Ecns.com — China encourages second-hand car trade

Gives a sense of how early in the game it still is for China.

China now has about 172 million cars, increasing by about 24 million a year. In developed countries, the ratio of second-hand to new cars is usually around 3:2. Based on that rate, China's second-hand car trade should exceed 36 million transactions worth 2 trillion yuan (308 billion U.S. dollars) each year, if a second-hand car is valued at a hypothetical 55,000 yuan. That is three times more that the value of the second-hand car market in 2015.

Second-hand trading will transfer vehicles from high-income groups to lower; from rich eastern regions to less developed central and western areas, from big cities to smaller and then on to villages.

The auto industry plays a key role in steady growth and expands consumption. Spending on automobiles and gas represented nearly 20 percent of retail consumption in 2015, according to the National Bureau of Statistics….

Ecns.com

China encourages second-hand car trade