The U.S. used car market
The used car market in the United States is the largest consumer product category, notes Vroom, Inc.
According to Cox Automotive data, there were an estimated 36.2 million used vehicle transactions there in 2022.
A 2022 NADA auto retail market summary indicates that the U.S. automotive industry generated approximately $1.2 trillion in sales in 2021.
With those benchmarks, Vroom adds that the industry benefits from entrenched vehicle ownership trends among U.S. consumers, with approximately 283 million registered vehicles on the road in 2022, and approximately 91.9% of households in the U.S. owning at least one vehicle in 2021.
Used car
In addition, the overall used vehicle retail market has shown resilience through recessionary markets and other challenging economic cycles.
The U.S. used car market is ripe for disruption as an industry that is notorious for consumer dissatisfaction and has one of the lowest levels of e-commerce penetration.
In all used vehicle sales in 2021, the largest U.S. used car dealer had a market share of about 2%, and the top 100 used car dealers combined account for only about 11%, according to Automotive News.
Industry reports estimate that e-commerce penetration will grow to half of all used vehicle sales by 2030.
Reflecting the shift in consumer behavior toward online shopping, in the Cox Automotive Digitization of End to End Retail Study 2021, 80% of consumers said they wanted to conduct at least part of their vehicle purchase online and 64% of car buyers said they wanted to manage more of their purchase online compared to the last time they purchased a vehicle.
Vroom is an end-to-end e-commerce platform that is transforming the used car industry by offering a better way to buy and sell used vehicles.
The company’s scalable, data-driven technology brings all phases of the car buying and selling process closer to consumers wherever they are, and offers a wide selection of used vehicles, transparent pricing, competitive financing, and home pickup and delivery.
