, /PRNewswire/ -- Report on how AI is redefining market landscape - The used car market in uk  size is estimated to grow by USD 35.7 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.97%  during the forecast period. Excellent value for money proposition of used cars is driving market growth, with a trend towards improved touchpoint management. However, increasing preference for car subscription services  poses a challenge. Key market players include Alibaba Group Holding Ltd., Aramis Group, Arnold Clark Automobiles Ltd., Auto Trader Group Plc, Bauer Media Group, Car Giant Ltd., Carcraft.co.UK, CarGurus Inc., CarMax Inc., Cazoo Ltd., Cinch Cars Ltd., Constellation Automotive Group Ltd., Group 1 Automotive Inc., Hertz Holdings Inc., Lithia Motors Inc., McCarthy Cars UK Ltd., Motors.co.UK Ltd., Penske Corp., Toyota Motor Corp., and TrueCar Inc..

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Key Market Trends Fueling Growth

The UK used car market is thriving, with trends including the popularity of hatchbacks, sedans, and Sports Utility Vehicles (SUVs). Organized dealerships, including franchised and independent dealers, dominate the market, offering quality used cars from OEMs and banks. NBFCs and insurance companies also play a significant role. Petrol and diesel vehicles continue to lead, but hybrid, electric, and CNG-powered vehicles are gaining ground. OEMs are expanding their dealership networks, offering used car management services. Online sales channels, including auto marketplaces and car subscription services, are growing. The average ownership duration is decreasing, leading to an increase in off-lease vehicles. The organized sector, including franchised dealers and leasing offices, is seeing increased competition from unorganized businesses. Emission standards are a key consideration, with gasoline-fueled cars and diesel-fueled passenger cars facing scrutiny. SUVs, mid-sized, and compact cars dominate the large category, while the electric segment, including used electric vehicles, is growing in the online category. Artificial intelligence and machine learning technology are being used to improve used car valuation and financing, with quality finance charges a key consideration for sellers. 

Online used car dealers in the UK are focusing on enhancing their website experience to attract potential buyers. These sites serve as the primary touchpoint for researching various car models, features, prices, and locations. Dealers use touchpoint management technologies to gather customer feedback on website interface. Customers spend significant time examining car details before making a purchase. Consequently, creating an easy-to-use and visually appealing website is crucial for dealers to engage customers effectively. Many online used car websites offer customized research services to cater to individual buyer preferences. Therefore, investing in an user-friendly and attractive website is essential for success in the used car market. 

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Market Challenges

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Segment Overview 

This used car market in UK report extensively covers market segmentation by

1.1 Organized-  Used car market in the UK is served by various organized vendors, including dealership chains, online marketplaces, and OEM-affiliated dealerships. These vendors ensure a secure transaction by offering guarantees and safeguards to both parties. They facilitate smooth vehicle ownership transfer through local government partnerships, providing transparency regarding timelines and fees. Many vendors offer technical assistance and capital support to customers. They are proficient in digitalization, creating a hassle-free buying experience. Advanced technologies like blockchain are adopted to maintain vehicle ownership records, parts replacement, and service history details, enhancing buyer confidence. For instance, Cars24, an online pre-owned vehicle marketplace, reported that one-third of its sales in April 2022 were made through chat support channels, including WhatsApp and an AI chatbot. The integration of modern technologies, such as AI and blockchain, fuels the growth of the organized used car market segment in the UK.

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Research Analysis

The used car market in the UK is a significant sector of the automobile industry, encompassing a wide range of vehicles including Hatchbacks, Sedans, and Sports Utility Vehicles. The market is organized and unorganized, with both franchised dealerships and independent car dealers playing a role. Petrol and Diesel vehicles dominate, but Hybrid, Electric, and OEM off-lease vehicles are increasingly popular. Banks and leasing offices provide financing options, while car subscription services offer flexible alternatives to traditional ownership. The average ownership duration is around 6 years, and the telecom industry and online marketplaces have disrupted traditional sales channels, leading to an increase in online retailing. Automobile manufacturers continue to play a role in used car management through their dealership networks and OEM certified pre-owned vehicles. Residual values and quality finance charges are key considerations for buyers.

Market Research Overview

The used car market in the UK is a significant sector, encompassing various types of vehicles including Hatchbacks, Sedans, and Sports Utility Vehicles (SUVs). This market is divided into organized and unorganized segments. The organized segment includes franchised dealers, franchise dealership networks, leasing offices, car subscription services, and auto marketplaces. On the other hand, the unorganized segment comprises independent dealers, individual garages, and unorganized dealerships. Used cars are available in various fuel types such as Petrol, Diesel, Hybrid, Electric, and Compressed Natural Gas (CNG)-powered vehicles. The market caters to various segments, including Luxury Vehicles, Mid-sized, Compact, SUV, and Electric vehicles. The market is influenced by several factors such as residual value, quality finance charges, emission standards, and fuel prices. The average ownership duration is decreasing due to the rise of online retailing and car subscription services. Artificial intelligence and machine learning technology are increasingly being used in used car management, enabling better assessment of vehicle condition and history. The market is also witnessing the emergence of Off-lease vehicles and the growth of online sales channels. The UK used car market is served by various players including automobile manufacturers, banks, NBFCs, insurance companies, and OEMs. The market is subject to various regulations and emissions standards set by the government.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Petrol
• Diesel
• Others
• Geography
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio