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Domestic second hand car market keeps growing

  • Source: CE.cn
  • [08:31 April 19 2010]
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Once the standards on evaluating second-hand autos are issued, when purchasing autos from a second-hand trade company, consumers will not only sign normal contracts to nail down responsibilities but also get the instruction book about the second-hand auto issued by the company.

When getting the appraisal results, consumers will immediately understand the situation of the second-hand auto. If consumers have objection on the appraisal results, they can find an independent third party, an evaluation institute for appraisal, and get and appraisal report with force adeffect developed in accordance with a normal flow.

Industrial experts believe that this is not only propitious to normalize market behaviors and promote the credit construction in second-hand auto appraisal industry, but also protect consumers' benefit better.

Luo Lei expressed that, "Currently, besides the standards on evaluating second-hand autos, the association is also researching those package policies and measures helping to promote the sound development of the second-hand market, such as the reform of circulation tax on second-hand autos and the access system on business main bodies."

It can be forecasted that with the rapid accumulation of China's auto population and the increasingly improvement of policy environment and market circumstance, the second-hand auto market will embrace another rapid development period soon.

Luo Lei believes that in 2010, China's second-hand auto market will still remain a robust momentum with the predicted increase rate about 20 percent.

Presently, in China's overall auto markets, the second-hand auto market is a field having not yet been developed completely, which still has a great space for development.

"China's second-hand auto market has been provided with a certain scale. In 2009, the sales volume of second-hand autos involved in statistic exceeded 3.3 million sets while the actual transaction volume was around 4 million sets."

Compared with the new auto sales volume of 13.6 million sets, it has not reached the one third, and such a proportion has always kept wandering around in recently years." Luo Lei expressed that, compared with the situation that the sales volume of second-hand autos in mature auto market is more than that of new autos, China's second-hand auto market still has great potential for development.

Additionally, with the increasingly development of the market, the second-hand auto market is transferring from single business to diversified business, from the transaction manner in the form of country fair to the modern circulation system of multi-tier and three-dimensional second-hand auto market.

Besides the traditional second-hand auto transaction market, the professional second-hand auto distributers, brand distributers, large auction markets and those professional service agencies involved in second-hand auto transaction, such as evaluation institutions on second-hand autos, information service agencies on second-hand autos and professional consulting institutions, are emerging silently in the whole country and will become the new force in the second-hand auto market.

Such a competition pattern in the second-hand auto market that takes second-hand auto transaction market as the core, second-hand auto distribution enterprises (including new auto franchised stores) as main bodies, second-hand auto auction enterprises and second-hand auto brokage enterprises as core force, is gradually establishing, and such an operation mode on second-hand autos that combines distribution, auction, brokage and direct transaction is shaping up.

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