Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Sales data
- Abbreviations and terms
- Executive Summary
- Market size and forecast
- Competitive context
- Segment performance
- Market drivers
- Used vehicle usage
- Brand qualities
- Most popular type of used cars
- Where consumers purchase used cars
- Innovation and innovators
- Advertising and promotion
- Buying cars for commuting purposes and for children
- Attributes commonly considered when purchasing a used vehicle
- Reasons for purchasing used vehicle
- Most important elements of the purchase process
- Race and ethnicity
- Market Size and Forecast
- Key points
- Sales of cars and trucks drop as a result of recessionary pressures and a
drop in consumer demand
- Figure 3: Total U.S. sales of used cars and trucks at current prices,
2003-13
- Figure 4: Total U.S. sales of used cars and trucks at inflation-adjusted
prices, 2003-13
- Unit sales remain well below 2002 levels; price increases partially
mitigated effect of low sales volume
- Figure 5: Total number of used cars and trucks sold in US, 2002-07
- Competitive Context
- Key points
- Use of public transportation, bikes and walking on the rise
- Figure 6: Incidence of public transportation use, by age, October 2008
- Zipcar provides viable alternative to ownership for millions of urban
dwellers and college students
- The internet is making it easier for individual sellers to compete with
dealerships
- Segment Performance
- Key points
- Used trucks sales grew faster than cars during the housing boom
- Fuel economy concerns will fuel used car growth, hinder used truck growth
- Figure 7: U.S. sales of used cars and trucks, by segment, 2003-13
- Figure 8: U.S. sales of used cars and trucks, by segment, 2006 and 2008
- 35-44 year olds spend the most on used cars and trucks
- Figure 9: Percentage of US used car and truck sales, by age of
householder, 2006
- Segment Performance--Used Cars
- Some dealers focus more on used segment as new car sales plummet, and used
sales remain relatively steady
- Figure 10: Total U.S. sales of used cars at current prices, 2003-13
- Figure 11: Total U.S. sales of used cars at inflation-adjusted prices,
2003-13
- Segment Performance--Used Trucks
- Used truck market showed momentary resilience, but is poised for continued
decline
- Figure 12: Total U.S. sales of used trucks at current prices, 2003-13
- Figure 13: Total U.S. sales of used trucks at inflation-adjusted prices,
2003-13
- Market Drivers
- Key points
- Consumer confidence undermines willingness to purchase automobiles
- Figure 14: Consumer sentiment index, 2001-08
- Used car segment may be less susceptible to recessionary pressures
- Americans are keeping their cars longer
- Young adult segment will help drive market growth
- Figure 15: Population aged 18 or older, 2003-13
- Increase in Hispanic population will help fuel used vehicle market growth
- Figure 16: Population by race and Hispanic origin, 2003-13
- American lifestyles changing, many driving less
- Figure 17: Number of miles driven annually on all U.S. roads, November
2003-November 2008
- Figure 18: Eco-friendly strategies for reducing energy spending, by age,
October 2008
- From extra credit in 2003 to insufficient credit in 2008
- Bailout of U.S. auto companies could aid sales of U.S. made used cars
- Brand Qualities
- Key points
- Most popular used makes and models
- Japanese mid-size vehicles among the most popular in the U.S.
- Figure 19: Ranking of 10 most popular types of used vehicles, Q2 and Q3
of 2008
- Consumer perceptions of popular makes and models
- Honda
- Toyota
- Ford
- Domestic models popular among used car buyers
- Figure 20: Brand of car most recently acquired, by acquisition type,
April 2007-June 2008
- Innovation and Innovators
- Key points
- The LIVE X/Wal-Mart partnership
- CarMax: Creating a seamless transition between online research and the
purchase process
- Creating confidence: The Hyundai Assurance
- GPS to ensure vehicles are not lost when loans default
- Certified pre-owned programs
- Advertising and Promotion
- Key points
- Analysis of key advertising themes
- Technology and twenty-somethings
- Figure 21: The way car buying should be, carmax,.com, 2008
- Figure 22: Cars.com ad targeted to young males ad, 2008
- Pre-owned BMWs: Too good to be true?
