Worldwide used car sales are poised to grow at an overall compound annual growth rate of 5.5% over the next seven years, pushing the U.S market past $2,150 billion over that same time.
The new Grand View Research report details how market growth is expected to continue, bolstered by technological advancements such as the implementation of digital invention and the use of artificial intelligence to improve the online buying experience.
With offline dealerships expected to remain under growing pressure stemming from the lingering impact of COVID-19, digitally generated leads are expected to continue to be seen as the way to make up the difference.
Across the globe, the growth of online sales platforms have also changed overall consumption of the used cars, with digital sellers like Vroom, Carvana Inc., eBay Motors and Shift Technologies Inc. all becoming more common by the day.
Growing investment in the SUV market is also fueling some of the traction in the market, and many luxury brands are taking notice by investing in launching vehicles in the SUV segment to add to their existing sports collection inventory.
Finally, the coronavirus crisis is likewise expected to increase the demand for compact and mid-size vehicles at affordable prices, as more and more people move to invest in private transportation as a way of safeguarding themselves from the spread of the virus. This is one of the key driving factors for used car sales, as many consumers take to the business of searching out more affordable and protected means of transport.
In addition, the dynamics of an uncertain economy and job market, again largely brought on by the pandemic, are largely accounting for individuals’ preference of used cars over new ones.
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