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{{Short description|Vehicle previously owned by another}}
{{Redirect-multi|2|Second-hand car|Used cars|the 1980 comedy film|Used Cars{{!}}''Used Cars''|the Bruce Springsteen song|Nebraska (album){{!}}''Nebraska'' (album)|the Kim Churchill song|Second Hand Car (song)}}
{{More citations needed|date=August 2017}}
[[File:Lono Avenue Value Center Used Car Lot.JPG|right|thumb|Small used car lot in the United States.]]
[[File:Car dealership in Rockville Maryland Jeep.jpg|thumb|right|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 [[retailing|retail]] owners. Used cars are sold through a variety of outlets, including franchise and independent [[car dealership|car dealer]]s, [[car rental|rental car]] companies, [[Buy here, pay here|buy here pay here]] dealerships, leasing offices, auctions, and private party sales. Some car retailers offer [[fixed price|"no-haggle" prices]], "[[Certified pre-owned|certified]]" used cars, and [[service plan|extended service plan]]s or [[warranty|warranties]].
== Used car industry ==
===Used car export industry===
{{See also|Phase-out of fossil fuel vehicles#Second-hand vehicle dumping}}
Depreciation levels of vehicles differ a lot in exporting and importing countries due to differences in income levels. The price of a vehicle depreciates faster in high-income countries than in low-income countries. Used vehicles sellers in high-income countries can thus sell their used vehicles for a higher price in low-income countries. This is the incentive to export used vehicles.<ref name="unece2017">{{cite web|url= https://www.unece.org/fileadmin/DAM/trans/doc/2017/itc/UNEP-ITC_Background_Paper-Used_Vehicle_Global_Overview.pdf |title=Used Vehicles: A Global Overview |publisher=United Nations Economic Commission for Europe |date=2017 |access-date=7 October 2020}}</ref>
The major car exporting countries (which includes both new and used vehicles) are Japan, the EU, USA, and Canada.<ref name="unece2017"/>
In the EU, 60% of used cars are marketed in other EU countries. The used car exports in the EU are focused on East Europe, the Caucasus, Central Asia, and Africa.<ref name="unece2017"/>
In the US, used vehicle exports are focused on Mexico, Nigeria, and Benin.<ref name="unece2017"/>
The African continent gets 90% of its imports from Europe.<ref>{{Cite web|last=Environment|first=U. N.|date=2020-10-23|title=Global Trade in Used Vehicles Report|url=http://www.unep.org/resources/report/global-trade-used-vehicles-report|access-date=2021-02-25|website=UNEP - UN Environment Programme|language=en}}</ref> Many of these cars would not meet European emission standards.
===Used car industry in the US===
Established in 1898, the Empire State Motor Wagon Company in [[Catskill (town), New York|Catskill, New York]] was one of the first American used car lots.<ref>{{cite book|last=Flammang|first=James M.|title=100 Years of the American Auto: Millennium Edition|year=1999|publisher=Publications International|isbn=9780785334842}}</ref>
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$291 billion in estimated annual sales).{{citation needed|date=January 2018}}
With annual sales of over [[US$]]350 billion, the used vehicle industry represents almost half of the US 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]], and 38.5 million were sold worldwide.<ref>{{cite web |url=https://dealers.edmunds.com/static/assets/articles/2017_Feb_Used_Market_Report.pdf |title=Market Report|date=2017 |website= dealers.edmunds.com}}</ref>
== Used vehicle retailer ==
[[File:Kleen Kars sign, Salt Lake City, Utah.jpg|thumb|A sign for a used car dealership in [[Utah]] in 1981.|upright]]
The [[Federal Trade Commission]] recommends that consumers consider a car retailer's reputation when deciding where to purchase a used car.<ref>{{Cite web|date=2016-11-08|title=Buying a Used Car|url=https://www.consumer.ftc.gov/articles/0055-buying-used-car|access-date=2020-12-27|website=Consumer Information|language=en}}</ref>
===Vehicle history reports ===
