Ever wondered where all those used cars from America end up? It might surprise you to learn that there’s a bustling global trade of used vehicles. The United States is a major exporter, and the destinations might not be what you expect. Today, we’re diving into the top countries that import used cars from the U.S., and the number one spot is a real head-turner.
In a recent video, We tried to guess the top countries importing used cars from the US, and you can watch them make their guesses on the RANKD episode. They use data to rank different topics, and in this episode they take on used car imports. What countries do you think they guessed? You may be surprised by the actual list!
Why Used Car Exports Matter
The export of used cars has a significant impact that goes beyond just moving vehicles from one place to another.
Economic Impact: The used car market helps the US economy. The industry creates jobs in transportation, repair, and sales. Exporting these cars brings revenue into the country. If you’re interested, you can check out this article discussing the economic impact of used car exports to learn more.
Affordability: In many countries, brand-new cars are simply out of reach for the average person. Used cars offer a much more affordable way for people to own a vehicle. This increased accessibility allows people to commute to work, transport goods, and improve their overall quality of life.
Environmental Considerations: While it might seem counterintuitive, exporting used cars can have environmental benefits. Instead of being scrapped, these vehicles can continue to provide transportation in countries where resources are limited. Of course, there are also environmental concerns about older vehicles, but they offer a viable alternative to no transportation at all.
How the List Was Determined
This list of top importing countries is based on data from Statista, a leading provider of market and consumer data. Statista collects and analyzes data from various sources to provide insights into global markets. The data in this list is from 2018, reflecting an annual volume of hundreds of thousands of used cars exported from the United States. You can often find more information on Statista’s methodology page.
Our Initial Thoughts
We started with some educated guesses, and had some pretty funny ones.
Nigeria: They were very confident that Nigeria would be on the list, and they were right! But was it in the spot they expected?
African Countries: Both hosts expected that multiple African countries would be near the top of the list. They knew that used cars were very popular in the continent, but did the data back that up?
Other Guesses: They threw out a bunch of other countries like India, China, France, Australia, Canada, the UK, and Germany. None of these countries made the list.
Traps: They briefly considered European countries, but quickly realized that the right-hand drive requirement in many European nations would make importing left-hand drive cars from the US impractical.
8. Ukraine
Here’s where things start to get interesting. Ukraine comes in at number eight, which might be a surprise considering its location in Europe.
Education Connection: There’s a significant number of Nigerians who go to Ukraine for education, which may play a role in the demand for used cars. These students and their families might seek affordable transportation options.
Demand Factors: Ukraine’s economy has faced challenges in recent years, making used cars a more accessible option for many people. The availability of relatively inexpensive American vehicles can be appealing.
Geographical Misconceptions: There was a funny moment when one of the hosts briefly forgot that Ukraine is indeed in Europe, but it’s a good reminder that geography can be tricky! Ukraine is located in Eastern Europe, bordering Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova.
7. Cambodia
Demand Factors: Cambodia is a developing country where affordability is a major factor in purchasing decisions. Used cars from the US offer a cost-effective way for people to own a vehicle. Additionally, the availability of spare parts and mechanics familiar with American cars can contribute to their popularity.
Sourcing: Cambodian consumers can source cars from US auction houses.
Economic: Cambodia has a GDP of around $27 billion.
Population: Cambodia has a population of approximately 17 million people.
6. Dominican Republic (DR)
The Dominican Republic is the first South American country to appear on the list, landing at number six.
South American Connection: This shows that the demand for used cars from the US extends beyond Africa and into the Americas.
Demand Factors: Like many countries on this list, affordability is a key driver. The Dominican Republic has a growing economy, but many people still find used cars to be the most accessible option.
Geographical Location: The Dominican Republic’s proximity to the United States makes it easier and more affordable to import vehicles.
GDP: The Dominican Republic has a GDP of around $113 billion.
Population: The Dominican Republic has a population of approximately 11 million people.
5. Jordan
Jordan marks the entry of the Middle East onto the list, coming in at number five.
Middle Eastern Presence: This highlights the diverse range of countries that rely on used car imports from the US.
Surprise Factor: Some might be surprised to see Jordan on the list, but there are some good reasons.
Conflict Zones: Jordan is in a region with conflict zones, which increases the need for affordable transportation.
Undocumented Imports: It’s possible that the actual number of used car imports into Jordan is even higher than reported due to undocumented or informal trade.
Location: Jordan is located at the crossroads of Africa, Europe and Asia, making it a hotbed for trade.
Wars in the Middle East: The many wars and conflicts in the Middle East have made Jordan a safe haven for many.
4. Mexico
Mexico’s high ranking at number four might not be a huge surprise, given its close proximity to the United States.
Proximity Advantage: The shared border between the US and Mexico makes it easy and relatively inexpensive to transport vehicles.
