Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

The recession and a drop in consumer demand for automobiles are affecting automakers and dealers of both new and used vehicles. These trends are forcing dealers to take a hard look at their offerings and identify new strategies to survive in this more challenging environment. The findings in this report can also help auto makers refine their pre-owned programs to make them as appealing as possible to consumers considering a particular auto brand. More specifically, this report addresses the following questions:

  • What is the size of the used car market, and how is the market likely to grow or contract in the future?
  • How do trends in sales of used cars differ from the used truck segment?
  • What macro-level economic factors are driving or impeding industry growth?
  • What drives consumer demand for used cars and trucks?
  • What makes and models of used vehicles are most popular with consumers?
  • What factors tend to have the most influence on the probability that a consumer will purchase a vehicle from one dealer over another?
  • What can dealers do to ensure they provide a shopping experience that resonates with buyers?
  • Which segments of the population over-index on used auto purchase, and how do these segments differ from low demand segments?

What's included

What's included

Table of contents

Table of contents

  1. 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
                                              • Insights and Opportunities

                                                • Used auto sales more profitable than new cars
                                                  • Consider partnering with food, discount or department stores to create in-store used car marketing kiosks
                                                    • Routinely survey current and potential customers in order to learn how to better serve them and gain competitive advantage
                                                      • Online search tools likely to become more popular, especially during recession
                                                        • Develop viral campaigns to drive word of mouth recommendations
                                                          • Consider promoting vehicles through mobile phone alerts and promotions
                                                            • Annual increases in vehicle cost despite monthly payment sweet spot
                                                              • Demand for used cars higher among Spanish-speaking Hispanics, who also tend to be more receptive to marketing efforts
                                                                • Figure 1: Attitudes toward advertising among Hispanics, by language preference, May 2006-June 2007
                                                                • Figure 2: Metropolitan areas with the largest number of Hispanic residents, by country of origin, 2006
                                                            • Inspire Insights

                                                                • Trend 1: Drive Less, Get More
                                                                  • What’s it all about
                                                                    • What we’ve seen
                                                                      • Implications
                                                                        • Trend 2: Customization
                                                                          • What’s it all about?
                                                                            • What we’ve seen
                                                                              • Implications
                                                                              • 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
                                                                                                                                                                          • Cluster Analysis

                                                                                                                                                                              • Testers
                                                                                                                                                                                • Who they are
                                                                                                                                                                                  • Opportunity
                                                                                                                                                                                    • Dealers
                                                                                                                                                                                      • Who they are
                                                                                                                                                                                        • Opportunity
                                                                                                                                                                                          • Traders
                                                                                                                                                                                            • Who they are
                                                                                                                                                                                              • Opportunity
                                                                                                                                                                                                • Cluster characteristics
                                                                                                                                                                                                  • Figure 50: Used car clusters, November 2008
                                                                                                                                                                                                  • Figure 51: How many used vehicles does your household own? by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 52: Where did you purchase your last used vehicle? by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 53: Why did you purchase a used vehicle and not a new vehicle? by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 54: What was the mileage of the last used vehicle your household bought at point of purchase?, by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 55: Which of these components of the purchase process of a used car were most important to you?, by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 56: Thinking about the last used vehicle your household bought, what kind is it?, by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 57: For what primary purpose(s) does the used vehicle your household uses the most serve?, by used car clusters, November 2008
                                                                                                                                                                                                  • Figure 58: How old is the last used vehicle your household bought?, by used car clusters, November 2008
                                                                                                                                                                                                • Cluster demographics
                                                                                                                                                                                                  • Figure 59: Used car clusters by gender, November 2008
                                                                                                                                                                                                  • Figure 60: Used car clusters by age group, November 2008
                                                                                                                                                                                                  • Figure 61: Used car clusters by income group, November 2008
                                                                                                                                                                                                  • Figure 62: Used car clusters by race, November 2008
                                                                                                                                                                                                  • Figure 63: Used car clusters by Hispanic origin, November 2008
                                                                                                                                                                                                • Cluster methodology
                                                                                                                                                                                                • Custom Consumer Groups

                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                    • Young males, families with teens and the working class are key elements of the target market
                                                                                                                                                                                                        • Figure 64: Incidence of used car purchase, by income, April 2007-June 2008
                                                                                                                                                                                                      • Market for most popular midsize models diverse
                                                                                                                                                                                                          • Figure 65: Incidence of used car purchase, by income, April 2007-June 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

                                                                                                                                                                                                        About the report

                                                                                                                                                                                                        This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                                                                        • The Consumer

                                                                                                                                                                                                          What They Want. Why They Want It.

                                                                                                                                                                                                        • The Competitors

                                                                                                                                                                                                          Who’s Winning. How To Stay Ahead.

                                                                                                                                                                                                        • The Market

                                                                                                                                                                                                          Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                                                                        • The Innovations

                                                                                                                                                                                                          New Ideas. New Products. New Potential.

                                                                                                                                                                                                        • The Opportunities

                                                                                                                                                                                                          Where The White Space Is. How To Make It Yours.

                                                                                                                                                                                                        • The Trends

                                                                                                                                                                                                          What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                                                                        Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                                                                                        Trusted by companies. Big and small.

                                                                                                                                                                                                        • bell
                                                                                                                                                                                                        • boots
                                                                                                                                                                                                        • google
                                                                                                                                                                                                        • samsung
                                                                                                                                                                                                        • allianz
                                                                                                                                                                                                        • kelloggs
                                                                                                                                                                                                        • walgreens
                                                                                                                                                                                                        • redbull
                                                                                                                                                                                                        • unilever
                                                                                                                                                                                                        • Harvard
                                                                                                                                                                                                        • pinterest
                                                                                                                                                                                                        • new-york-time