The average lifecycle of a car in 2014
Trend towards second hand cars becomes increasingly popular
31 JANUARY 2014
SummaryBerlin, January 31st 2014 – Worldwide spending in the automobile industry and the rising intensity of global competition has triggered an increase in the average lifecycle of cars. According to a research by Polk carried out in 2013 the average age of vehicles which is 11.4 years is continuously growing. Today new cars are kept for at least 6 years (in comparison to 2003 which was 4 years) before it is handed over to a new owner.
Berlin, January 31st 2014 – Worldwide spending in the automobile industry and the rising intensity of global competition has triggered an increase in the average lifecycle of cars. According to a research by Polk carried out in 2013 the average age of vehicles which is 11.4 years is continuously growing. Today new cars are kept for at least 6 years (in comparison to 2003 which was 4 years) before it is handed over to a new owner.
The option to finance used vehicles becoming more of an easy process combined with the public perception that loans for new vehicles remain tight, has fueled a spike in used-car sales. As a result of nowadays longer life expectancy of a car it has had at the end up to 6 different owners. Back in the 60s the average driven kilometers of a car counted 160 000km, whereas nowadays car can easily be driven up to 320 000 – 480 000km.
According to Capgemini in 2012 94% (in comparison to 2002 which was 20%) of European car shoppers started their car buying process with online research. There is a huge shift within the consumer buying cycle away from offline purchases at a dealer’s showroom towards taking advantage of e-commerce. This trend, however, will not only take place in the US and in Europe, but will surely spill over to emerging markets in the upcoming years due to the increasing global internet penetration rate.
Stefan Haubold, Co-Founder Carmudi: “The trend towards second hand vehicles is a global development, which will also continue in the upcoming years. This means the demand for high-quality automotive classified platforms will rise in future as well. At Carmudi we bring buyers and sellers together on a secure and user-friendly online interface that provides the necessary price transparency in order to compare the prices of thousands of vehicles in an easy fashion. With the increasing adoption of online services in all the countries we are currently active in, we expect to see a rapid transition from a more traditional offline market to a thriving online community, benefiting both buyers and sellers.”
The vehicle marketplace www.carmudi.com enables customers to easily find or sell their car, motorcycle or commercial vehicle online. At the same time, vehicle dealers and agents gain a trusted online presence through a personalized webpage. Carmudi offers diverse vehicle listings, an intuitive website design and high security standards to avoid fraud. The business platform operates under a high level of transparency and symmetry through the use of professional photos, updated listings, detailed descriptions, reports and rankings for 100% of its vehicles in each market. The Carmudi platform helps sellers manage their inventory in a fast, easy and stress-free manner.
www.carmudi.com was founded in 2013 and is currently available in Bangladesh, Indonesia, Mexico, Myanmar, Nigeria, Pakistan, Philippines and Indonesia. The vehicle marketplace offers buyers the ideal platform to find cars, motorcycles and commercial vehicles online. For more information please visit www.carmudi.com
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About Rocket Internet
About Rocket Internet
Rocket Internet incubates and invests in Internet companies with proven business models. It provides operational support to its companies and helps them scale internationally. Rocket Internet focuses predominantly on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Rocket Internet’s selected companies are active in a large number of countries around the world with more than 28,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.