The Online Used Car Market Is on Course to Pass $164 Billion in 2004
The U.S. online used car market is on the brink of explosive growth. IDC estimates online used car sales’ share of all used car sales will jump from under 3% in 1999 to almost 40% in 2004. However, IDC warns brick-and-mortar car dealers could put up a roadblock in the market’s development.
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“For the online used car-buying market to reach its full potential, online used car firms will need to work hard to provide an integrated system and a full range of vehicle-related services, including financing, insurance, and trade-in services,” said Jonathan Gaw, research manager for IDC’s eAuto program. “Because traditional car dealers make their largest profits from finance and insurance services, they may withhold inventory if online auto dealers threaten this part of their business.”
If the online used car market can steer around this obstacle, IDC believes its revenues will accelerate from less than $10 billion in 1999 to over $164 billion in 2004. “Used cars tend to be high-consideration products for consumers, and the Internet helps to bring clarity to the process and transparency to the market, which would lend greater efficiency to both buyers and sellers,” Gaw said.
IDC’s new bulletin Online Used Car Sales Market Forecast and Analysis, 1999-2004 (IDC #W23085) forecasts growth in the online used car market and analyzes the factors driving the market. To purchase the bulletin, contact Demetra Georgakopoulos at 1-800-343-4952 extension 4496 or demetra@idc.com.
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