good dealership is happy to help them find it.
5. The average age of a used car is 12.1 years.
(USA TODAY)
The average age is the age at which most used cars are sold. Age is a crucial factor used to determine the value of a used car. Generally, if your car is valuable, you will want to keep it longer.
Age shows the quality of the cars built during different years and how consumers modify their vehicles. It can be affected by competition within the industry and environmental factors, such as gas prices.
6. By 2027, the used car market is expected to be worth close to $2,120 billion.
(GLOBAL NEWSWIRE)
The used car market is a massive part of the automotive industry, and it’s always growing. The expected value of the used car market should reach over $2,000 billion by 2027.
Consumers choose used cars over new ones because of their flexibility and affordability. This trend is affecting the United States and the global market.
Used Car Buyers
7. Car buyers worldwide are three times more likely to buy used cars than new ones.
(MOTOR TRADER)
Used cars are more affordable and typically still hold their value well enough for resale. It makes them the less costly option that immediately gets you back on the road. That’s why most car buyers prefer buying used cars. Used cars also come with lower insurance premiums than new ones.
8. SUVs are the most popular used car.
(ALLIED MARKET RESEARCH)
A report in 2019 found that SUVs are the most sought-after used cars on the market. Sedans and hatchbacks were the second and third most popular used cars people wanted to buy. Those numbers are estimated to continue to grow over the next 5 years.
9. There are four groups of people who benefit the most from buying a used car.
(CAR BUYER LABS)
Parents with several kids and teens benefit more from buying used cars. Teens have many expenses, and parents may not want to spend lots of money on a new car when there are other things they could use the money for. So, it may not make sense for them to buy brand-new cars.
10. 74% of drivers worldwide say that their most recent car purchase is a used car.
(MOTOR TRADER)
When most people consider buying a car, they picture themselves in a new model, but the truth is that most people buy used cars. New cars depreciate right from the moment you drive them off from the showroom.
Also, they lose more of their value at an increasing rate. The insurance is also much higher for new cars. Thus, it makes sense why any driver would buy a used car, especially when on a budget.
Frequently Asked Questions
Why is the cost of used cars so high?
The answer is supply and demand. When demand for a product is high, the price rises. That’s what’s happening with used cars. People want them more than ever, so their prices are rising.
(BUSINESS INSIDER)
What is the average mileage of a used car?
It’s estimated that the average driver drives an average of 12,000 miles per year in the United States. So, if you are looking for a used vehicle, this could give you an idea of what kind of mileage to expect. The mileage on a used car depends on how the previous owners drove it and how they took care of it.
If you are buying a used car, ask the seller how often they fill the tank and how many miles per gallon they get. The car’s brand and model affect how much you will spend on gas. So, make sure to consider that as well.
(FIND AND FUND MY CAR)
What are the benefits of buying a used car?
Buying a used car can be an excellent way to save money. Used cars don’t hold their value as well as new cars. Therefore, you can get them at a lower cost than buying a new one.
Used cars have a higher safety rating. With few exceptions, most used cars have been on the road longer. Also, they have had more time for recalls to be performed by manufacturers. And if you’re looking for a specific model that’s no longer in production, it might be easier to find a used one than a brand-new one.
Another benefit of buying used cars is that they depreciate much less than new cars. Also, you can save on insurance by buying a used vehicle because insurance costs decrease over time without accidents or incidents.
Buying a used car also gives you a lot more flexibility. You can buy one that suits your budget. Additionally, you have more options for features, such as whether you want four doors or something that can fit multiple passengers comfortably.
(CANADA DRIVES)
What is the difference between a used car and CPO?
A certified pre-owned (CPO) vehicle is a quality used car that has been reconditioned and inspected thoroughly by an authorized dealer before being sold.
CPO vehicles often come with manufacturer’s warranties. It can be reassuring if you are buying a car that has been driven by someone else. CPO vehicles are ideal for people who want to buy an almost new vehicle without paying for a brand-new one.
A used car has not been inspected or reconditioned before selling. Used cars are also known as pre-owned vehicles. Generally, a used car has been driven for a long period.
(HARTE SUPER CENTER)
Why is it crucial to know a used car’s history?
A comprehensive vehicle history report will provide more information about the car. To get the most value from your purchase, you’ll want to know the shape the car is in before agreeing to a price.
You can ask for maintenance records and also research on your own, but that isn’t enough. A vehicle history report is critical to making sure that what you’re getting is worth your money. You can be sure of what you’re buying by checking the report.
(MIKE DUMAN)
How do you apply for used car financing?
Applying for used car financing can be more challenging than applying for new car financing. However, dealerships make financing easier because they already have a relationship with the financing company.
Buying a used car on your own can be challenging because you must deal directly with the bank or credit union. It means that you must go through a credit check and negotiate the price of the vehicle. This depends on how much you can afford to pay monthly in car payments.
If you are doing this yourself, ensure you know everything about your credit and try looking up the percentage rate you qualify for.
(US NEWS)
What is the minimum warranty on a used car?
The warranty on a used car is only as good as the dealer that provided it. A warranty for a used car can be anywhere from 3, 6, or 12 months. Before you sign a contract, always ask about the length of the warranty and whether it covers repairs for ordinary wear and tear.
Make sure you get this in writing when you sign the contract. Also, remember that the minimum warranty on a used car differs from the manufacturer’s. The minimum warranty is what the dealer offers on a used car. It differs from one dealership to another.
Warranty periods for cars also vary depending on the car type. Each manufacturer has policies and practices when providing warranties for new and used vehicles.
(CAR BUYER)
Common Problems with Used Cars
If you’re shopping for a used car, it’s wise to be aware of common problems that come with owning an older vehicle. One of the most common issues is engine trouble. Engines have moving parts that must work together to keep them running smoothly. Over time, wear and tear can cause the pieces to break down.
Also, there may be issues with the transmission. The transmission sends power from the engine to the wheels. If the transmission is worn out, it can cause significant problems for a used car.
Rust is another major problem in a used car. Rusting on a vehicle’s frame can lead to structural damage and other costly repairs. Also, there are air conditioning problems. Older cars require more upkeep than newer vehicles, and air conditioning systems can go out on used cars. Air conditioning repairs are expensive, so this problem can get pricey if not fixed soon.
Some used cars also have noise and vibration issues. The noises that come from a vehicle as it ages can be annoying, but they may also indicate serious problems. Tires are an essential safety feature of a vehicle, and worn tires are a primary problem in used cars. If you notice bald spots or uneven tread wear on your tires, they must be replaced immediately.
Conclusion
Used cars are a crucial part of the global transportation market and present an attractive opportunity for automakers and other buyers. If you are looking for a used car, take your time and visit several dealerships before deciding. The number of used cars sold around the world is increasing. But before you start looking into buying a second-hand car, it helps to reference the statistics outlined in this article. Good luck in your search for an affordable, high-quality used car.
Featured Image Credit: Bromine, Pixabay
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