North America Used Cars Market Size - By Vehicle (Hatchback, Sedan, SUV), By Fuel (Gasoline, Diesel, Hybrid, Electric), By Sales Channel, By End-use (Personal, Commercial) & Forecast, 2024 - 2032

North America Used Cars Market Size

North America Used Cars Market size was valued at USD 457.9 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The increasing affordability of used electric vehicles (EVs) is a unique growth driver for the market. With the rapid advancement in battery technology and the growing availability of charging infrastructure, more consumers are considering EVs as viable alternatives to traditional gasoline-powered vehicles. According to the U.S. Department of Transportation, the public electric vehicle (EV) charging infrastructure has grown significantly during the current administration.
 

The number of publicly accessible EV charging ports has increased twofold, reaching over 192,000. This expansion continues at a rapid pace, with about 1,000 new public charging stations being installed weekly across the country. The market is seeing an influx of used EVs as early adopters upgrade to newer models, providing cost-conscious consumers with more affordable options. Additionally, government incentives for electric vehicles and rising environmental awareness are encouraging consumers to consider used EVs, further boosting the demand and driving growth in the used car market.
 

Moreover, the rise of online car retail platforms significantly drives the North American used cars market. Companies such as Carvana, Vroom, and Shift Technologies have revolutionized the car-buying experience by offering virtual showrooms, detailed vehicle history reports, and hassle-free delivery services. This digital transformation has attracted tech-savvy consumers, providing them with a convenient and transparent way to purchase used cars from the comfort of their homes.
 

For instance, in August 2023, Stellantis broadened the reach of its pre-owned vehicle platform, Spoticar, by introducing it to dealerships across the U.S. This expansion into the U.S. market is a strategic move aligned with Stellantis' long-term "Dare Forward 2030" plan.
 

The introduction of Spoticar to American dealerships is expected to boost the company's used car sales and transactions, supporting its broader corporate objectives for the coming years. With the ongoing development of AI-powered tools that assist buyers in selecting vehicles and negotiating prices, these platforms are enhancing customer satisfaction and trust, thus fueling the growth of the used car market.
 

The concern over the transparency of vehicle history reports is hindering North American used cars market growth. Many buyers are wary of hidden issues such as previous accidents, flood damage, or odometer tampering that might not be accurately reported. Despite improvements in vehicle history reporting services, inconsistencies and gaps in data can still occur, causing potential buyers to hesitate. This lack of trust can lead to a slower sales cycle and may compel consumers to opt for new vehicles instead, limiting the growth of the used car market.
 

North America Used Cars Market Trends

The increasing focus on sustainability and eco-friendly practices is providing significant market opportunities for the used cars industry. Dealerships and online platforms are emphasizing the availability of used electric and hybrid vehicles, aligning with the growing consumer demand for sustainable transportation options. Moreover, companies are adopting greener practices, such as offering digital documentation and paperless transactions, which appeal to environmentally conscious buyers.
 

For instance, in July 2024, online used car retailer Carvana introduced new features to enhance the experience of purchasing electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on its platform. These updates simplify the search and buying process for eco-friendly vehicles. A key improvement is the integration of Clean Vehicle Tax Credit information into the search results, clearly identifying which vehicles are eligible.
 

Furthermore, Carvana now enables qualified buyers to immediately apply up to USD 4,000 in tax credit savings during the checkout process, making these vehicles more financially accessible to customers. This trend is not only enhancing the marketability of used vehicles but also attracting a new demographic of buyers who prioritize environmental responsibility, thereby positively impacting the growth of the used car market in North America.
 

The integration of advanced artificial intelligence (AI) technologies for personalized customer experiences is propelling the market growth of used cars. Dealerships and online platforms are leveraging AI-driven tools to analyze consumer preferences, browsing behavior, and purchasing patterns to offer tailored recommendations. Virtual reality (VR) and augmented reality (AR) technologies are further being implemented to provide immersive virtual car tours, enhancing the customer’s buying experience. This technological integration is streamlining the decision-making process for consumers, reducing purchase times, and increasing customer satisfaction, thereby driving growth in the market across North America.
 

North America Used Cars Market Analysis

Based on the vehicle, the market is divided into hatchback, sedan, SUV, and others. In 2023, the SUV segment accounted for a market share of over 41%. This segment's dominance in the North American used cars market is driven by a growing consumer preference for vehicles that offer spacious interiors, higher seating positions, and versatile functionality.
 

