A used car, also known as a pre-owned vehicle and second hand car, is a vehicle that has
previously had one or more owners. Used cars are sold through a variety of outlets, which
include franchise and independent dealers, rental car companies, leasing companies, and used car superstores. Some car retailers offer "no-haggle prices," and "certified" used cars, and extended service plans or warranties. Individuals can also sell and purchase used cars through resources, such as newspaper and online classifieds.
Used Cars Industry
With annual sales of nearly $370 billion, the used vehicle industry represents almost half
of the U.S. auto retail market and is the largest retail segment of the economy. In 2005, about 44 million used cars were sold in the U.S., which is more than double that of the nearly 17 million new cars sold.
The used vehicle market is substantially larger than other large retail sectors, such as the school and office products market ($206 billion in estimated annual sales) and the home improvement market ($291 billion in estimated annual sales).
Used vehicle history reports
An estimated 34-percent of consumers are buying vehicle history reports for used cars more frequently, partially in reaction to the number of vehicles that may have been damaged by flooding during hurricanes. About 30-percent of manufacturer franchise dealers provide vehicle history reports to customers at no additional cost. In addition, some car retailers, such as CarMax and online car classified advertisers, such as AutoTrader.com offer vehicle history reports for their inventory at no charge to customers. Consumers can also purchase vehicle history reports online through companies like AutoCheck and Carfax.com.
