Online Bidding to Boost 2hand Auto Market

By the end of August 2009, China’s possessing capacity of vehicles has reached 180 million, of which 71.8569 million units are cars. Retaining such a huge amount of base is helpful to lay a solid foundation for the fast development of second-hand car market. Auto replacement is expected to further increase the proportion of consumption in 2010, and second-car car trading volume growth is expected to reach 18%. According to the statistics released by China Automobile Dealers Association, from January to October the second-car trading volume has been up to 2.6953 million, increased by 29.37%, while the cumulative volume reaching 118.926 billion yuan with an increase of 33.7%. All the trading volume in 2009 will exceed 3.3 million, according to the China Economic Times.

However, monthly turnover of the chain in October and November has declined. Data shows that second-hand car trading volume in October is 312.4 thousand with a decline of 3.37%, while that of November declined by as much as 21%. The main root cause is that by the end of the year car consumption showed a growth spurt, especially the time before. Whether the purchase tax will be continued next year is not hopeful, which contributed to the hot car consumption, especially the cars with 1.6L engine, weakening second-hand car market in a certain extent. After the purchase of tax policy is defined on December 17, the market will be in equilibrium, but the situation will continue selling new cars. New cars and used car are both expected to maintain rapid growth in 2010.

At present, in addition to 4S store replacement, second-hand car trading and car market concentration outside the store on-side auction, second hand car trading embraced a kind of new model which is worth being paid attention to, that is second-hand car online auction platform. 51 Car and China vehicle inspection center joined hands to build a second-hand car trading platform, which is one of the representatives of the platform. The outstanding features of the model are, first, online visual display prototype vehicle for consumers to save time and energy. Second, online offer and bidding is transparent. Third, China’s vehicle inspection centers’ involvement helps to improve the authoritative identification of second-hand cars, and consumer transaction and after-sales related issues are also more secure.

The biggest constraint of second-hand car market is the pricing confusion, random identification (many rely on visual and rule of thumb), resulting a host of car bug who cheat consumers in the markets. 51 Car is precisely such a model we should strive to avoid shot board, its business development is accelerating. The country’s largest second-hand car market Beijing second-hand car market is currently filming vehicles which are more than 1,500 reference units and 200 turnovers. 51 Car’s monthly network bid has reached over300 reference units, closing more than 50 vehicles.

Reporters made a practical survey of second-hand car market in Majia Bridge. Chief engineer of the China’s vehicle inspection center of assessment of used car, Tai Qihua resolved the 51 Car the entire process of second-hand car trading.

Qin Qihua said that 51Car themselves neither accept cars nor selling cars, but to build an information release and trading platform for consumers. It is the China’s used car appraisal assessment center get involved in the assessment and offer a presentation of assessment report. The whole process as follows: Car owners call the hotline of 51 car→information is collected to the operating divisions→detection of members of the preparation testing program after the testing program to get contact with the owners door→inspectors to detect and verify relevant information→transimitted to the online auction platform→bidding process calls for communicating with the owners and distributors→an appointment for vehicle inspection center before closing meeting with buyers and sellers to look at cars→payment→power of attorney signed a deal to help transfer→arching of all files.

Reporter obtained a singled vehicle inspection showed that test item, including the date of manufacture, mileage, configuration, interior, wear, etc. Vehicle inspection center has advanced second-hand car test line, but in general transaction does not spend full vehicle inspection center testing equipment. Vehicle inspection reports should be fair, clear and practical as far as possible.

In this trading platform, whether individuals or used car dealers can be allowed to get their vehicles to participate in trade shows and conduct bidding with the principle of who gains who offers high. Part of cars owners and consumers expressed that it is convenient and fast and they feel safe for the participation of China’s inspection center of used cars.

It is can be expected that the online auction will become a major trade model of the second-hand car trade, and will enjoy a further growth together with the prosperity of second-hand car market.( Translator: Qinghua/ Sailor)

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