China News Agency, Shanghai, June 28 (Reporter Chen Jing) The Ministry of Commerce promotes the removal of unreasonable restrictions on the transaction of second-hand cars, and further promotes the national circulation of second-hand cars.

This means that the cross-regional circulation of second-hand cars will enter the "fast lane".

  Zhang Yanwei, chief operating officer of China's second-hand car auction platform-Tiantian Paiche, told reporters on the 28th that convenient second-hand car transactions and the promotion of cross-regional circulation of second-hand cars are the general trend of the development of the automobile market.

  He pointed out that second-hand car auctions solve the problem of car sellers' identification of vehicle value; shorten the vehicle transaction cycle and achieve high transaction efficiency.

Second-hand auctions also solve the problem of large-scale acquisition of car sources by second-hand car dealers.

  According to data from the China Automobile Association, in 2020, China's second-hand car transaction volume reached 14.34 million, of which cross-regional second-hand car transactions accounted for only 27.5% of the total second-hand car transaction volume, less than 30%.

This means that the domestic second-hand car market has huge potential, and there is still a lot of room for development in cross-regional circulation of second-hand cars.

  According to data provided by the Big Data Research Institute of Daily Auctions, the proportion of cross-regional transactions on the used car auction platform has exceeded 70%.

The total turnover in 2020 has exceeded RMB 20 billion.

In Zhang Yanwei's view, China's second-hand car auction platform may usher in the development trend.

  Zhang Yanwei told reporters that looking at the international second-hand car market, second-hand car auctions have become the most mainstream and largest-scale second-hand car circulation method.

Whether it is Manhan, Copart, KAR in the United States, or USS in Japan, the transaction scale occupies more than 40% of the local market share.

He bluntly said that compared with the industry giants in Europe and the United States, domestic used car auction platforms have greater development potential.

  Zhang Yanwei believes that China sits on the world's largest single car stock market, and the second-hand car business has greater potential for growth.

Since the beginning of this year, on the basis of promoting the comprehensive cancellation of second-hand car transfer restrictions in major cities in China, 20 domestic cities have started to implement cross-provincial registration of second-hand car transactions on a trial basis from June to solve the problem of remote locations.

  In the view of this industry insider, the implementation of favorable policies such as "cross-provincial administration" is of great significance for stimulating the consumption potential of the stock market and further promoting the national circulation of second-hand cars. Domestic second-hand car auction platforms are promising.

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