Restrictions to "relax" or reshape the second-hand car market

  Liu Jin

  A few days ago, the Ministry of Commerce gave specific suggestions on the expansion of new car consumption, the development of second-hand car consumption, the promotion of car renewal consumption, and the cultivation of the automotive aftermarket in the "Notice on the Work Guidelines for Promoting Auto Consumption in the Commercial Field and Some Local Experiences and Practices". The policy of restricting the removal of used cars must be completely cancelled.

  Promulgating measures to promote automobile consumption alone reflects the importance of automobile consumption to a certain extent.

my country is already a big country in automobile production and consumption. In 2020, automobile sales will continue to rank first in the world, and its share in the global automobile market will rise to 32%.

In the big plate of consumption in my country, automobile consumption accounts for more than one-tenth of the total retail sales of consumer goods in the entire society, and accounts for more than 4% of GDP. It has become the "pillar" of the consumer market.

  However, some cities have previously set stricter restrictions on the purchase of cars and the circulation of second-hand cars in order to alleviate traffic congestion and reduce pollution emissions.

Due to the restricted relocation regulations, the development speed of my country's second-hand car market has been significantly suppressed. In 2019, my country's new car transaction volume was 1.5 times that of the United States, but the second-hand car transaction volume was only one third of that of the United States.

  Although it has not yet "let go", the important position of second-hand cars in my country's automobile circulation system cannot be ignored.

From the perspective of transaction volume, data from the China Automobile Dealers Association shows that my country's second-hand car transaction volume will be 14.34 million in 2020, and the compound growth rate of second-hand car transaction volume will be 22% during the 20 years from 2000 to 2020.

Unlike the cyclical fluctuations in new car sales, second-hand car sales have always been in a growth period of steady growth.

  Judging from the prosperity and development of the second-hand car market in some countries in the world, the second-hand car market has long-term development value.

The huge car ownership has provided the soil for the continuous development of the second-hand car market, and because the cyclical fluctuations of second-hand cars are small, the gross profit margin is relatively high, and the proportion of dealers' main business is gradually increasing.

In comparison, the growth of my country's second-hand car market has just begun.

With the continuous increase in the number of domestic vehicles, the automotive industry has transformed from an incremental market to a stock market, and the aftermarket industries such as second-hand cars will usher in huge development opportunities.

  It can be said that the complete abolition of the restrictions on the removal of second-hand cars with local protection will help to form a unified, standardized and efficient second-hand car market order across the country, which is conducive to the development of automobile circulation throughout the chain and better meets the people. Consumer demand for automobiles.

At the same time, this is expected to drive the development of service industries such as auto parts, maintenance, and insurance, and further promote the continuous optimization of the structure of my country's auto market to achieve high-quality development.

  There are reasons to believe that with the complete abolition of the used car restriction policy, the second-hand car industry will usher in new changes.

With reliable inspection and guarantee service capabilities, 4S stores (auto dealers) and used car Internet e-commerce will gradually occupy more shares in the market.

With the continuous expansion of the second-hand car market, laws and regulations protecting the rights and interests of second-hand car consumers, and second-hand car certification systems will also be gradually improved. There will also be many professional service companies that provide consumers and dealers with car condition information guarantee, insurance, and evaluation. And other services.

It is foreseeable that my country's second-hand car market will continue to mature and improve on the basis of huge car ownership.