Since 2018, the auto market seems to have never stopped. From subsidies retreating, switching of National VI emission standards, to encountering the "black swan" of the epidemic, and then to the shortage of chip supply, the car market has been bumpy all the way, but it will always bring some surprises.
For example, in the environment of tight chip supply, the development of the second-hand car market has been spawned, and this year China's second-hand car market ushered in the "spring", so that many car companies and even consumers have seen the potential of the second-hand car market. So, how is the performance of China's used car market this year? Let's take a look.
The cumulative volume in the first 10 months exceeded that of the whole of last year, but for the first time in October, there was negative growth
According to statistics, the total transaction volume of China's second-hand car market from January to October this year reached 14.4232 million vehicles, an increase of 30.4% year-on-year, and the cumulative transaction volume in the first 10 months has exceeded 14.341 million vehicles in the whole of last year, which shows that the performance of the second-hand car market this year is very good.
If you take the transaction volume of 1.4564 million units in the used car market in October this year, it is slightly down, down 1.5% year-on-year, which is also the first year-on-year decline in used car trading volume this year.
From January to October, the highest transaction volume is September, which is because the supply of chips by many car companies is very tight in September, and some dealers have recycled some used cars because they do not have new cars, which has promoted some consumers to choose used cars. The lowest volume of trading was in February, with only 955,000 units, perhaps due to the reduction of working days due to the Spring Festival holiday. Overall, the potential of the second-hand car market is not small, and the annual transaction volume this year is also expected to exceed 16 million units.
From January to October, the transaction volume of second-hand cars accounted for more than 75%
Specific to the market segment, the car market transaction volume from January to October was 8.6941 million units, an increase of 31.8% year-on-year, accounting for 75.9% of the total transaction volume, which shows that most consumers in the second-hand car market will choose car trading.
The transaction volume of SUV used cars in the first 10 months of this year was 1.5921 million units, an increase of 51.6% year-on-year, which is the highest growth rate among all market segments, indicating that second-hand SUVs are also slowly being accepted by more consumers. But the transaction volume of second-hand SUVs is obviously a bit large compared with that of second-hand sedans.
In fact, the current sales of SUVs in the new car market and the sales of cars are not much different, but the transaction volume of the two in the second-hand car market is so disparate. On the one hand, because the total number of cars is much larger than that of SUVs, on the other hand, the development of the SUV market is later than the car market, and there are many SUV owners who have not yet changed their willingness.
As for the second-hand MPV market, the trading volume in the first 10 months of this year was 834,100 units, an increase of 29.6% year-on-year, and the performance was decent. It can be found that the transaction volume of the three major used car segments of the sedan, SUV and MPV markets from January to October this year has achieved year-on-year growth, which once again confirms the development potential of the second-hand car market. Since the volume of used car transactions is growing rapidly, what will happen to the transaction price?
The proportion of second-hand car transaction prices below 80,000 yuan is very large
According to the data, in October this year, the transaction price of second-hand cars was less than 30,000, accounting for 32.6%; the price was between 30,000 and 50,000, accounting for 22.9%; the price between 50,000 and 80,000, accounting for 16.3%. From the pie chart, it is not difficult to find that the transaction volume below 80,000 yuan accounts for a very large proportion, and the higher the price of the model, the less the transaction volume, indicating that most consumers currently accept the price of second-hand cars within 80,000 yuan.
It is worth mentioning that compared with the second-hand car trading price range in October last year, the price range of only 30,000-50,000 yuan, 150,000-300,000 yuan and more than 300,000 yuan in October this year, the transaction volume achieved a year-on-year increase, and the trading volume of other price ranges has declined slightly, but the overall volume is still rising.
Auto network review: The potential of the used car market should not be underestimated
Although the ratio of China's second-hand car trading volume to new car sales this year is 0.69:1, the ratio has also increased, but in general, in mature markets, the ratio is above 1.0. It can be seen that the current level of China's second-hand car market is still relatively low, of course, this also means that there is a lot of room for the development of China's second-hand car market.
Nowadays, there are also many policies that are good for the second-hand car market, such as the "Announcement on the VAT Policy on the Distribution of Used Cars" issued by the State Administration of Taxation of the Ministry of Finance in April last year, which clearly shows that the value-added tax on used cars has been reduced from 2% to 0.5%; for example, there are many systems to help the second-hand car market clear the barriers to cross-regional circulation of used cars this year. In addition, the "2020 China Gen Z Car Consumption Insight Report" shows that the purchase intention of Gen Z consumers to buy used cars is as high as 61%. All indications are predictable, the used car market is still increasing, we will wait and see.