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Market sizing : number of used cars sold per year in country X

Anonymous A asked on Jul 23, 2019 - 1 answer

Just want to check if my approach is mathematically/logically correct:

1-Find total number of cars in country X (for example: number of households * # of cars per household)

2-number of new car purchases each year is : (1) /service life (10 years for example)

3-number of cars that are disposed due to end of service life or accident.

4- ( 1 - (2+3)) will give us total number of used cars.

5- divide (4) by service life, lets say 5 years since used (won't last as much so less than 10 years). to get number of used cars sold per year in country X

Assumption : no growth in market

Thanks in advance

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Vlad replied on Jul 24, 2019
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Hi,

You should just make an assumption of how frequently the used car is sold during the lifetime based on your personal experience. Sales will equal The Total number of used cars * # of times it's sold per lifetime / lifetime

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Great, I will add it.But, is my logic correct ? — Marc on Jul 24, 2019

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