Rising Demand Of Used Cars Among Consumers In UK Used Car Market Is Expected To Generate ~GBP 273 Bn By 2026F: Ken Research

UK Used Car Market Ecosystem

The UK used car market is consolidated with few major players (both organized and unorganized) operating in the industry. Majority of the used cars are sourced from organized sector with more than half the total share of used cars sold. Direct buying from consumers or individual sellers is another major source. Arnold Clark is the dominant player in Offline Used Car market in UK.

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Key Findings

  • The share of organized sector is more than unorganized sector in UK used car market due to higher preference and trust on organized players in the market.
  • People in UK prefer cars that are around five years old as they are less likely to need expensive replacements at this age.
  • With the rise in preference for online retailing, the online segment is expected to witness significant growth, however, a large number of customers prefer offline stores while purchasing used vehicles to ensure and check the vehicle physically. Therefore, the offline segment of the market is anticipated to dominate the market during the forecast period.
  • South East England is the dominating region in UK for used cars sales as of 2021 followed by North West and the West Midlands.

Increase in demand for Used Cars: There is a significant growth in the used car sales during forecast period majorly due to expected increase in hybrid and electric vehicle car sales in coming years which is anticipated to grow at ~15% CAGR by 2026F. The conventional used cars have also maintained its dominance however, its overall growth during 2021- 2026F is slower as compared to electric vehicles. As a result, several OEMs are focusing on developing EVs rather than conventional vehicle due to surging demand for more affordable vehicle in the country.

Focus on Expanding Digital Presence: Most consumers these days make used car buying decision after searching online which necessitates synchronizing online and showroom experiences and sharing product information, offering sales support & servicing online. Online platforms can introduce an additional service wherein consumers can go through all the used car auctions taking place around them or that are scheduled for the future. At present, there is not much used car content on Tik-Tok and Snapchat. These platforms are suitable for targeting new customers and will help to increase business opportunities for used car operators.

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Partnerships and Collaborations for future growth: Brand authorized/direct dealership agents as well as large multi-brand outlets can partner with cab aggregators operating in the country such as Uber, Pink Taxi, ABC Taxi in and more. Dealerships can collaborate with mid-size corporates & companies to offer additional discounts to people within that age bracket if they buy a car using the company’s referral. This collaboration will enable the dealership in generating higher number of leads through the companies, which can ultimately lead to better conversion rates and boost pre-owned car sales.

Analysts at Ken Research in their latest publication UK Used Car Market Outlook to 2026F – driven by declining production of New Vehicles in UK & affordability of used Cars due to increasing cost of living in the Country.” by Ken Research observed that used car market is an emerging automotive market in UK at a rebounding stage from the economic crisis after pandemic. The rising awareness and demand for personal vehicle over public vehicle, increase in disposable income along with rising online platforms for used cars is expected to contribute to the market growth over the forecast period. The market is expected to grow at 11.4% CAGR during 2021-2026F owing to increase in prices of new cars, rise in demand and total sales of used cars.

Key Segments Covered in the Report

  • By Type Vendor
  • Organized
  • Unorganized
  • By Type Of Vehicle
  • Conventional
  • Electric
  • Hybrid
  • By Type Of Fuel
  • Petrol
  • Diesel
  • Others
  • By Sales Channel
  • Online
  • Offline
  • By Type Of Car
  • SUV
  • Crossover
  • Sedan
  • Hatchbacks
  • Pickup Trucks
  • Luxury

Key Target Audience

  • Banks and its Subsidiaries
  • NBFCs
  • Captive Finance Companies
  • Government and Institutions
  • Automobile Companies
  • Car Dealers
  • Government and Institutions
  • Existing Car Finance Companies
  • OEM Dealerships
  • New Market Entrants
  • Investors

Time Period Captured in the Report:

  • Historical Period: 2017-2021
  • Base Period: 2021
  • Forecast Period: 2022-2026F

Key OEM Covered

  • Major OEM and Multi-Brand Outlets
  • Arnold Clark Automobiles Limited
  • Pendragon PLC
  • Sytner Group Limited
  • Lookers plc
  • Vertu Motors PLC
  • Inchcape PLC
  • Available Cars Ltd
  • JCT 600 Ltd
  • Group 1 Automotive

