China's second-hand car trade is on the rise.
In recent years, China's second-hand car trading has been active. The trading volume of second-hand cars in China has continued to grow for 18 consecutive years, from 370,000 to 14.923 million in 2019. However, due to the epidemic situation in 2020, China's second-hand car trading volume declined for the first time. According to the statistics released by the China Passenger Car Market Information Federation, China completed a total of 14.34 million second-hand cars in 2020, a cumulative decrease of 3.91% year on year. In the first half of 2021, China completed a total of 8.4342 million second-hand cars, a year-on-year increase of 52.89%; Even in the low sales season of the automobile industry in June, the trading volume of second-hand cars still increased by 4.43% month on month.
The loosening of the restrictions on the relocation of second-hand cars in China is conducive to the development of the second-hand car market
Restricting the migration of vehicles also curbs the vitality of second-hand car consumption. In 2018, the government work report clearly called for the complete cancellation of the second-hand car relocation restriction policy, which was later reiterated through a number of documents. Various regions have responded in succession, and the national unified market of second-hand cars has gradually taken shape.
At the beginning of 2020, due to the double impact of holidays and epidemic, the rate of second-hand car transfer in February was the lowest, only 14.86%. With the improvement of epidemic prevention and control and the continuous promotion of resumption of production, cross regional circulation has shown a slow growth trend since the second quarter. July to December has been better than the same period in 2019 for six consecutive months. In December, the transfer rate of second-hand cars was 28.88%, a new high in the year. The transfer rate increased by 3.77 percentage points compared with the same period in 2019. In 2020, the total number of second-hand cars transferred to China was 3.938 million, representing 27.46%, a decrease of 0.41 percentage points compared with the same period in 2019.
The financial penetration of second-hand cars in China is lower than that in the United States, reflecting the large growth space in China
In the context of consumption upgrading, second-hand car transactions are growing at a high speed, and second-hand car finance is also poised to fly. By comparing the financial penetration rate of second-hand cars (loan orders/total car sales) between China and the United States in 2019, it can be seen that the financial penetration rate of second-hand cars in China is far lower than that in developed countries. The penetration rate in China is only 29%, while that in the United States was 54% in 2015.
Note: Used car financial penetration=number of loan orders/total used car sales
China's second-hand car finance has begun to enter the stage of standardized development. Looking into the future, under the new pattern of "double circulation" of China's economy and the new requirements of the "Fourteenth Five Year Plan" development, the automobile circulation industry, with second-hand cars as the core, will have important strategic significance as a key area to stabilize growth and expand domestic demand. Therefore, it is mentioned in the 2021 China Second hand Car Finance and Ecology Report that in 2020, China's second hand car financial penetration rate will reach about 30%, and is expected to reach about 48% in 2025. According to Analyst Frost
&Sullivan predicted that with the increase of the proportion of second-hand car consumption in the total car consumption, it is estimated that by 2030, the scale of China's second-hand car auto financial market will reach 704.3 billion yuan.
China's second-hand car market has a good development prospect, attracting players from all walks of life
As the trading volume of second-hand cars in China has increased year by year, the financial market of second-hand cars in China has a huge imagination space under the continuous high enthusiasm of the public consumers and the two-way promotion of favorable policies, leading to the influx of a large number of players. The players in the used car financial market today are mainly divided into five categories: banking institutions represented by Ping An Bank and Industrial and Commercial Bank of China; The finance companies of the OEMs represented by General Motors Finance and BMW Finance; Credit guarantee companies represented by Zhejiang Anxin; Financial leasing companies represented by Xianfeng Taimeng, Jianyuan Capital and Fengbang Leasing; An Internet automobile trading platform based on Dasouche, Cangu and melon seed used cars.
In addition, with the development of the used car financial market, a number of used car testing and evaluation institutions, represented by Car 300, have emerged.
