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Used car business challenges trade market

chinadaily.com.cn | Updated: 2013-10-10 15:54

The China Automobile Dealers Association (CADA) recently released statistics stating that pre-owned car deals climbed 7.64 percent to 2,481,600 units during the first half?of this year, and the 22.39 percent of transactions totaled 138.1 billion yuan, up from the same period last year.

However, the Chinese used car market is facing a transformation, and should provide customer reassurance, according to CADA Deputy Secretary-General Luo Lei.

Luo said China does not have a comprehensive and systematic used car evaluation system. Currently, used cars are priced according to each dealer's individual evaluation, without applying any objective process or standard.

The lack of a used car after-sales service system is also having an influence on consumer confidence?within the used-car marketplace, causing a delay in proper development.

Jipinauto CEO Mike Liu agreed that used car auction is the major business of many trade platforms, and the market does not cover the C2C trade of pre-owned cars.

CADA estimated that the pre-owned car trade may hit 10 million units in 2015, and roar to a volume of more than 20 million by 2020.

New car purchases exceeded 10 million units in 2009, and Chinese car owners usually replace their cars within four to six years.

Luo said some dealers have made changes to provide customers with reassurance after purchasing used cars. Dealers now may sell used cars at an expressly marked price, extend warranties, and allow for vehicle return and replacement.

Expecting an up-coming trade volume boom, Mike said?Jipinauto.com?and its investing team?is devoting to develop C2B2C trade, and?look favorably of the Chinese used car market.

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