- Figure 23: Man Brings Priest with him, 2008
- The importance of the internet: Most customers conduct research and
purchase a car they found online
- Carmax.com
- Usedcars.com
- Marketing strategies to drive growth
- Providing customers with the emotional experience they want
- Figure 24: Feeling experienced when driving, August-September 2008
- The rise of 2.0 and importance of community
- The importance of Hispanics
- Used Vehicle Usage
- Key points
- Most households own a used vehicle; young adults heavy users
- Figure 25: Incidence of used car purchase, by age, April 2007-June 2008
- Households with 18-24 year olds have a higher average number of used
vehicles
- Figure 26: Number of used vehicles owned in household, by age, November
2008
- Lower income households more likely to purchase used cars
- Figure 27: Incidence of used car purchase, by income, April 2007-June
2008
- Demand for used cars often higher in rural areas
- Figure 28: Number of used vehicles owned in household, by population
density, November 2008
- Most Popular Type of Used Cars
- Key points
- Midsize cars most popular used models
- Figure 29: Type of car most recently acquired, by acquisition type,
April 2007-June 2008
- Four-door passenger sedans are a hot item
- Figure 30: Vehicle type, by age, November 2008
- Most customers favor models that are at least three years old
- Figure 31: Age of last used vehicle bought, by age, November 2008
- Where Consumers Purchase Used Cars
- Key points
- Dealerships are the most commonly utilized channel
- Figure 32: Purchase location of last used vehicle, by income, November
2008
- Figure 33: Purchase location of last used vehicle, by age, November 2008
- Common Uses of Used Cars
- Key points
- Commuting most common use of used cars
- Figure 34: Primary purpose of used vehicle, by age, November 2008
- Figure 35: Primary purpose of used vehicle, by income, November 2008
- Attributes Commonly Considered when Purchasing a Used Vehicle
- Key points
- Comfort, gas mileage, and performance most important attributes
- Figure 36: Most important factors in purchase besides price and odometer
reading, by age, November 2008
- Figure 37: Most important factors in purchase besides price and odometer
reading, by income, November 2008
- Reasons for Purchasing Used Vehicle
- Key points
- Affordability and need for better gas mileage key drivers of used vehicle
purchase
- Figure 38: Reason for purchasing a used opposed to new vehicle, by age,
November 2008
- Figure 39: Reason for purchasing a used opposed to new vehicle, by
income, November 2008
- Most Important Elements of the Purchase Process
- Key points
- Test drive, vehicle history report, and dealer warranty all critical
elements in closing a deal
- Figure 40: Most important purchase process components, by income,
November 2008
- Figure 41: Most important part of the purchasing process, by age,
November 2008
- Race and Ethnicity
- Key points
- Hispanics over-index on used car purchase and have higher average annual
expenditures
- Figure 42: Incidence of used car purchase, by race/ethnicity, April
2007-June 2008
- Figure 43: Number of used vehicles owned in household, by
race/ethnicity, November 2008
- Hispanics spend far more on used trucks than non-Hispanics
- Figure 44: Average annual expenditure on used cars and trucks, Hispanic
vs. Non-Hispanic, 2006
- Demand for used cars is higher among Spanish speaking Hispanics
- Figure 45: Vehicle most recently acquired in Hispanic households, by
language preference, April 2007-June 2008
- Hispanics and whites somewhat more likely to favor American-made vehicles
- Figure 46: Brand of used car most recently acquired, by race/ethnicity,
April 2007-June 2008
- Hispanics and blacks driven to purchase largely by need for commute vehicle
- Figure 47: Primary purpose of used vehicle, by race/ethnicity, November
2008
- Hispanics and blacks often purchase older vehicles with more miles than
the average
- Figure 48: mileage at point of purchase of last used vehicle bought, by
race/ethnicity, November 2008
- Dealer financing especially important to Hispanics and blacks
- Figure 49: Most important part of the purchasing process, by
race/ethnicity, November 2008
- Appendix: Other Useful Consumer Tables
- Figure 66: Brand of used car most recently acquired, by HH income, April
2007-June 2008
- Figure 67: Type of used car most recently acquired, by race/ethnicity,
April 2007-June 2008
- Figure 68: Most important factors in purchase besides price and odometer
reading, by race/ethnicity, November 2008
- Figure 69: Vehicle type, by race/ethnicity, November 2008
- Figure 70: Age of last used vehicle bought, by race/ethnicity, November
2008
- Figure 71: Purchase location of last used vehicle, by race/ethnicity,
November 2008
- Figure 72: Reason for purchasing a used opposed to new vehicle, by
race/ethnicity, November 2008
- Figure 73: Reason for purchasing a used opposed to new vehicle, by
income, November 2008
- Figure 74: Type of car most recently acquired, by HH income, April
2007-June 2008
- Figure 75: Vehicle type, by income, November 2008
- Appendix: Trade Associations
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