With massive changes in our lifestyle, a car is no longer a commodity representing luxury. Rather, this has become a medium to simplify day-to-day life. This, in the end, is resulting in a huge number of people buying cars all over the world.
This growth in car sales has simultaneously resulted in the sale of second-hand cars. The market is expected to grow at a rate of 7.3% between 2024 and 2033. Now the question is, why is that so? Well, in here, we will break down why and how the market is growing so much. This will help you in understanding how the used cars from China are competing with China’s new cars, and sometimes becoming people’s first choice.
Understanding the recent rise of second-hand cars in the global market
The global market for used second-hand cars has changed a whole lot in the last few years. Even until a few years back, buying used cards wasn’t a common choice among most people. However, recently, Chinese automotive suppliers and the ones from all parts of the world are experiencing a huge demand for used cars. The market size reached around 1,056 billion in 2024, and as discussed before, the growth is only expected to increase in the coming years. This means that with time, more and more people are gravitating towards buying used cars.
This growth is expected to be following an exponential rate in countries like India, China, Mexico, and even the United States. A major portion of the car owners from these countries are prone to replace their cars every three to five years. This means the cars that individuals are buying through American or Chinese automotive suppliers aren’t necessarily low in quality. Rather, they are barely used and still come with the functionality that they once had.
One of the most demanding cars in the second-hand market is the EV car. This is related to the growth of EV cars in the general automobile market. Other than that, it is the increase in consumer interest and consciousness that is highly driving the growth of EV cars in the second-hand car market.
Reasons behind the increasing demand
The sudden rise in the automobile second-hand market is driven by a few different factors. Some of the things that have been directly responsible for this growth are:
Increase in New Car Prices
The prices of China’s new cars or those from any other country aren’t sold at low prices. Rather, it is rising with each passing year as there is a constant advancement in the technology used and features. This automatically makes these cars less accessible and simultaneously increases the demand for used cars. These cars come with the added perk of advanced features and technology but at a much lower price.
Benefits Related to Depreciation
All new cars face a major hit of depreciation in the very first year. Its value decreases by around 20 to 30% and then continues to depreciate over the following years. This is why automobile owners who look for optimal value tend to choose used cars. These cars have already undergone depreciation before they were bought, so the following depreciation doesn’t make much difference. This makes it easy to experience great economic savings without making any sacrifices regarding the quality of the vehicle.
Better for the Environment
In recent times, there has been a shift in consumer behavior regarding environmental consciousness, and a similar change can also be noticed in the automobile industry. More and more people are choosing eco-friendly automobile options like EV cars for their quality to have less impact on the environment. Well, this has also resulted in the sales growth of used cars. These cars already exist in the market, which is why it lowers the need to produce new cars. This practice of reuse and recycling helps you to get the benefits of a brand-new car, all while lowering your carbon footprint.
Improved Vehicle Longevity
The recent improvement in the automobile industry has resulted in the production of cars that are much more durable than before. These cars last longer than before, which means buying them second-hand isn’t at all a bad choice. Given that one can easily buy these durable and high-mileage cars from Chinese automotive suppliers or dealerships, many individuals are gravitating more towards these cars.
Accessible Financial Option
A majority of automobile buyers tend to depend on different financial options, as buying a car can be a big expense. Well, in recent years, many banks and other financial institutions have chosen to offer more competitive loan rates for buying used cars. This means that by buying a pre-owned car, you also get to experience great options for car loans, thus making it easier for you to choose them over buying China new cars.
Conclusion
Buying used American or Chinese cars over China new cars is a choice that is both environmentally and economically smart. Through this blog, we worked on telling you how you can experience the same benefits at a much lower price simply by buying used cars. We hope that this motivates you to make a sound choice and helps you become a car owner without leaving a huge dent on your bank balance.
