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Small used car lot in the United States.
Typical new car dealership selling used cars outside the showroom.
A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" used cars, and extended service plans or warranties.
Used car industry
With annual sales of over US$350 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 2016, about 17.6 million used cars and trucks were sold in the United States, a slight increase from 17.5 million used cars sold in 2015.
History
In 1898, the Empire State Motor Wagon Company in Catskill, New York is one of the very first American used car lots.[1]
The used vehicle market is substantially larger than other large retail sectors, such as the school and office products market (US$206 billion in estimated annual sales) and the home improvement market (US$291 billion in estimated annual sales).[citation needed]
As of 2016, 38.5 million used vehicles were sold.[2]
Used vehicle retailer
A sign for a used car dealership in Utah in 1981.
The Federal Trade Commission recommends that consumers consider a car retailer’s reputation when deciding where to purchase a used car.
Vehicle history reports
In 2006, an estimated 34% of American consumers bought a vehicle history report for used cars.[3] Vehicle history reports are one way to check the track record of any used vehicle. Vehicle history reports provide customers with a record based on the vehicle's serial number (VIN). These reports will indicate items of public record, such as vehicle title branding, lemon law buybacks, odometer fraud, and product recall. The report may indicate minor/moderate collision damage or improper vehicle maintenance. An attempt to identify vehicles which have been previously owned by hire car rental agencies, police and emergency services or taxi fleets is also made. Consumers should research vehicles carefully, as these reporting services only report the information to which they have access.
In some countries the government is a provider of vehicle history, but this is usually a limited service providing information on just one aspect of the history, such as the MOT history. The U.S. Department of Justice's National Motor Vehicle Title Registration System has only about a dozen approved data providers, about half of which sell car history data to consumers; the rest work only with car dealers. None of them are currently free of charge to consumers and many are not free even to the car dealers. [4] The Better Business Bureau recommends using one of these approved data providers when researching a used car..
In the UK, the DVLA provides information on the registration of vehicles to certain companies for consumer protection and anti-fraud purposes. Companies may add to the reports additional information gathered from police, finance and insurance companies.
Used car pricing
Laws and regulations
Geographically specific laws
European Union
Used cars have a statutory warranty according to the system of laws of the European Union, the so-called "Liability for defects", which lasts for 12 months.
Australia
In the Australian state of Queensland, when the odometer reading is fewer than 160,000 kilometres (99,000 mi), and the car was manufactured less than 10 years before the sale date, the warranty is three months or 5,000 kilometres (3,100 mi), whichever happens first.