In 2006, an estimated 34% of American used-vehicle buyers bought a vehicle history report.<ref>{{cite web|url= http://www.theautochannel.com/news/2006/05/10/006250.html |title=J.D. Power and Associates Reports: Vehicle History Reports Are Becoming Increasingly Important to Used-Vehicle Buyers |publisher=Theautochannel.com |access-date=2010-08-15}}</ref> 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 [[vehicle identification number]] (VIN). These reports will indicate items of public record, such as transfers of ownership, [[vehicle title branding]], [[lemon law]] buybacks, [[odometer fraud]], and [[product recall]]. The report may also indicate maintenance records and whether a vehicle has suffered collision damage, improper maintenance, or other problems. An attempt to identify vehicles that have been previously owned by [[car rental]] agencies, [[Emergency service|police and emergency services]], or [[taxi]] fleets is also made. Consumers should research vehicles carefully, as vehicle 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 United Kingdom's [[MOT test|Ministry of Transport 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.<ref>{{citation |publisher=U.S. Department of Justice, National Motor Vehicle Title Registration System |url= https://www.vehiclehistory.gov/nmvtis_vehiclehistory.html |title=Research Vehicle History; Approved NMVTIS Data Providers |access-date=7 October 2020}}</ref> The [[Better Business Bureau]] recommends using one of these approved data providers when researching a used car.<ref>{{cite web|url= https://www.bbb.org/utah/news-events/bbb-scam-alerts/2016/04/questionable-vehicle-history-report/ |date=April 5, 2016 |title= Selling a Car? Watch Out for Fake Buyer Trying to Trick you into Buying Questionable Vehicle History Report |publisher=Better Business Bureau |archive-url= https://web.archive.org/web/20160611194722/https://www.bbb.org/utah/news-events/bbb-scam-alerts/2016/04/questionable-vehicle-history-report/ |archive-date=11 June 2016 |access-date=7 October 2020}}</ref><ref>{{cite web|url=https://www.bbb.org/article/news-releases/17576-bbb-tip-vehicle-title-scam |date=September 8, 2020 |title=BBB Warning: Vehicle title scams |publisher=Better Business Bureau |access-date=7 October 2020}}</ref> The history reports use several sources to gather the data for each vehicle, including the police, the [[Driver and Vehicle Licensing Agency]] (DVLA), finance houses, the national mileage register, insurance companies, and industry bodies.<ref>{{cite web|url= https://hpicheck.com/what-is-an-hpi-check |title=What is a HPI Check? |website=HPICheck |access-date=7 October 2020}}</ref>
Several of the services, most notably those in the [[United Kingdom]] and the United States, sell reports to dealers and then encourage the dealers to display the reports on their websites. These reports are paid for by the dealer, and then offered for free to potential buyers of the vehicle.
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 of additional information gathered from police, finance, and insurance companies. Car history check services are available online for the public and motor trade customers.
In India, the Ministry of Road Transport and Highways is responsible for providing information related to vehicle registration and service history.<ref>{{cite web |title=Parivahan Sewa - Ministry of Road Transport & Highways, Government of India |url= https://parivahan.gov.in/parivahan/ |website=parivahan.gov.in |access-date=7 October 2020}}</ref>
== Used car pricing ==
{{see also|Automobile salesperson#Car negotiation}}
[[File:Dover Ford used car centre - geograph.org.uk - 3027704.jpg|thumb]]
Used car pricing reports typically produce three forms of the pricing information.
* Dealer or retail price is the price expected to pay if buying from a licensed new-car or used-car dealer.
* Dealer trade-in price or wholesale price is the price a shopper should expect to receive from a dealer if trading in a car. This is also the price that a dealer will typically pay for a car at a dealer wholesale auction.
