Low-emission cars boost 2nd-hand auto market
- Source: cctv.com
- [11:01 July 14 2009]
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Summer is usually a slow season for the used car market in China. But this year, sales for low-emission used cars seems to be chugging right along and prices for such cars are increasing, while high-emission cars are selling slowly.
In the largest used vehicle market in Beijing, consumers say prices of low-emission cars are rising as the price of oil goes up.
One car buyer said, "Most people buy used cars for financial reasons. I think low-emission used cars are more expensive this year by about 5,000 to 6,000 yuan."
Car dealers say the insufficient supply of low-emission used cars have pushed up prices.
One car dealer said, "Low-emission cars are short in supply this year. Sometimes we have difficulty getting them."
Because low-emission cars are popular, used car dealers are willing to cut their profits in order to sell more.
"We usually buy low-emission cars at high price and sell them at high price too," another car dealer said. "Even though our profit is small, we are willing to trade them because they sell fast."
Compared with low-emission cars, used high-emission cars priced at over 300,000 yuan are slow to leave car dealerships.
"Large high-emission cars require a lot of money," a dealer explained. "They may bring bigger profits, but they also bring greater risk. You can even lose money if they sit on your lot too long."
China has adopted various measures to boost the auto industry. The measures have also increased sales in the used car market. Despite the difference in low-emission and high-emission sales, the used car market driven by a booming business in low-emission cars, has grown by over 20 percent in the first five months of this year.
