Why Used Cars?
Overall Quality Improvement
Change in Public Attitude
Emergence of Organizations
| Mileage | 2010 MY | 2011 MY | 2012 MY | 2013 MY | 2014 MY | 2015 MY | 2016 MY | 2017 MY |
|---|---|---|---|---|---|---|---|---|
| 0–10K | 63% | 66% | 71% | 76% | 83% | |||
| 10–20K | 53% | 55% | 57% | 60% | 65% | 70% | 73% | 73% |
| 20–30K | 50% | 53% | 55% | 58% | 63% | 68% | 69% | 69% |
| 30–40K | 48% | 50% | 53% | 57% | 61% | 66% | 63% | 66% |
| 40–50K | 45% | 48% | 51% | 55% | 59% | 62% | 60% | |
| 50–60K | 43% | 46% | 49% | 53% | 57% | 61% | 61% | |
| 60–70K | 41% | 44% | 47% | 51% | 55% | 59% | ||
| 70–80K | 40% | 42% | 45% | 48% | 53% | 57% | ||
| 80–90K | 37% | 40% | 42% | 46% | 51% | |||
| 90–100K | 35% | 38% | 40% | 43% | 48% | |||
| 100–110K | 33% | 36% | 37% | 41% | ||||
| 110–120K | 32% | 35% | 36% | 39% | ||||
| 120–130K | 30% | 33% | 35% | 37% | ||||
| 130–140K | 29% | 31% | 32% | |||||
| 140–150K | 27% | 30% |
Residual Value Table
To purchase a newer vehicle with high mileage or an older vehicle with fewer miles?
Overall, depreciation curves for mileage are very linear regardless of vehicle age. It also appears as if consumers are not as picky about high-mileage vehicles as perceived.
Edmunds, 2017.Personal Contract Purchase
A new type of financial plan allows customers to pay an initial deposit and a fixed monthly payment based on an agreed term or annual mileage. At the end of the term, the user can either pay off the remainder or trade in the vehicle as a deposit for a new car, or sign a new loan agreement.
This plan is usually set 3 years each time since the vehicle inspection is compulsory on the 3rd year after buying a new car, and it is a reasonable timing to change cars to avoid the expense. Furthermore, we believe that the spread of this plan type pushes the supply of used cars as well as the quality of used cars (such as lower mileage).
In the U.K. market, approximately 80% of new car sales are financed and driven by this kind of contract plan in 2016.
Manheim Consulting, 2017.Market Statistics
Geographical Segmentation
The global used car market is projected to reach 128.42 million units by 2021, growing at a CAGR of more than 7% over the forecast period.
Technavio, 2017.Japan Market Export Rate
In Japan, over 30% of the used cars are exported. As the table shows, the export volume is increasing in trend.
Japan Automobile Dealers Association, 2017.Japan Market Export Destination
In 2016, United Arab Emirates occupied the most share of all used car export from Japan, and achieved its highest record so far.
Ministry of Finance, Japan, 2017.
