·Used car trading restrictions will be lifted at the end of May

The General Office of the State Council recently issued the "Several Opinions on Promoting Convenient Transactions of Used Cars" (hereinafter referred to as "Opinions"), and clearly proposed to abolish "restricted movements" and implement policies and measures for the registration of used cars in different places. Can these measures activate the used car market and create more market space for new car consumption?  
The potential market for used cars is amazing
"The policy adjustments at the level of second-hand car transactions can be released by the Ministry of Commerce according to the usual practice. At most, the Ministry of Industry and Information Technology, the State Administration of Taxation, the China Insurance Regulatory Commission and other departments. This issue is issued by the State Council, which shows that the central government attaches great importance to it." Deputy Secretary of China Automobile Dealers Association Long Luo Lei evaluation.
Statistics show that automobile consumption has become an important force driving consumption. In 2015, China's total automobile sales exceeded 3.6 trillion yuan, accounting for 12% of the total retail sales of consumer goods. However, in the middle of last year, new car sales experienced negative growth for several consecutive months. Until the country introduced a purchase tax reduction of less than 1.6 liters (including 1.6 liters), the car market rebounded in the fourth quarter, but the annual growth rate It is also only 4.7%. In February of this year, automobile sales showed a new year-on-month and double-year drop. The analysis shows that after years of rapid growth, China's automobile consumption structure has undergone qualitative changes. In 2015, replacement demand accounted for nearly 20% of new car sales, and used cars have become an important driving force for the activation of new cars.
However, China's used car market, regardless of size or level, is not commensurate with the identity of the world's first car market. According to statistics from the China Automobile Dealers Association, in 2015, China sold nearly 24.6 million new cars, and the sales of used cars were only 9.41 million, with sales of nearly 550 billion yuan, a growth rate of only 2%. In developed countries in Europe and America, the sales ratio of used cars to new cars is 1.5:1. According to this ratio, the potential market size of used cars in China will reach 36 million vehicles per year, and the potential sales will be about 2 trillion yuan per year. According to another method, the annual sales of used cars in China only accounted for 5.5% of the vehicle ownership, while Japan is about 11% and the United States is 16%. Even if it reaches the Japanese level, the annual sales of used cars in China will reach 17 million, and the growth potential is huge. The revitalization of used car stocks not only creates new space for new car consumption, but also drives the development of maintenance, maintenance, insurance, finance and other industries.
Cancel the "restricted move" before the end of May this year
“The restrictive factors for the development of used cars in China are the first to push the “restricted move.” Luo Lei explained that the so-called “restricted move” is to restrict the use of second-hand vehicles from below the certain emission standards to the local market. Paying attention to environmental protection and raising new vehicle emission standards are understandable. However, it was not until this year that the national five emission standards began to be implemented nationwide. In some provinces, the implementation of the second-class vehicle-five emission standards in 2014 was apparently “the meaning of drunkenness is not in the wine”.
Luo Lei analyzed that the “restricted move” policy has curbed the number of used cars that can be circulated locally, as well as the old car replacement behavior of urban residents who are restricted to purchase. In the cities where Beishangguang and other motor vehicles are restricted, consumers must update their vehicles before they can sell the old cars to obtain the car purchase targets. The “restricted” policy has made it impossible for used cars in these cities to be sold to nearby markets, and even if they are sold, the price of cars has shrunk dramatically. Therefore, many consumers choose to delay the update, while others have to sell old cars at low prices, and consumer rights are damaged.
According to the survey, 95% of prefecture-level cities across the country have implemented “restricted migration”. 12 cities above the national standard, 261 cities above the national standard, 51 cities above the national standard, and 3 cities above the national standard. This has led to the inability of the old used cars that meet the road standards for more than 8 years in the first- and second-tier cities with abundant vehicles.
The "Opinions" clarify that it will create a market environment in which used cars are freely circulated. All localities may not formulate policies to restrict the movement of used cars. In addition to the relevant vehicles that are encouraged to be phased out and required to be phased out, and the regions with special requirements such as the key areas for air pollution prevention and control (Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta), as long as they meet the national standards for vehicle emission and safety in use, The second-hand car in the period of validity of the environmental protection periodic inspection and the validity period of the annual inspection can be relocated. The "Opinions" clearly stated that the place where the "restricted move" has been implemented must be cancelled by the end of May 2016.
Construction of the second-hand car market main credit record
“Consumers buy used cars, most afraid of information opaque, buy accident cars, problem cars, high-priced cars.” Luo Lei analyzed that the “Opinions” clearly proposed to speed up the establishment of production, sales, registration, inspection, maintenance, maintenance, The information system of the whole life cycle of insurance, scrapping, etc., non-confidential and non-private information should be open to the public for easy access.
Luo Lei explained that the transparency and regulation of information circulation services is a major feature of the used car market in developed countries. In the United States, information on the production, sale, trading, accidents, and theft of a car can be publicly queried. Some of them are provided free of charge by government agencies, and some are provided by professional organizations. In China, the above information is monopolized by automobile manufacturers, distribution service agencies and insurance companies, and is not completely open, especially the details related to accident repair. The "Opinions" proposes to speed up the improvement of the used car circulation information platform, strengthen interconnection and information sharing, and will be conducive to the improvement of the above problems.
In response to the cumbersome procedures and inconvenient transactions, the Opinions also proposed solutions: integrating used car transactions, taxation, insurance and registration processes, launching one-stop services, simplifying the registration process for used car transactions, and promoting off-site transactions for used cars. Registration, etc. Luo Lei believes that this will simplify the transaction process, especially to facilitate the procedures for the transfer of used cars.
The "Opinions" proposed to establish the credit record of the second-hand car market, which was included in the national credit information sharing platform, and was disclosed in the enterprise credit information publicity system and the "credit China" website in time according to relevant regulations. Luo Lei believes that this will promote the second-hand car trading market, distribution companies, auction companies, appraisal and evaluation agencies, and maintenance service enterprises to operate in compliance with laws and regulations. Actively guide the development of online and offline integration of used car trading companies, encourage the development of e-commerce, auction and other trading methods, will introduce a competitive mechanism for the market, promote information disclosure, transparent car conditions, reduce transaction costs, and ultimately bring benefits to consumers.

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