Demand Factors: Mexico has a large population and a growing economy, but many people still prefer used cars due to their affordability. Plus, many Mexicans cross the border to work in the US and need a car to drive back home.
Cross-Border Trade: There’s a well-established cross-border trade of used vehicles between the two countries.
Size: Mexico is a large country with a population of over 128 million people.
GDP: Mexico’s GDP is around $1.4 trillion.
Border: The US shares a border with Mexico.
3. Georgia
Georgia takes the number three spot, which might cause some geographical confusion.
Geographical Confusion: It’s important to clarify that we’re talking about the country of Georgia, located in the Caucasus region, not the US state.
Transportation Hub: Georgia has become a major transportation hub, connecting Europe and Asia.
Re-Export: A significant number of used cars imported into Georgia are then re-exported to other countries in the region.
Population: Georgia has a population of approximately 3.7 million people.
Location: Georgia is located between Europe and Asia.
2. Nigeria
Nigeria is the highest-ranking African country with most car imports on the list, coming in at number two.
Africa’s Presence: This underscores the importance of used car imports for many African nations.
Surprise Ranking: Some might be surprised to see Nigeria so high on the list, but there are some compelling reasons.
Affordability: Affordability is a major driver of demand. The average income in Nigeria is low, making used cars the only viable option for most people.
Economic Factors: Nigeria’s economy faces significant challenges, and access to affordable transportation is essential for economic activity.
Environmental Concerns: While used cars provide affordable transportation, there are also environmental concerns associated with importing older vehicles. These vehicles may not meet the same emission standards as newer cars, contributing to air pollution. There’s more information available in this article discussing the environmental impact of used car imports in Africa.
Population: Nigeria has a population of over 25 million people.
GDP: Nigeria has a GDP of around $14 billion.
Location: Nigeria is located in West Africa.
1. United Arab Emirates (UAE)
And now, for the big reveal! The number one country importing used cars from the USA is the United Arab Emirates (UAE).
The Big Reveal: This might be a shocker, considering the UAE is known for its wealth and luxury cars.
Dubai’s Role: Dubai is a major trading hub, and this plays a significant role in the used car market.
Re-Export Market: The UAE serves as a re-export market, with used cars being imported and then sold to other countries in the Middle East, Africa, and Asia.
Luxury Vehicles: There’s also a demand for used luxury vehicles in the UAE, as they offer a more affordable way to own a high-end car.
Mileage Factor: Used cars with relatively low mileage are particularly attractive to buyers in the UAE.
Boys Boys: The hosts in the video mention “boys boys,” which refers to young people who have made a lot of money and are looking to buy cars.
Geography: The UAE is located in the Middle East on the Persian Gulf.
GDP: The UAE has a GDP of over $500 billion.
Population: The UAE has a population of around 10 million people.
Annual Import Numbers Compared
To put these numbers in perspective, let’s compare the annual import volumes of Nigeria and the UAE. In 2018, Nigeria imported approximately 82,000 used cars from the US, while the UAE imported around 129,000. This difference highlights the scale of the UAE’s used car market. It would be helpful to see a bar graph comparing the import numbers of all eight countries to understand their relative positions. Visualizing data is so helpful!
The economies of these two countries are very different, which is why this is surprising.
Factors Influencing Used Car Imports
Several factors influence the demand for used car imports in different countries.
Economic Conditions: The economic conditions in importing countries are a major factor. Countries with lower average incomes are more likely to rely on used cars as an affordable transportation option.
Regulations: Import regulations and tariffs can also play a significant role. High tariffs can make used cars less attractive, while favorable regulations can encourage imports.
Vehicle Standards: Vehicle standards and emission requirements can also affect the used car market. Some countries have strict standards that older vehicles may not meet, limiting their import.
Consumer Preferences: Consumer preferences also play a role. In some countries, there may be a preference for certain types of vehicles, such as SUVs or trucks, which can influence import patterns.
International Trade: Trade agreements can make a huge difference in trade.
The Future of Used Car Exports
The used car market is constantly changing.
Emerging Markets: New markets will emerge for used car exports.
Technological Changes: The rise of electric vehicles could impact the used car market. As EVs become more affordable, they could potentially displace some demand for traditional used cars.
Sustainability: There is growing interest in sustainability, which could lead to changes in the used car market.
Trends: The trends could go up or down in the future, it’s hard to tell.
Laws: Future laws can change the market in a variety of ways.
Conclusion
So, there you have it: the top eight countries importing used cars from the USA. From Ukraine to the UAE, the list is full of surprises. Who would have guessed that the United Arab Emirates would be number one? The global trade in used cars is a fascinating and complex market, shaped by economic conditions, regulations, and consumer preferences.
Be sure to watch the YouTube video for a more in-depth discussion and analysis of these trends. What are your thoughts on this list? Were there any surprises? Let us know in the comments below!
