How Many Used Cars Are Sold Each Year – Global and US Statistics (2022 Update)
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 than new ones. Over the past few years, sales of used cars 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 will tell you more about the number of used cars sold each year around the globe. This way, you’ll make informed decisions on buying or selling a pre-owned automobile.
2022 Global and 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.
In recent years, people have turned to buy used cars, which has seen a two-fold increment of sales of used cars compared to new ones.
One of the reasons people opt to buy used vehicles is the economy. In hard economic times like these, it’s best to have a car that lasts long and does not create a hole in your pocket.
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.
Nowadays, the used-car market is not only thriving, but it has exploded all over the world as millions of used cars are sold every year. Besides, the number of used vehicles sold today is far beyond what was expected.
These days, used cars are no longer perceived as inferior to new ones. On the contrary, they are viewed as a viable option of getting behind the wheel without spending too much.
3. The average cost of a used car in the US is $25,000.
In the US today, you can get a used car at an average price of $25,000. This price might vary depending on your location. For instance, you may pay more if you’re buying from a seller who lives in a more expensive area such as New York City or San Francisco.
Additionally, Trucks, SUVs, and luxury vehicles may 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.
A large number of used car dealerships in the US indicates that most citizens in the country buy used cars. There are many reasons to buy a used car from a dealership.
Some people would 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 more than happy to help find it for them.
5. The average age of a used car is 12.1 years.
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 for 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.
The used car market is a massive part of the automotive industry, and it’s always growing. The expected worth of the used car market should over $2,000 billion by 2027.
Consumers are opting for a used car over a new one because of the flexibility and affordability. This trend is not only affecting the United States but also the global market.
Used Car Buyers
7. Car buyers worldwide are three times more likely to buy used cars than new ones.
Used cars are more affordable and typically still hold their value well enough for resale. It makes them the less costly option that gets you back on the road right away. That’s why most car buyers prefer buying used cars.
Used cars also come with lower insurance premiums than new ones. It’s because they’re usually safer vehicles with fewer technological features that can fail.
8. SUVs are the most popular used car.
(ALLIED MARKET RESEARCH)
A report done in 2019 found that SUVs are the most sought-after used car on the market. Sedans and hatchbacks were the next two most popular used cars people wanted to buy. It is estimated that those numbers will continue to grow over the next five years.
9. There are four groups of people who benefit the most from buying a used car.
(CAR BUYER LABS)
Parents with many kids and teens would 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.
When most people consider buying a car, they picture themselves in a gleaming new model. But the truth is that most people buy used cars. Besides, most drivers prefer used cars.
There are several reasons for this. 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 all makes sense why any driver would rather go for a used car, especially when on a budget.
Frequently Asked Questions on Annual Used Car Sales
Why is the cost of used cars so high?
The answer is simple: supply and demand. When demand for a product is high, the price of that product rises. That’s what’s happening with used cars. People want them more than ever, so their prices are rising.
What is the average mileage of a used car?
It’s estimated that an average of 12,000 miles per year is driven in the United States by the average driver. So, if you are looking for a used vehicle, this could give you an idea of what kind of mileage to expect from it.
The mileage on a used car is never the same. It depends on how the previous owners were driving it and how they took care of it. If you are buying a used car, ask the seller how often they had to fuel and how many miles per gallon they got. The specific car model has a big factor in determining 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. But it’s crucial to know what you’re looking for when you go to the dealership, as there are many options available. One of them is lower cost. 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 for 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 money on insurance by buying a used vehicle because insurance costs decrease over time as a driver’s history grows longer 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 if you want something that can fit multiple passengers comfortably.
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 have more protection than used cars. They 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 a vehicle that’s almost like new without having to pay 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 previously owned by a consumer and 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 any price.
You can ask for maintenance records and also research on your own. But, this isn’t enough. A vehicle history report is critical to making sure that what you’re getting is worth your money. By checking the report, you can be sure of what you’re buying.
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 them easier to finance because they already have a relationship with the financing company.
But buying a used car on your own can be challenging because you must deal with the bank or the credit union directly. It means that you must go through a credit check and negotiate the price of the vehicle. This depends on the amount of money you can afford to pay monthly in car payments.
If you are doing this yourself, make sure you know everything about your credit and try looking up what percentage rate you qualify for.
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 three, six, 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 is different from the manufacturer’s warranty. 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.
Common Problems with Used Cars
If you’re shopping for a used car, it’s smart 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 these pieces to break down.
Also, they may be trouble with the transmission. The transmission sends power from the engine to the wheels. If the transmission is worn out, it can cause major 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, so even 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 on used cars. If you notice bald spots or uneven tread wear on your tires, they need to be replaced immediately.
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, make sure you have a reasonable budget. You might save some money by going for used car options. But even then, one should have a reasonable budget to get a satisfying model.
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 have some key statistics in mind outlined in this article. Good luck in your search for an affordable but good used car.
Featured Image Credit: Bromine, Pixabay
- 1 2022 Global and US Statistics on the Number of Used Cars Sold Each Year
- 2 Sale of Used Cars
- 3 Number of Car Dealerships, Age of Used Cars, and Growth
- 4 Used Car Buyers
- 5 Frequently Asked Questions on Annual Used Car Sales
- 5.1 Why is the cost of used cars so high?
- 5.2 What is the average mileage of a used car?
- 5.3 What are the benefits of buying a used car?
- 5.4 What is the difference between a used car and CPO?
- 5.5 Why is it crucial to know a used car’s history?
- 5.6 How do you apply for used car financing?
- 5.7 What is the minimum warranty on a used car?
- 6 Common Problems with Used Cars
- 7 Conclusion