SUVs are perceived as safer due to their larger size and robust build, making them popular choices among families and outdoor enthusiasts. Additionally, advancements in fuel efficiency for SUVs have mitigated concerns over higher fuel consumption, further boosting their appeal. The availability of certified pre-owned SUVs with extended warranties and attractive financing options further makes them an appealing choice, contributing to the strong demand and market share of SUVs in the used cars segment.
 

Based on fuel, the used cars market is categorized into gasoline, diesel, electric, hybrid, and others.  In 2023, the gasoline segment accounted for a market share of over 51%. This segment holds a major market share, primarily due to the widespread infrastructure supporting gasoline-powered vehicles. Gasoline vehicles are often more affordable upfront compared to their electric counterparts, making them attractive options for cost-conscious buyers.
 

Additionally, advancements in engine technology have improved fuel efficiency and reduced emissions, making gasoline vehicles more environmentally friendly. The extensive network of gas stations provides convenience, ensuring that consumers have easy access to refueling. These factors, combined with the familiarity and reliability associated with gasoline vehicles, continue to drive their popularity in the market.
 

U.S. dominated the North America used cars market with around 95% of the revenue share in 2023, driven by a large and diverse population with varying transportation needs. Economic factors, such as high depreciation rates of new vehicles and rising new car prices, make used cars a more affordable and attractive option for consumers.
 

The increasing availability of certified pre-owned programs offered by manufacturers provides added assurance to buyers, boosting confidence in the used car market. Additionally, the growth of online platforms and digital marketplaces has made it easier for consumers to access a wide range of used vehicles, further fueling market growth.
 

North America Used Cars Market Share

CarMax and AutoNation dominate the market with over 5% of the China used cars industry share in 2023. CarMax, Inc. maintains its competitive edge in the used cars industry through its expansive network of stores and robust online presence, offering a seamless, omnichannel buying experience.
 

The company emphasizes customer trust and transparency by providing detailed vehicle history reports, rigorous inspection processes, and a no-haggle pricing policy. CarMax's focus on customer satisfaction is further enhanced by offering various financing options and extended service plans. Its technological investments in online sales and digital tools ensure CarMax remains a leader in the used car industry.
 

AutoNation, Inc. stays competitive in the North American used cars market by leveraging its extensive dealership network and strong brand reputation. The company offers a diverse inventory of certified pre-owned vehicles, emphasizing quality and reliability through comprehensive inspection and certification processes. AutoNation's customer-centric approach includes transparent pricing, flexible financing solutions, and extended warranty options. Additionally, AutoNation has embraced digital transformation with its AutoNation Express platform, enabling customers to shop, purchase, and schedule vehicle deliveries online, catering to the growing demand for convenient, digital car-buying experiences.
 

North America Used Cars Market Companies

Major players operating in the North America used cars industry are:

• Asbury Automotive Group, Inc.
• AutoNation, Inc.
• CarMax, Inc.
• Carvana Co.
• Group 1 Automotive, Inc.
• Lithia Motors, Inc.
• Penske Automotive Group, Inc.
• Sonic Automotive, Inc.
• Vroom, Inc.
   

North America Used Cars Industry News

• In July 2024, TrueCar, Inc. announced the launch of TrueCar+. This enhanced platform now enables consumers to complete the entire purchasing process online for over 3,200 new, used, and certified pre-owned vehicles. TrueCar+ represents a significant step forward in the company’s mission to simplify the car buying experience, eliminating traditional complexities and uncertainties, and offering a more transparent and seamless journey from vehicle search to final online purchase.
   
• In October 2023, TrueCar announced a new partnership with Car and Driver. This collaboration allows TrueCar to expand its reach and offer an enhanced car shopping experience to a larger audience. Additionally, the partnership provides TrueCar dealers with increased visibility for their inventory, helping them connect with more potential buyers.
   

The North America used cars market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipment (Units) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Vehicle

• Hatchback
• Sedan
• SUV
• Others

Market, By Fuel           

• Gasoline
• Diesel
• Hybrid
• Electric
• Others

Market, By Sales Channel

• Peer-to-peer
• Franchised dealers
• Independent dealers

Market, By End-Use

• Personal
• Commercial

The above information is provided for the following regions and countries:

• U.S 
  • California
  • Texas
  • Florida
  • New York
  • Illinois
  • Pennsylvania
  • Georgia
  • Ohio
  • New Jersey
  • North Carolina
  • Rest of U.S. 
• Canada 
  • Ontario
  • Quebec
  • British Columbia
  • Alberta
  • Manitoba
  • Rest of Canada