What is the Current Potential of the UK Used
Car Market?
UK
Used Car Market
is at a late growing stage. The UK used car market in terms of GTV has increased
at a positive CAGR of ~% during the review period 2013-2018. This growth was
supported by increased used car sales in the country. The average ticket price
has also increased by a double digit positive growth rate during the period
2013 to 2018. In addition, there has been a surge in the used car market in UK
due to an increase in the trade values. The used car market experienced a
growth during the period 2013 to 2018 owing to the increase in sales of hybrid,
plug-in hybrid and battery electric cars in the UK automotive space. The used
car market was stimulated due to strong consumer confidence and rising business
profit levels encouraged customers to replace vehicles more often.
The used to
new car ratio has been found around ~ in 2018. There has been an increasing
trend in the car parc, having a CAGR of approximately ~% during the period 2013
to 2018. The increase in the used car sales has positively impacted the car
parc in the UK. In 2015, used car market experienced a drop due to soaring
prices of the used cars, owing to which the sales declined in the country. This
was coupled by the heavy supply and the weakening demand which directly
impacted the retail outlets. The decreasing demand for diesel cars impacted the
growth of the used cars across the region. The disposable income growth dropped
in the year 2015 due to which the consumer spending decreased, thereby,
imposing a negative impact on the used car GTV in 2015 and 2017.
UK Used Car Market Segmentation
By Market Structure (Organized and Unorganized
Market):
The organized used car sector, which consists of the OEM-certified used cars
and the multi brands used car dealerships, constitute a market share of roughly
~ % in terms of used cars sales volume across the region. The organized used
car market is dominant in the overall used car space in UK owing to the fact
that they offer documentation regarding the stringent inspection process, MOT
and transfer of ownership. Organized sector provides high quality duly
certified used cars which are carefully inspected and usually cause no
discrepancies. They also offer the after sales services due to which the
customers are attracted more towards the organized dealerships as compared to
the unorganized dealers in the UK.
By Type of Cars (MPVs / Sedans, Economy /
Hatchbacks and SUVs):
Hatchback is the type of car which has captured the biggest portion in the
market share. It has almost ~ % market share in the UK used car market in 2018.
This is followed by SUV’s and then Sedans owing to higher used car prices of
this category.
By Kilometers Driven: Old-age vehicles with an average
ownership period of 6-8 years or above are exposed towards high wear and tear
therefore, increasing their overall vehicle maintenance cost. Pre-owned cars
falling in the range of 20,000-80,000 km driven collectively dominated UK used
cars market along with volume share of ~% therefore, evaluated at ~ thousand
units in the year 2018.
By Manufacture Year: Cars manufactured during the period
2009-2018 dominated UK used cars market along with a massive collective volume
share of ~ % thus, evaluated around ~
thousand units during 2018. This segment recorded highest sales owing to
the fact that potential buyers had a large variety of used car models to choose
from. The least market share is being captured by the used cars manufactured
before the year 2002.
What is the Competition Scenario in the UK
Used Car Market?
The
competition in the UK used car market has been observed to be highly fragmented
with a huge number of used car dealerships present in the UK market. The
OEM-certified dealers and multi brand dealers make up the organized space in
used car market which accounts around ~% of the market share in 2018. The
online website is more prevalent in the organized sector for lead generation as
compared to the unorganized sectors. Local dealers and the individual sellers’
together form the unorganized space in the overall used car market in UK, which
accounts for approximately ~ % market share in the country, 2018. Competition
in tier two and tier three cities is comparatively low in comparison to
metropolitan cities of the UK. There are many local dealers, small garages and
many individual sellers which forms the unorganized space, constituting
approximately ~ % in the used car market in UK.
Most of the
lead generation of the used car is contributed from the offline dealership
stores. About ~% of the used car sales are being generated from the offline
stores and only ~% lead is generated from the online websites of the used cars.
Parameters
on the basis of which the used car dealerships compete are number of network
chains, marketing initiatives, certification, margins, price, after sales
services, lead generation, types of warranty, brand partnerships and number of
dealers.
Key
Segments Covered
Market
Structure
Organized
Sector
By Sales Channel (Multi-Brand Dealers
and OEM-certified Dealers)
By Lead Generation (Dealerships
Walk-ins and Online Car Portals)
Unorganized
Sector
By Sales Channel (C2C and Local
Dealerships)
By Lead Generation (Dealerships
Walk-ins and Online Car Portals)
Type
of Used Cars
MPVs / Sedans
Economy / Hatchbacks
SUVs
Kilometers
Driven
Less than 5,000 km
5,000-20,000 km
20,000-50,000 km
50,000-80,000 km
80,000-120,000 km
Above 120,000 km
Year
of Manufacture
< 2000,
2000-2002
2003-2005
2006-2008
2009-2012
2013-2018
Key
Target Audience
Offline Dealers
Online Portal
Organized Multi Brands Dealers
OEM Certified Dealerships
Online Portal
Private Equity and Venture Capitalist
Industry Associations
OEM Manufacturers
Automotive Manufacturers
Car Auction Companies
Time
Period Captured in the Report:
Historical
Period - 2013-2018
Forecast
Period - 2018-2023
Online
Companies Covered:
Carsnip
Autovillage.co.uk
Auto Trader Group PLC
Motors.co.uk
Desperate Sellers
Exchange and Mart
Gumtree
Inchcape PLC
Bristol Street Motors
Offline
Companies Covered:
Mazda Approved Used Cars
Pendragon PLC Group
Toyota Plus Approved Used Cars
Sytner Group
Lookers Group
Marshall Motors
Vertu Motors
Key
Topics Covered in the Report
Introduction to the UK Used Car Market
UK Used Car Market Size, 2013-2018
UK Used Car Market Segmentation, 2018
Trends and Developments in UK Used Car
Market
Issues and Challenges in UK Used Car
Market
Decision Making Process in UK Used Car
Market
Customer Pain Points in UK Used Car
Market
UK Used Car Auction Market
Online Comparative Landscape in UK
Used Car Market
Offline Comparative Landscape in UK
Used Car Market
Government Regulations in UK Used Car
Market
Business Model in Online Used Car
/Market
Working Model in the UK Used Car
Market
OLX Used Car Success Story
UK Used Car Market Future Outlook and
Projections, 2018-2023
Analyst Recommendation for UK Used Car
Market
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Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-9015378249
