Prospects Of Used Cars Are Good

In China, the second-hand car market has highlighted the following characteristics, the more economically developed regions, the greater the amount of second-hand car trade. According to statistics, in 2006 in economically developed areas, the trading volumes of second-hand cars are the most.

The top 10 areas of the country are Beijing, Guangdong, Shanghai, Zhejiang, Shandong, Yunnan, Henan, Chongqing, Xinjiang and Fujian. Among them, Beijing is 322000 sets, an increase of 57%; Guangdong is 307 300 sets, an increase of 90.12%; Shanghai is 222300 sets, an increase of 34.28%. In our second-hand car market, the private sale is the majority. According to statistics, in 2006 the country's trading volume of used private cars used cars accounted for 70.97% of the total volume.

The current used car market in China has a series of new changes. The most notable change is the emergence of the shift of second-hand car business entities from single mode to diversified model. After a period of trying, driven and organized by some strong and qualified car supplier, a group of car dealers have tried used car business and began large-scale operation in brand, franchise, after- sale service and other higher-levels. A second-hand car market has been formed. The linkage effect of the second-hand car market and the new car market should be more obvious. The two markets should further enhance the interaction.

In recent years, China's car replacement for the old and new car business has brought vigor and vitality to the automotive market. It does not only promote new car sales, but also offers a wealth of business resources for the expansion of second-hand car market.

At the same time, the brand used car business has made important progress. Major domestic automobile manufacturers have entered the field of second-hand car and carried out the business. For example, in the August of 2004, 13 cities' 16 dealers became the first car model shops. In September 2004, FAW-Volkswagen in Beijing, Shanghai and Guangzhou officially launched the Audi "3A used car" business. In August 2004, Shanghai Volkswagen's 50 dealers began the "selected used car" business. In April 2005, Guangzhou Honda began car replacement business in Beijing, Shanghai, Guangzhou and other cities.

Although our second-hand car market has a long-term development, but compared to the developed countries' second-hand car market, China's second-hand car market still lagged behind in terms of business philosophy, business methods or business management. Analysts say that the used car market will develop very fast in the future.