(Yicai Global) Aug. 22 -- Cancellation of the circulation limit for second-hand cars in many regions has breathed new life into the used car trade in Guangzhou. Yicai journalists recently visited several local second-hand car markets and discovered that the previously-owned car sales rebounded in August -- the off season -- with both sales volumes and prices rising.
A dealer in Baolijie, Mr. Zhang, told Yicai journalists on Aug. 21 that, despite the August off-peak, his business has improved. Second-hand car buyers were mainly from two groups: customers with license plate quotas in Guangzhou, and those from other places. He further noted that, since last month, customers from places in Guangdong outside the Pearl River Delta region, as well as those from Guangxi and other provinces had obviously increased, and that prices also rose slightly. Estimates presage a certain space for growth in both sales volume and price after the peak season in "golden September and silver October."
"Limits on second-hand car circulation are still in effect in nine cities in the Pearl River Delta region, but have been cancelled in non-Pearl River Delta regions. Other provinces, such as Guangxi, have also cancelled these limits. This is good news for us. Furthermore, the Guangzhou second-hand car circulating quota started not long ago, and this helps car owners to finish trades quickly, often reducing the time by half a month or so," Mr. Zhang said.
Ye Jianwei, a sales manager in the Guangjun Used Car Market, also told Yicai in an Aug. 22 interview that the number of outside customers coming to Guangzhou to buy second-hand cars had significantly increased of late, and this has set used-car quantities and prices onto an upward trajectory. For example, the markup for a second-hand car with a price of about USD15000 (CNY100,000) has increased by CNY3,000 to CNY4,000, reversing the dismal situation of the second-hand car trade in the first half of the year.
Due to the joint efforts of the Guangzhou Traffic Committee and Guangzhou Auto Service Industry Association, among others, the "Guangzhou second-hand car circulating quota" kicked off this year, and will promote the outward movement of vehicles with Guangdong license plates. Many second-hand car dealers in Guangdong have received quotas in recent months.