The used car market is growing continuously. It is estimated that the market is expected to grow at 5.5% (CAGR), compounded annual growth rate from 2020 to 27. The global used car market valuation was around USD 1332 billion in 2019. The market is growing continuously because of the price competitiveness amongst players is ongoing. Consumers’ inability to pay for the prices has led to increase in the volumes. Majorly the growth is complemented by the investment made by the dealers to increase the network of their dealership across their own country and technological advancement.
Dealership networking has led to the easy access of the use cars to consumers. Along with it, the internet i.e. online sales have also helped in gaining these dealers popularity. A person for example wants to search for used cars in fresno, California will be bombarded with dealers, websites and all pre owned cars related information related to that particular region on the web.
Online sales along with dealership networking have resulted in upsurge in the used car markets. The consumer is has become knowledgeable regarding quality of finance, residual value, profit margin, cost, availability in making the deal and hence changed the preference of consumer from buying a brand new car to a pre owned car. Other factor that could have led to upsurge would be transparent and common pricing, online sales, certified used vehicles programs .There are different outlets in one which can sell used cars, i.e. franchise, companies or by Private sellers etc. Other then dealers there are also certified pre owned cars available in the market; it is a used car option with warranty coverage. This option has cars which are low on mileage and are used for few years only. These cars are mostly the cars returned at the end of the lease. These cars pass through strict guidelines of the manufacturer. This option has many perks attached to it.
The expansion of dealer network has made the purchase easy. The dealers claim to handpick their inventory, also claims that vehicles have clear history and mostly have vehicles with one retail owners. They Have packages for the customers which can be trimmed and custom made. These dealers have in house finance expert to help the buyers with the financing options of the cars. They have stringent quality standards through which cars go through before coming for reselling in the market. They claim to provide competitive and transparent price for the product and provide best deal. These dealers provide hassle free, high quality pre owned cars to customers. The dealers are determined to create a whole customer experiences for the consumers. The dealers have made buying second hand car purchase as buying a new car.
These networks are building on word of mouth and reviews to attract more customers towards there dealership stores. A lot of process of selecting, identifying comparing the vehicle has moved online. A person can check all the necessary research before even visiting the stores. Hence it saves time, money and energy for the users.