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The second-hand car market bid farewell to the era of profiteering, from hot to deserted, where is the way out?

author:Said Yifei

Friends, do you remember the used car market that used to be busy? What once symbolized prosperity and vitality is now a hot summer day. Guangzhou Guangjun second-hand car trading market, which was once a symbol of prosperity, now seems a little lonely, which makes people sigh.

The second-hand car market bid farewell to the era of profiteering, from hot to deserted, where is the way out?

Let's look back at the glorious past. At that time, Ah Hao's second-hand car shop had a thriving business, and his monthly income of hundreds of thousands seemed to be at his fingertips. However, now he is facing a cold voice, it is difficult to sell cars, and profits are as thin as paper. This is not an isolated case, according to the data of the China Automobile Dealers Association, in recent years, second-hand car dealers seem to be tricked by the god of fate, with a loss ratio of up to 92%, which is shocking.

The second-hand car market bid farewell to the era of profiteering, from hot to deserted, where is the way out?

The reasons for this are as complex as the falling leaves in autumn. On the one hand, there is the pressure brought about by the macroeconomic environment, and on the other hand, there is the intensifying price war in the new car market. The price of a new car is like a diver, swooping all the way, making consumers switch to the arms of new cars. The inventory vehicles in the second-hand car market are like lonely boats forgotten by time, drifting in the vast sea, and it is difficult to find a home.

The second-hand car market bid farewell to the era of profiteering, from hot to deserted, where is the way out?

However, used car dealers are not sitting still. They are like tenacious warriors, seeking survival in the midst of adversity. They expand their online sales channels and use well-known used car platforms to attract potential buyers by lighting up a beacon in the dark. At the same time, they have also set their sights on overseas markets, and the export of used cars has become a new outlet for them. Since the pilot in 2019, the export of used cars has been like the rising sun, illuminating the way forward for used car dealers.

The second-hand car market bid farewell to the era of profiteering, from hot to deserted, where is the way out?

At the policy level, the second-hand car market has also been cared for and supported. The notice of the "Action Plan for Promoting the Trade-in of Consumer Goods" jointly issued by 14 departments including the Ministry of Commerce has injected new vitality into the development of the second-hand car market like a spring breeze.

Although the cold winter of the second-hand car market may continue for a while, we have seen the tenacity and determination of practitioners, as well as the care and support of policies. How will this market develop in the future? Is it like a phoenix nirvana, reborn from the fire, or like a meteor crossing the night sky, short and gorgeous? Let's wait and see. At the same time, we also look forward to your active participation in the discussion and sharing your views and insights on the used car market. If you have relevant experiences or stories, please feel free to leave a message in the comment area to share. Thank you all for reading and supporting!

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