Used Car Dealers Industry Profile

Companies in this industry sell a variety of used vehicles including passenger cars, light trucks, SUVs, and passenger and cargo vans. Major companies include CarMax, Car-Mart, and DriveTime (all based in the US), as well as Cargiant (the UK), Nextage (Japan), and Porr Equipment Services (Austria).

Leading countries for used car sales are China, the US, Japan, India, Germany, and Brazil, according to F&I Tools. There were more than 35 million used vehicles sold in 2023, according to Automotive Remarketing.

The US used car dealer industry includes about 25,000 dealers with combined annual revenue of about $100 billion. Auction houses and wholesalers that buy and sell used vehicles are not included in this industry. Dealers that sell both new and used vehicles are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by consumer spending and interest rates. The profitability of individual companies depends on high inventory turnover, exceptional customer service, and effective marketing. Large companies provide a wider variety of vehicles. Small companies can offer a boutique car-buying experience and provide more individualized customer service. The US industry is fragmented: the top 50 companies account for about 30% of revenue.

Used car dealers compete with the used car divisions of new car dealers and with private sellers. Dealers that offer repair and maintenance services compete with a variety of independent shops and chain outlets.

PRODUCTS, OPERATIONS & TECHNOLOGY

Sales of used passenger cars (more than ...