Today, the profit margin of new cars is shrinking, and used cars are becoming a new growth point in China automobile market. How to know and participate in this market, and how to get from players to winners, is worth pondering by every competitor.

Editor's Note: 2007 is the first year of used cars in China.

What supports this assertion is that since 2004, the growth rate of used cars has been as high as 30% for three consecutive years, which is accompanied by the continuous price reduction of new cars and the shrinking profit margin. Therefore, the second-hand car market is rapidly becoming a new growth point for automobile practitioners, and this fact is impacting the sensitive nerves of profit-seekers.

Also impacting their sensitive nerves, there is a beautiful vision outlined by mature foreign used car markets-far exceeding the sales of new cars, with a profit rate as high as 45%, which makes people expect more and more from the used car market in China.

In the huge market of this huge country, people from all walks of life in the used car industry have been in high spirits; People are expecting a spectacular scene in the second-hand car market in China at a certain moment, just like the blowout phenomenon in the new car market.

However, the true and false car condition, the confusion of evaluation and the lack of honest market environment are like a heart lock, which locks consumers' enthusiasm for used cars.

Whether it's a traditional used car market, a brand-new used car or a new auction house, after years of hard work, they finally see the prospects, or smell the profits and become one of them.

Now, they gather in the center of the used car market in China. What they need is something more practical. They are trying to break the lock and let more people accept used cars with more confidence.

A big drama, props have been set, the protagonist has also appeared, how to play is the key.

Blowout symptom

When Chen Xiaobo people sensitively smell the growing business opportunities in the second-hand car market, industry analysts have further confirmed this trend in the change of data.

The second-phase project of Beijing second-hand car market, which is located on the west road of South Fourth Ring Road in Beijing and covers an area of more than 200 mu, has begun to take shape, while the first-phase project in the west, which was completed and put into use in July 2002, covers an area of 200 mu. More than 200 used car brokerage companies here have been cultivating for nearly five years.

This is the largest second-hand car circulation center in Beijing, with a daily inventory of more than 3,000 second-hand cars. Chen Xiaobo is one of the second-hand car brokers who grew up here, and he can quickly get every subtle change in this market.

He told reporters that in this market, Alto, QQ, Li Xia and other small-displacement cars are very popular with consumers, and nearly 200 cars can be sold every day. The price of small-displacement used cars is ridiculously high. Individual brands of used cars are only 2000 yuan cheaper than new cars.

Most of these small used cars are favored because of their functional advantages. Chen Xiaobo said: Li Xia is one of the most traded small-displacement cars. Mainly because of low fuel consumption, affordable price, convenient after-sales service and maintenance, and relatively cheap parts, young people love to buy this; Alto has a good appearance, low fuel consumption, good performance and high preservation rate, which is very suitable for modification. Beijing is so congested that it is very flexible to drill around and convenient to park, which is very popular.