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.