From Linear to Circular: Leveraging Digital Technologies to Transform the Used Car Retail Value Chain

Circular economy (CE) principles have a lot of potential to improve sustainability in the Second-Hand (SHA) retail industry. This study looks at how digital tools like blockchain, AI, and online platforms can improve operational effectiveness, transparency, and environmental performance while addressing important issues in the SHA value chain. A systematic literature review, a consumer survey (n = 212), and 12 semi-structured stakeholder interviews were all part of the mixed-methods approach. Five main consumer barriers are identified by the findings: pricing opacity, digital inexperience, inconvenience, trust deficits, and worries about the cleanliness and condition of the vehicle. Convenience as well as scalability have been effectively increased by digital innovations such as blockchain-enabled ownership records, customer education tools, AI-based pricing along with virtual inspections. But difficulties with transparency as well as trust still exist, mainly in the valuation procedures along with documentation. According to the study, start-ups that use CE concepts, like Vehicle-as-a-Service (VaaS), predictive diagnostics as well as refurbishment models, are more flexible in meeting sustainability goals than traditional dealerships. Digital interventions' alignment with sustainability pillars in ownership transfer, sourcing, purchase as well as marketing is demonstrated by a value chain mapping. This study adds to the expanding body of knowledge on the CE–Industry 4.0 nexus in the context of used car retailing and offers industry stakeholders practical insights.