Latin America Used Car Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Latin America Used Car Market Growth

Only 1.5 of 10 people own a car in Latin America. Unorganised vendors account for 90% of overall second-hand automotive sales in the region. This creates prohibitive barriers for people to access financing solutions, since institutions prefer lending for purchases made through professional dealerships. As per the market analysis, no formal player occupy over 1% of the Latin America used car market share. This has prompted many startups, such as Kavak, to expand their market presence by enhancing people’s access to financing used cars and reducing the risk of fraudulent transactions. The company finances around 50% of overall used car sales on its platforms, which is much higher than the industrial average of 10%. This is creating a favourable market outlook for the forecast period.

Moreover, the Andean region (including countries such as Chile, Peru, Ecuador, Argentina, and Venezuela) accounts for over 3 million used car transaction worth over USD 24 million annually. Colombia is regarded as one of the major markets for second-hand automotives in Latin America after Mexico, accounting for 1.2 million used car deals annually. As per industry reports, Mexico accounts for 6 million used car transactions in Latin America but only 5% of deals receive adequate financing. This is expected to prompt market players to make increasing investments into expanding the accessibility to financing options, which is expected to contribute to the Latin America used car market expansion.

Key Trends and Developments

Latin America Used Car Market Trends

Nearly 90% of automotives present in most regions of Latin America are imported from North American and European countries. Of this, almost 80% fail to meet the minimum environmental protection and safety standards laid out by global agencies. Presence of an inadequate public transportation infrastructure has prompted people to shift towards used cars, but private motorisation levels remain at around 3%. While the global transportation industry accounts for 24% of global carbon emissions, Latin America’s transportation industry accounts for 35% of total carbon emissions. This is expected to prompt governments to introduce stringent norms for imported second-hand vehicles, thereby favouring the market growth.

Latin America Used Car Industry Segmentation

Latin America Used Car Market Share

Based on country, the market is segmented into Brazil, Mexico, and Argentina, among others. Mexico is projected to dominate the market, representing 17.2% of the overall market share. Over the forecast period, the demand for used cars in Mexico is expected to grow at a CAGR of 5.8% due to the growing demand for high-quality second-hand automotives in foreign markets. The market is also expected to be influenced by the introduction of stringent vehicular safety standards.

Leading Companies in the Latin America Used Car Market

Major players are enhancing their digital market presence and focusing on improving customer purchase experience to increase the Latin America used car market value.

Latamautos Mexico

Latamautos Mexico was founded in 2014 and is headquartered in Mexico City. It operates in 6 countries across South America and is engaged in providing financing, insurance, vehicle tracking, and mechanical warranties for automotives, among other services.

Dalton Corporativo

Dalton Corporativo was founded in 2022 and is headquartered in the United States. As per Latin America used ca...

Zapata Corporation

Zapata Corporation was founded in 2008 and is headquartered in France. It is engaged in pioneering innovative ...

Toyota Motor Corporation

Toyota Motor Corporation was founded in August 1937 and is headquartered in Toyota City, Japan. It is engaged ...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other players included in the Latin America used car market report are S. de RL de CV, AUTOCOM SEMINUEVOS, SAPI DE CV, Grupo Seminuevos Coapa, S.A. de C.V., Car One SA, CHECK MOVILIDAD SA (KAVAK), CarAgencia S.A, Chileautos SpA, AUTOSUSADOS CHILE, and AUTOMAX SAS, among others.