* Private-party price is the price expected to pay if buying from an individual. A private-party seller is hoping to get more money than they would with a trade-in to a dealer. A private-party buyer is hoping to pay less than the dealer retail price.
The growth of the [[Internet]] has fueled the availability of information on the prices of used cars. This information was once only available in trade publications that dealers had access to. There are now numerous sources, such as online appraisal tools and internet classified ads, for used car pricing.<ref>{{Cite web|title=Edmunds TMV - True Market Value / True Car Value|url=https://www.edmunds.com/tmv.html|website=[[Edmunds.com]]}}</ref> Multiple sources of used car pricing means that listed values from different sources may differ. Each pricing guide receiving data from different sources and makes different judgments about that data.
The pricing of used cars can be affected by geography. For example, [[convertible]]s have a higher demand in warmer climates than in cooler areas. Similarly, [[pickup truck]]s may be more in demand in [[rural area|rural]] than [[urban area|urban]] settings. The overall condition of the vehicle has a major impact on pricing. Condition is based on appearances, vehicle history, mechanical condition, and mileage. There is much subjectivity in how the condition of a car is evaluated.<ref>{{cite web |url=http://autos.msn.com/kbb/faq.aspx |title=Kelley Blue Book - MSN Autos |publisher=Autos.msn.com |date=2010-02-22 |access-date=2010-08-15 |archive-url= https://web.archive.org/web/20110810210944/http://autos.msn.com/kbb/faq.aspx |archive-date=2011-08-10 |url-status=dead }}</ref>
There are various theories as to how the market determines the prices of used cars sold by private parties, especially relative to new cars. One theory suggests that new car dealers are able to put more effort into selling a car, and can therefore stimulate stronger demand. Another theory suggests that owners of problematic cars ("[[lemon (automobile)|lemons]]") are more likely to want to sell their cars than owners of perfectly functioning vehicles. Therefore, someone buying a used car bears a higher risk of buying a lemon, and the market price tends to adjust downwards to reflect that.
==Laws and regulations by region==
{{more citations needed section|date=December 2019}}
=== Air quality regulation ===
Countries around the world are starting to implement regulations around the import of used cars related to air quality control measures. However, most developing countries have insufficient regulation or no regulation at all when it comes to the control of [[emission standards]] for imported used vehicles.<ref name=":0">{{Cite web |title=Actions on Air Quality. A Global Summary of Policies and Programmes to Reduce Air Pollution |url=https://wedocs.unep.org/bitstream/handle/20.500.11822/36694/AAQ_GSP_PRAP.pdf |publisher=[[United Nations Environment Programme]]}}</ref>
===Africa===
There are some 54 African countries that set import age restrictions on used vehicle imports, while 27 African countries do not place any import restrictions on used vehicle imports, and just 5 African countries (Egypt, South Africa, Sudan, Morocco) ban all used vehicle imports.
* Mauritius, Seychelles, Algeria, and Chad set an age restriction of 3 years
* Gabon and Senegal set an age restriction of 4 years
* Libya, Mozambique, Niger, and Tunesia set an age restriction of 5 years
* Côte d'Ivoire sets an age restriction of 7 years
* Kenya, Mauritania, Namibia set an age restriction of 8 years
* Eritrea, Benin, Democratic Republic of Congo set an age restriction of 10 years
* Liberia, Nigeria and Eswatini set an age restriction of 12 years
Gambia, Ghana, Mali, Côte d'Ivoire, and Cape Verde have also implemented punitive taxation for vehicles beyond a certain age. Algeria also has an internal consumption tax and Uganda has an environmental tax.<ref name="unece2017"/> Zambia and South Africa also have an inspection test requirement as a precondition to vehicle registration on vehicle imports.<ref name="unece2017"/>
The vast majority of vehicles imported to Africa do not meet emission standards.<ref name=":0" />
====Asia====
=====China=====
{{main|Chinese used vehicle exporting}}
=====Japan=====
{{see also|Japanese used vehicle exporting}}
Japan has an inspection tests as a precondition to vehicle registration on vehicle imports<ref name="unece2017"/>
====Europe====
=====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.<ref>{{Cite web|title=Buying and leasing a car in another EU country|url=https://europa.eu/youreurope/citizens/vehicles/cars/buying-leasing-car-abroad/faq/index_en.htm|access-date=2020-12-27|website=Your Europe|language=en}}</ref>
====North America====
=====Canada=====
In Ontario, Canada, new and used vehicle sales are regulated by the [[Ontario Motor Vehicle Industry Council]] (OMVIC). In Alberta, Canada, new and used vehicle sales are regulated by the Alberta Motor Vehicle Industry Council (AMVIC).
