How can we estimate the market size of second hand cars

Hi,

1. Number of cars out there

•  start with population
• segment by age to identify drivers
• assumme an avergae # car / driver (should be <1 !)

2. Number second hand cars

• Assume a share of total fleet that create a turnover due new cars purchase, and old cars destruction
• Substract this to total number of cars calculated in 1.

3. Number of transaction for second hand cars

• Assume an average duration of holding a car (5 years ?)
• divide the number Calculated in 2 by this 5 years

4. Market of second hand cars

• Assume an average value per transaction on second hand market (15 000 $ ?)
• Multiply this 15 000$ by the number of transaction calculated in 3.

Hope this helps

Best
Benjamin