Beijing: second-hand car dealing will outpace new car

In 2006, 322,000 vehicles in the used-car transactions caused widespread concern.  Compared with 5% growth of new vehicle sales, the second-hand vehicles dealing increased 57% to 2005, which means a new stage of development of second-hand vehicles business. As the current growth rate of the used-vehicle deal, used vehicles dealing will exceed the new vehicles sales this year, reaching a record of 370,000 vehicles.

According to a quarterly statistics, that second-hand cars dealing in October 2006, the total transaction volume has exceeded new car sales. There used to be three consumption levels of second-hand cars in Beijing, first level is consumption below 80,000 Yuan. 60% of these second-hand cars, sold outside Beijing market, mainly in the form of transfer of personal or commercial operation; Second, the medium-grade second-hand car over 80,000 Yuan with better serve conditions, and the main consumer is from Beijing. Those vehicle are mainly from the brokerage firms or 4S shops; Third, second-hand luxury car with 200,000 Yuan, Trading of those car basically are controlled by some big brokers. As the standardization of the second-hand car trading policy, the growth of second-hand vehicles in 2007, will be mainly based on the medium & high-grade.

China Automobile Association survey shows, the record of brand dealers are almost 15,000 in nation, among which 40% dealers have had their sector for the used-car. Almost 15% to 20% of the dealers have started a second-hand car business. The proportion is higher in Beijing.

The Joint Session of the National Passenger Cars survey shows, 76.03% consumers have purchased and plan to buy a second-hand car.