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How can we estimate the market size of second hand cars
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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
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ex-Manager - Natural and challenging teacher - Taylor case solving, no framework
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Nice work. Although IMHO it should be the candidates doing it and us feedbacking it.