Promising used-car market

More than 83% car-owners want to change their cars according to a questionnaire by media; about 33% car-owners would sell old cars in used-car market while 22% would exchange old cars for new ones compensating certain amount.

57.7% correspondents wanted a superior vehicle. For 27.73% car-owners, the reason of changing was old car did not meet the need and 21% car-owners planned to own SUV or MPV, which proved the trend of diversifying market.

European brands are preferred mostly by consumers. More than 57% correspondents planned to own a European vehicle as second choice. American brands, which impressed consumer high oil consumption, are preferred least only accounting for 4%. The expectation of oil price up contributes to this result.

67% correspondents own one car and most of them have been running for 2-3 years. Mr. Luo lei of Beijing vehicle circulation Association said: “ 30% used-car in sale or for exchange are less than 3 years life, between 5 and 6 years are 60% and more than 10 years are 5.38%”. It is expected that the price of used-car this year will be increased largely because of improved quality.

The volume of used-car deals is 392,000 units in Beijing last year with the increase of 12% compared with 2005, less than national average growth level of 25%. The dealers will focus on present car-owners as potential consumers.

According to the statistics of Beijing used-car market, 10% of present cars are potential cars for exchange and a rush of exchange will appear this year.