Technavio has predicted that the worldwide used car market will grow by $703 billion more by 2027. As of late 2022, its size is estimated to clock USD 1.66 trillion. Within the five-year period (2022 – 2027), the compound annual growth rate is foreseen to reach 6.7% by the end of it. The Asia Pacific Region will account for 4 out of 10 vehicles in this growth.
The following are the emerging trends that will grow in prominence in the coming years:
Compact cars will become trendy. The market for compact cars will experience a remarkable rise in the foreseeable period. Compared to larger cars, compact cars have advantages in the following;
- Fuel efficiency (especially with fluctuating prices)
- Environmentally friendly (emits less harmful gasses)
A simple way to determine if a car is the best bang for the buck in terms of fuel efficiency is through a VIN check. Get the fuel data of your vehicle options, then compare how they stack up well against other units.
APAC will get the lion’s share of the used car market growth. The global used car market can be divided into five market regions: Asia Pacific, North America, Europe, Middle East and Africa, and South America.
Of these regions, Asia Pacific will have the most growth, accounting for 41% of the total. Two notable factors that drive growth are the high demand for four-wheelers in China and the explosive growth of car retailing in India and other countries.
Cars change hands with less frequency. Add to this the reduced vehicle ownership duration as more technologically advanced and robust cars are rolled up to entice consumers. Most owners will try to recoup their losses by getting a car sold at the earliest instance.
Subscription services are becoming part of most drivers’ life. These may include roadside assistance, maintenance, and insurance. Those who may not be able to pay for luxury vehicles may opt for car subscription services to get the luxury car experience.
The growing number of taxi operators. Taxi operators present a viable alternative for individuals who want fast and convenient means of transport as well as save time and money on resolving parking issues. The growth of bike taxis is perceived to disrupt the market even more so.
Exploring the Used Car Market Without Worries
The used car market has been booming in recent years, with more and more cars becoming available to consumers. This is due to the increasing affordability of cars, as well as the ability to find reliable vehicles online. But accompanying the increasing lucrativeness of the market is the growing dangers that lurk in it. It is important to be aware of potential red flags when purchasing a used car. And to do so, you may need the aid of a paid or free VIN check to get the full vehicle history you want.
Here are some of the common red flags you should watch out for.
1. Excessive Rust: Rust is common on used cars, but large amounts of rust can lead to costly repairs and indicate that the car hasn’t been properly maintained. Look for any bubbling paint, flaking metal, or visible rust on the body panels, frame, and other parts.
2. Unusual Tire Wear: Uneven tire wear could be caused by worn-out suspension components or damaged alignment. It’s a sign that the car may have been in an accident or driven improperly at some point in its life.
3. Leaks Under the Hood: Fluids are essential to keep a car running smoothly, so any leaks under the hood should be taken seriously. Check around the engine and transmission for any signs of fluid leakage or puddles.
4. Strange Noises: Strange noises like grinding or squealing could indicate a problem with brakes, wheel bearings, belts, or other components of the vehicle. It’s important to have them checked out before buying a used car since they can be expensive to repair or replace later on down the road.
5. Strong Odors Inside: If you notice a strange smell when you enter the car, it could mean there’s mold growing inside from previous water damage or another issue with the interior of the vehicle that needs attention before it becomes worse over time.