China is the largest auto market in the world, but for a long time, there are fewer secondhand car sales than new ones. Now the situation seems to change.
CCTV’s Ning Hong reported.
Secondhand cars beating out new cars in China’s booming marketChina is the largest auto market in the world, but for a long time, there are fewer secondhand car sales than new ones. Now the situation seems to change. CCTV’s Ning Hong reported.
Price is a major factor: a relatively new second-hand car is at least 15 percent cheaper than a new one. The frequency of people changing cars is rising, along with more financing solutions.
These cars are usually coming from developed regions to less developed regions.
“70 percent of sales involve loans. It is a fast developing market. It only requires having a job and steady income, and you will get a car loan in a day,” Shi Yueguang, a loan broker from Hebei Province said.
The market for second-hand cars has huge potential in China and is developing fast. However, there are still barriers that are restraining the development, and that is what policy makers are trying to change.
In March, the State Council released new guide lines to promote the second-hand car market, cancelling barriers on cross region sales. However, for many regions, trans-regional sales only apply to cars that meet the new emission standard, which means the cars made in 2016.
“China’s second-hand car sales will reach ten million this year. Yet it is still less than new car sales. In developed countries, second-hand car sale could be four to six times more than new car sales,” Bi Shengkui, chairman of Hebei second-hand car association said.
Many regions fear allowing second-hand cars to flow in could bring more pollution. As China is planning to fully implement new emission standards in 2017, it could be the key to unlocking the market.
Alysha Webb discusses China’s secondhand car market
CCTV America’s Rachelle Akuffo interviewed Alysha Webb, consultant and researcher of Managing Partner at Cross Pacific Partner, on China’s secondhand car market.