Auction of second-hand autos has huge market potential
- Source: Ce.cn
- [13:44 September 23 2009]
- Comments
Such a mode of auction, for example, antique auction or property auction, has existed in our life for a long time, and to which people have experienced from curiosity to acquaintance.
However, people still feel it a fangle if the subject is changed to be a second-hand auto. In fact, the second-hand auto auction is the most common mode for second-hand auto transaction in a mature market while it is not long in China. You may ask that how much a small auction hammer can do in the huge second-hand auto market.
It turns out that second-hand autos can also be auctioned.
"It is the auction that 'to upbear two sides with one hand'. It's on one side the second-hand auto source, on the other side the buyer." Li Bo, Business Manager of Beijing Zhonggu Auction Co., Ltd, believed that the auction course is not so complex like what lots of people imagined.
The second-hand auction can be simply divided into such two procedures as trusting autos and joining the competition for purchase.
A seller will entrust his/her auto to an auction company, and after understanding and evaluating the auto, the company will pre-exhibit the auto before official auction, showing the information about the auto manufacture date, base price and basic auto condition to the buyers, subsequently, the auto can be involved in the auction.
And after knowing fairly well about the auto condition in the pre-exhibition, buyers can take participate in the competition for purchase in the auction day and the one with the highest bidding price will win the auto.
"Such a transaction mode is relatively public and transparent, I can set my heart at rest when buying, and the procedure is also very simple." Mr. Shi who took participation in the auction for the first time and won a second-hand Benz expressed with good feeling.
Li Bo believed that the second-hand auto auction has its own advantage, which requires being open, fair and just; the auction company will not intentionally conceal the real auto information, meanwhile, such a transaction mode is very efficient, and the bargain price often appeals to both the seller and the buyer.
Auction companies play a role of wholesaler
Currently, the second-hand auto auction can only be considered in initial phase in China, lots of people feel unfamiliar to such a mode. But in a mature auto market, auction is the most common mode for second-hand auto transaction.
In the US, there exist 300-odd various second-hand auction companies, and about 40 percent of the transacted second-hand autos are disposed in the manner of auction annually. In Japan, large auction companies usually hold auctions for once to five times a week with 3,000 to 15,000 autos for each auction.
Auction is provided with obvious advantages, by the competition for purchase, a number of second-hand autos can be disposed collectively in the shortest time, and the benefit of clients can be maximized efficiently. "10-odd auction driveways are conducted at the same time, and 3,000 autos will be auctioned only within two hours.
Can you imagine how shocked when you see such a scene for the first time?"
Data shows that annual transaction volume of second-hand autos in the US is around 40 million sets, more than double of the sales volume of new auto, and a huge industrial chain has shaped in mature second-hand auto market.
