The used car market has been expanding at lightning speed, especially over the past few decades. This trend is expected to keep going up in the coming years as more than two-thirds of car buyers opt for used cars over brand-new ones. But why does anyone buy a used car? For starters, this is a great way to get some hot wheels at ridiculously low prices. Secondly, the newer car models come out, the better their quality, reliability, and hence lifespan, making buying second-hand cars even more alluring.
Furthermore, to some extent, buying used cars is better for the environment. It reduces the carbon emissions involved in the manufacturing of new vehicles. So, on top of slashing your budget by substantial amounts when you buy a second-hand car, you’ll also be indirectly championing a safer environment. To understand why the market has been booming, let us consider some more factors that play a significant role in used-car trends.
The Biggest Used Car Markets and Popular Makes
When it comes to used car buyers, the make and location of the dealers play a vital role in what regions will import the most cars from what countries. Here’s a quick highlight:
- Africa
Japanese used vehicles are the best-selling in the world, and Africa has been their largest importer for decades. These include hatchbacks, SUVs, sedans, trucks, and so many more. As you might have guessed, the most popular would be the Toyota brand, for its affordable and reliable vehicles. The most popular model is the Hilux, which tops the market share in about 30 African countries, followed by the Corolla, which has been the continent’s heartthrob for most of its multiple remakes.
- Europe
While most of the world is busy importing cars from the Asia-Pacific region, Europeans are proud of their own brands, and that’s why German and French models top the list of the most purchased vehicles, whether used or new. In fact, during the Covid-19 pandemic, Europe’s second-hand car market grew by over 10% in 2020, according to a study by INDICATA. The UK market was the only one that saw a decline (-3.3%), probably due to the Brexit aftermath. Looking at car models, the Volkswagen Golf has been topping the list of the most popular used and new cars in Europe for some time. However, it has recently been overtaken by Peugeot 208 and 2008, which have taken the first and second spots, respectively.
- China
Generally, China is the largest importer of used cars globally, and organized car dealerships are opening up around the country and operating successfully. The number has grown so much that regulations have been introduced to restrict some of the imports. Used cars in China are imported from Europe and Japan. China has even started exporting used cars to other regions in the world. The most popular vehicle is currently the Volkswagen Lavida, with over 500,000 units sold in 2019 alone.
- Australia
This is another region that imports most of its ‘grey imports’ from Japan. Being in the Oceania region, the import/export process is speedy and convenient compared to if the cars were coming from Europe, for example. Aussies have the Toyota brand as a preferred brand over other used car imports, with Toyota Hilux, Toyota Rav4, and Corolla topping the popularity list. The number of preowned cars being imported just keeps going up each year.
E-commerce Platforms
The advent of the internet immensely enhanced how business is done through B2C or C2C e-commerce sites. For example, buyers can now analyze the information provided by the dealers to find out about a car from across continents or within the same city before buying it and arranging for transport to a specified location.
Import/Export Restrictions and Logistics
When purchasing a used car from another country, a buyer needs to consider the rules to follow. For example, some countries reject vehicle makes older than a certain number of years for roadworthy safety purposes. On the other hand, the logistics of how the car will get to the destination may be affected by factors beyond one’s control. An example is the case of the pandemic that caused a lot of delays in the arrival of goods and materials via transoceanic shipping, creating mayhem and an abrupt increase in prices.
Final Thoughts
Since the Covid-19 pandemic shook multiple economies, it is no surprise that the used car market was positively affected. Moreover, the car manufacturing industry was temporarily closed in most parts of the world, leading to the slow production of new vehicles. It can be compared to the gambling industry, with online gambling sites like GGbet taking over the land-based casino entertainment.
With citizens in developed countries receiving stimulus packages and no vacations in sight, most are looking to buy used cars as they are more budget-friendly. This has left a high demand for used cars and a low supply as the price of buying new cars has gone up. Moreover, poor economic times are pushing owners to hold on to their wheel for just a little longer as they can’t afford a new one yet, driving up used car prices.