[[Transport Canada]] mandates that all vehicles that are not made to comply with U.S. Federal Motor Vehicle Safety Standards are only eligible for importation if its age is 15 years old and above.
=====United States=====
{{see also|American used vehicle exporting}}
Used vehicles usually must be 25 years or older to be imported, but that requirement can be waived if a [[Show or Display]] exemption is given. The exemption for Show or Display limits the mileage to 2,500 miles (4,023 Kilometers) a year, and only select cars are eligible for the exemption. Canadian-market vehicles can also be federalized under separate regulations.
There are no age limits for used car exporting. Used cars can be exported at any time regardless of age or condition.
====Central America====
Panama has a used vehicle import age restriction of 10 years, while Mexico has an age restriction of 5 years.<ref name="unece2017"/>
In the Caribbean, most countries have age restrictions on used vehicle imports.<ref name="unece2017"/>
====South America====
Bolivia, Paraguay, and Peru are the only countries in South America that allow used vehicle imports. Paraguay has a used vehicle age limit of 10 years, while Peru has it set to 5 years.<ref name="unece2017"/>
====Australia====
In the [[Australia]]n state of [[Queensland]], when the [[odometer]] reading is fewer than {{convert|160000|km}}, and the car was manufactured less than 10 years before the sale date, the warranty is three months or {{convert|5000|km}}, whichever happens first. If the odometer reading is {{convert|160000|km}} or more, or the car was manufactured 10 years or more before the sale date, there is no warranty. Also, motorcycles, caravans, and commercial vehicles do not have a warranty at all. A commercial vehicle is a car with nine seats or more, as well as a vehicle that is able to carry one ton of goods, unless it is a utility, which is a car designed to carry goods. For example, a Holden Commodore Utility or a Ford Falcon Utility. As these are cars that come with the back section being part of the car's body. Other vehicles that have an interchangeable back section are regarded as [[cab chassis]] and the back of the vehicle can be ordered from the factory or can be custom-built to suit the needs of the vehicle buyer. The same as a light truck can be ordered as a tip truck or a body truck
== See also ==
*[[Certified Pre-Owned]]
*[[Car supermarket]]
*[[Grey import vehicle]]
*[[Decrepit car]]
*[[Lemon (automobile)]]
==References==
{{reflist}}
==External links==
* [http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm Ontario Vehicle Information Package] offers Ontario vehicle registration history
* [http://www.sgi.sk.ca/vin/index.html Saskatchewan Damage Claims History Search] provides the status of the vehicle (if any) in Saskatchewan and its damage claims history in Saskatchewan since Jan. 1, 1998.
* [http://www.ftc.gov/ Federal Trade Commission]
* [https://www.nicb.org/theft_and_fraud_awareness/vincheck Vincheck] [[Vehicle Identification Number|VIN]] checking in the U.S.
* [http://www.fairtrading.qld.gov.au/statutory-warranty-used-vehicles.htm Rules about statutory warranties for selling used vehicles in Queensland: Department of Justice and Attorney-General]
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{{DEFAULTSORT:Used Car}}
[[Category:Car ownership]]
[[Category:Used car market]]