In the first half of the year, the second-hand car trade volume in Guangdong increased by nearly 20% compared with the same period last year.

“More than 600,000 Lexus can only sell 70,000 yuan, and more than 400,000 Audi A6 can only sell 50,000…” Restricted by the “limited relocation” policy of used cars, the problem of rapid depreciation of used cars, which has long plagued the owners, will soon be solved.
On August 27, the General Office of the State Council issued opinions on accelerating the development of circulation and promoting commercial consumption. The opinions pointed out that the policy of abolishing the restriction on second-hand vehicles should be further implemented, and that the key areas of air pollution prevention and control should allow second-hand vehicles meeting the emission standards of in-use vehicles to be traded and circulated in the province (city). In this regard, industry insiders said that this policy is expected to make used car transactions, especially in Guangdong Province, usher in explosive growth.
In fact, in some developed countries, the purchasing group of used cars is far more than that of new cars, while our country is still in the stage of car popularization, and the trading volume of used cars is far lower than that of new cars. Additionally, there were many restrictions on second-hand cars with different standards before, which limited the growth of second-hand car trading volume.
In recent years, many places in China have liberalized the restrictions on second-hand car relocation. In mid-2016, Guangdong Province also issued the Notice on Promoting the Implementation Scheme of Second-hand Car Facilitation Trading, canceling the policy of restricting second-hand car relocation in 12 cities in eastern, western and Northern Guangdong. However, nine cities in the Pearl River Delta (Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zhaoqing, Zhaoqing, etc.) Huizhou, Dongguan and Zhongshan, as relevant vehicles encouraged and required to be eliminated by the state and key areas for air pollution prevention and control specified by the state, continue to implement the policy of restricting the immigration of used vehicles.
Nevertheless, in the first half of this year, the volume of used car trade in Guangdong Province increased significantly. According to the cumulative statistics of more than 200 used vehicle circulation enterprises reported by Guangdong Automobile Circulation Association, combined with the comprehensive data of the retail sales volume of motor vehicles and the number of second-hand vehicle transfers in key areas of the province, the second-hand vehicle trading volume in Guangdong Province in the first half of 2019 was 1088,000, up 17.2% from the same period last year. The amount was 65.87 billion yuan, an increase of 26% over the same period last year, ranking first in the country.
Sun Jie, Special Assistant to COO and Vice President of Used Vehicle Business Department of Dasoche, said at the Guangdong Media Communication Meeting held on the 28th of Dasoche’s Choice, that Guangdong consumers’acceptance of used vehicle consumption is the highest in the whole country, which also shows that Guangdong consumers are more open and inclusive.
“The whole Pearl River Delta used-car trade accounts for 80% of the total in the province. If the Pearl River Delta can really lift the restriction on relocation, the annual turnover of Guangdong will double.” The person in charge of Guangzhou used car market disclosed that in the past two months, the sales of Guowu used cars in the Pearl River Delta have increased by more than 20% since they could be relocated to each other. It is understood that with the implementation of the Sixth National Emission Policy in Guangdong in advance in 2019, the relevant government departments have given a four-year buffer period for 252 hand-held vehicles, that is, June 30, 2023. The five emission standard light vehicles in the Pearl River Delta region can be relocated to each other.
However, it should be noted that although consumers’perception of used cars has improved in recent years, the fundamental problems of the industry have not been solved, the lack of trust between consumers and car dealers, and the opacity of information are still the pain points of the industry. Sun Jie said that in order to reassure consumers to buy cars, family selection has strict control over the quality of vehicles, no fire, no blister, no accident vehicles, in accordance with national standards for vehicle quality certification. In terms of after-sales, Home Selection launched a 100-day no-worry, one year or 30,000 kilometers of quality assurance services.


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