Second hand car market improving in China

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The Chinese second hand car market is still in its infancy, and as a result residual prices on second hand motors remains rather high, however if China’s car market continues to grow as it does then it is likely that second hand motors will drop in price as with the American and UK second hand car markets. In short, get ready to be able to afford all the cars that you ever wanted but were unable to buy new!

From the China Knowledge:

Mar. 8, 2010 (China Knowledge) – The China Automobile Dealers Association said on Friday that 3.34 million second-hand cars changed hands last year, 22% more than a year earlier, the China Daily reported.

The sales were valued at RMB 148.8 billion, up 25.9% year on year.

Sedans accounted for 53.8% of the total sales, while second-hand truck sales surged 44% from a year earlier.

The figure was mainly boosted by the Chinese government’s rural subsidies and tax cuts on purchases of smaller vehicles last year.

The China Association of Automobile Manufacturers said on Jan. 11 that new auto sales were 13.64 million units in 2009, up 46.15% year on year. China has overtaken the U.S. as the world’s biggest auto market.

China expects its auto sales to increase by more than 10% this year because the government will continue to help boost sales and because people’s consumption power is rising, said Chang Xiaocun, head of the Ministry of Commerce’s market system development office.

It would also be wise to point out that the second hand car industry has yet to consolidate and there are basically no big automotive chains dealing in second hand cars as of yet. Is this a big future growth area? Most certainly.