Not Disruption, Broom Describes the Chaos in the Used Car Buying and Selling Ecosystem

Measuring the used car market in Indonesia is very different from the new car industry. Unlike Gaikindo (Indonesian Association of Automotive Industries) which regularly releases car sales as a yardstick for many things, there is no official data that measures the size of the used car market share in the country.

However, startups playing in this segment, Broom, roughly estimate that this market is worth 3x to 4x the new car sales data. Referring to data from Gaikindo, new car sales in 2022 will exceed 1 million units. This means that the used car market is estimated to have sold up to 5 million units for the same period and is a lucrative prospect for Indonesians automotive players.

Broom also compiles data from various sources regarding dealer conditions in Indonesia. The results concluded that there are as many as 50 thousand dealers on average having 4-5 units of cars in the garage/parking area that they rent. Meanwhile, for sellers who are brokers, selling cars because they get information from other parties, it is estimated that the figure can double to around 100 thousand dealers.