Several Independent Dealers, Auction Houses

  • Online Auto Classified Portals & Marketplaces
  • Auto Trader Group PLC
  • Motorpoint Group PLC
  • Cazoo Ltd
  • Cinch Cars Limited
  • CarGurus UK Limited

Key Topics Covered

  1. Executive Summary
    • How is Used Car Market Positioned in UK
  2. Country Overview of Used Car Market
    • UK Country Overview
    • Key Demographic Indicators of UK
  3. UK Automotive & Used Car Market Overview
    • UK Automotive Market Overview
    • Passenger Car Landscape in UK
    • Ecosystems of Major Entities in Used Car Market
    • Overview and Genesis of Used Car Market in UK
    • Value Chain Analysis
    • Market Size of Used Car Market in UK, 2016- 2021
  4. Market Segmentation of Used Car Market in UK
    • Market Segmentation By Vendor Type (Organized and Unorganized Vendors), 2021
    • Market Segmentation By Vehicle Type (Conventional, Electric & Hybrid), 2021
    • Market Segmentation By Fuel Type (Petrol, Diesel, Others), 2021
    • Market Segmentation By Sales Channel (Offline and Online), 2021
    • Market Segmentation By Type of Car (SUVs/Crossovers, Sedan/Hatchback, Pickup Trucks, Others), 2021
    • Market Segmentation By Brand (Ford, Vauxhall, Volkswagen, BMW, Audi, Mercedes Benz, Toyota, Others), 2021
    • Market Segmentation By Age of Vehicle (0-2 Years, 2-6 Years, 6-8 Years, 8+ Years), 2021
    • Market Segmentation By Region (Scotland, North West, Yorkshire & the Humbert, West Midlands, East, London, South East, South West, & Others), 2021
  5. Customer Analysis
    • Market Segmentation By Customer Age (18- 30 Years, 31- 60 Years, 60+ Years), 2021
    • Market Segmentation By Gender (Male & Female), 2021
  6. Industry Analysis
    • SWOT Analysis of UK Used Car Market
    • Porter’s Five Forces Analysis of Used Car Market
    • Growth Drivers in the UK Used Car Market
    • Issues and Challenges in the UK Used Car Market
    • Trends in the UK Used Car Market
    • Government Rules and Regulations
    • Key Legislations in the Automotive Market in the UK
  7. Pricing Analysis
    • Pricing Analysis of UK Used Car Market, 2021
  8. Competitive Analysis
    • Competitive Analysis for Major Offline Players
    • Competitive Analysis of Major Online Players
    • Cross Comparison of Leading Ten Offline Players in UK Used Car Market, 2021
    • Cross Comparison of Leading Ten Online Players in UK Used Car Market, 2021
    • Cross Comparison of Major Auction Players in UK Used Car Market, 2021
    • Company-wise Sales Analysis of Major Offline Players in UK Used Car Market, 2021
    • Company-wise Sales Analysis of Major Online Players in UK Used Car Market, 2021
  9. COVID-19 Impact
    • Impact of Covid-19 on UK Used Car Market
  10. Future Outlook and Projections
    • UK Used Car Market Size future forecast, 2022 – 2026F
    • Future Market Segmentation By Vendor Type, 2026F
    • Future Market Segmentation By Vehicle Type, 2026F
    • Future Market Segmentation By Fuel Type, 2026F
    • Future Market Segmentation By Sale Channel, 2026F
    • Future Market Segmentation By Type of Car, 2026F
    • Future Market Segmentation By Brand, 2026F
    • Future Market Segmentation By Age of Vehicle, 2026F
    • Future Market Segmentation By Region, 2026F
    • GPS Enabled Cars
    • Features of driverless Cars
  11. Analyst Recommendations
  12. Research Methodology
    • Market Definitions
    • Abbreviations Used
    • Market Sizing Approach
    • Consolidated Research Approach
    • Sample Size Inclusion
    • Research Limitations & Future Conclusion
  13. Disclaimer
  14. Contact Us

For more insights on the market intelligence, refer to the link below:

UK Used Car Industry Future Outlook

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