United States Used Car Market Reach 51.4 Million Units by 2034

United States Used Car Overview:

The United States used car market is one of the largest and most active automotive segments globally. Used vehicles play a crucial role in providing affordable transportation options for millions of Americans. Unlike the new vehicle market, which is heavily influenced by manufacturing cycles and supply constraints, the used car market benefits from a vast inventory of vehicles entering resale channels every year.

Consumers turn to used vehicles for affordability, value retention, and wider model availability. Over the years, the market has evolved significantly, with certified pre-owned (CPO) programs, digital marketplaces, and online-only retailers reshaping the buying experience. Today, the used car market combines traditional dealership networks with rapidly growing online platforms, creating a dynamic and competitive landscape.

Download PDF Brochure of United States Used Car Market

Forecast Period and Future Growth

Looking ahead, the United States used car market is projected to grow steadily through 2030–2035, supported by:

• Continued affordability concerns among consumers
• Expansion of digital and direct-to-consumer sales channels
• Increasing supply of off-lease and trade-in vehicles

Growth in electric vehicle (EV) resale inventory

Forecasts suggest a moderate compound annual growth rate (CAGR) of 3–5% over the next decade. Unit sales are expected to gradually increase, potentially exceeding 50 million vehicles annually by 2034–2035 if supply conditions remain stable.

Online vs Offline Sales Share

The used car market remains predominantly offline, but online sales are expanding rapidly.

Offline Sales

Traditional dealerships account for approximately 65–70% of total used vehicle sales. Franchise and independent dealers remain the primary channel due to:

• Financing options
• Vehicle inspection and certification
• Trade-in services
• Physical inventory access

Online Sales

Online and digital transactions currently represent a smaller but growing portion of the market. Digital sales are estimated to account for 10–20% of transactions, depending on how online involvement is defined.

Online-only retailers and dealership-integrated e-commerce platforms are reshaping buyer expectations through:

• Home delivery options
• Transparent pricing
• Virtual vehicle tours
• Digital financing approvals

Volume Sales (Units Sold)

The U.S. used car market consistently records high transaction volumes:

• Approximately 36–40 million used vehicles sold annually
• Unit sales often triple new vehicle sales in total volume

These figures highlight the scale of the secondary automotive market and its importance to overall transportation accessibility in the country.

Future projections indicate gradual increases in annual sales volume, particularly as more lease returns and fleet vehicles enter the resale market.

EV Share in the Used Car Market

Electric vehicles (EVs) are gradually entering the used car segment but still represent a relatively small share of total used vehicle transactions.

Currently:

• Used EVs account for less than 2–3% of total used car sales
• Share is increasing as early-generation EVs reach resale age
• Used EV pricing has become more competitive due to technological advancements and battery improvements

As new EV adoption grows, the supply of used EVs will expand, potentially increasing their share significantly over the next 5–10 years.

United States Used Car Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States used car market, along with forecasts at the country and regional levels from 2026-2034. The market has been categorized based on vehicle type, vendor type, fuel type, and sales channel.

Analysis by Vehicle Type:

• Hatchbacks
• Sedan
• Sports Utility Vehicle
• Others

Analysis by Vendor Type:

• Organized
• Unorganized

The organized sector in the United States used car market is characterized by certified dealerships and online platforms offering structured buying processes, quality assurance, and post-sale services. Buyers trust organized players like CarMax and AutoNation for transparent pricing, vehicle inspections, and financing options.

Analysis by Fuel Type:

• Gasoline
• Diesel
• Others

Gasoline-powered cars are mainly preferred as they are available in more numbers, relatively cheaper for purchase, and most users are familiar with them. They are smoother to ride, reliable, and gasoline stations are very much within reach in all parts of the country.

Latest News and Developments:

July 17, 2024: TrueCar, Inc. launched TrueCar+, a platform enabling consumers to purchase over 3,200 new, used, and certified pre-owned vehicles entirely online. Offering transparent pricing, online financing, trade-in options, and home delivery, TrueCar+ simplifies car buying with a seamless, end-to-end process.

September 23, 2024: HGreg expanded its luxury pre-owned brand, HGreg Lux, with a USD 30 Million boutique in West Palm Beach, Florida, offering up to 150 vehicles, same-day delivery, cryptocurrency payments, and a five-day money-back guarantee.

Conclusion

The United States used car market remains a powerful and resilient segment within the automotive industry. With hundreds of billions of dollars in annual value and tens of millions of vehicles sold each year, it continues to provide essential mobility solutions nationwide.

Although traditional dealership networks still dominate sales, digital platforms are reshaping the customer experience. Meanwhile, rising EV inventory and shifting consumer preferences are gradually transforming the market structure.