According to the China Automobile Dealers Association on July 18, 2024, from July 8 to July 14, 2024, the average daily transaction volume of the used car market reached 60,900 vehicles, down 1.11% compared with the previous week, but an increase of 3% compared with the second week of June. On a comparable basis, the total number of used car transactions from July 1 to 14 was 732,000, up 1.7% from the same period in June. This data shows that although the market volume fluctuates in the short term, the overall trend still shows some growth potential.

The continuous promotion of the subsidy policy for the renewal of private car scrapping has accelerated the release of this demand. Buying and changing cars have become the best choice for some families, which not only promotes the release of residents' consumption potential, but also brings new development opportunities for the used car market.

According to the survey data, while 35% of used car dealers said that the market volume in the second week of July was not satisfactory, 23% of companies still believe that the market volume increased from the previous week. In terms of passenger flow, 39% of dealers said that this week's passenger flow was worse than last week, while 42% of dealers said that it was basically the same as last week, showing the relative stability of market demand.

The new car market experienced a fierce price war in the second quarter, and the transaction price of new cars began to show a trend of stabilization in July. This positive change is expected to bring new vitality to the used car market, enhance the activity of transactions, and provide strong support for reversing the continued decline in the used car market. The stable development of the new car market provides more high-quality vehicle source choices for the used car market, and also provides more reference and comparison opportunities for consumers to buy cars.

July and August, as the traditional off-season of the used car market, are faced with adverse factors such as high temperature and extreme weather, which will have a certain impact on the offline passenger flow, resulting in the inventory pressure of car manufacturers is still large. Although there are certain challenges in the market environment, the prosperity of the summer tourism market has brought new growth opportunities for the used car market.

Although the used car market may be affected by some fluctuations and challenges in the short term, from a long-term perspective, the fundamentals of China's used car market, such as the scale, policy environment, market structure and consumer demand have not changed fundamentally. With the continuous expansion of the automobile consumption market and the improvement of consumers' recognition of second-hand cars, the long-term development trend of the second-hand car market still maintains a good trend. In the future, the used car market is expected to continue to maintain steady growth, providing consumers with more diversified car purchase options and services.

From the perspective of the trading situation in various regions, the trading volume in East China and Southwest China showed an increasing trend this week, while the trading volume in Northeast China, North China and Central and South China showed varying degrees of decline. East China, as an important region of the country's second-hand car trading, this week's average daily trading volume reached 16,300 vehicles, achieving a 1.62% sequential growth, successfully ending the two-week decline, marking the market officially entered the recovery stage. From the point of view of specific provinces, the second-hand car trading volume in Shandong, Jiangxi and Anhui achieved an increase of 5.9%, 4% and 2% respectively, which shows the good trend and growth potential of the second-hand car market in these provinces, and injected positive impetus to the overall recovery of the second-hand car market in East China and even the whole country.

The average daily volume of used cars in North China this week was 0.2,200, down 5.14 percent from the previous week, showing some market volatility. The main declines were concentrated in Beijing, Hebei and Inner Mongolia, all of which experienced declines of more than 10%, which had a significant impact on the overall figure for North China. Despite the current challenges, considering the huge population base and economic development potential in North China, the second-hand car market still has broad space and prospects for development.

The average daily transaction volume of used cars in Northeast China this week was 0.21 million, down 2.72% from the previous week, continuing a slight decline since July. From the market performance of major cities, the trading volume of used cars in Changchun and Dalian is relatively weak, which has a certain impact on the overall market.

The average daily transaction volume of used cars in Southwest China this week reached 12,500, an increase of 3.72% compared with the previous week, showing a significant improvement in the market, which has become the main support for the market volume this week. The cumulative decline in the region in the previous two weeks had been close to 10 per cent, but this week the market has rebounded positively on the back of increased trading volumes in major cities such as Guiyang, Chengdu and Kunming.

This week, the average daily transaction volume of the used car market in the central and southern regions reached 26,900 vehicles, but the transaction volume showed a decrease of 4.34 percent compared with the previous week. In this region, the decline of the two regions is particularly significant, 4.38% and 6.9% respectively. In contrast, the used car market in Wuhan has shown a positive growth trend, with a 5.6% increase in transaction volume this week.

The average daily transaction volume of used cars in Northwest China this week was maintained at 0.09 million, which remained stable compared with last week without significant fluctuations. In this region, Qinghai is particularly outstanding, with a 5% increase in transaction volume this week, becoming an important force supporting the stability of second-hand car transaction volume in Northwest China.

To sum up, this week's used car market in the face of off-season impact and inventory pressure and other challenges at the same time, but also ushered in tourism enthusiasm brought by the increase in demand for purchase and new car market prices stabilized and other positive factors. Second-hand car dealers should flexibly adjust their business strategies, seize the opportunity of the summer tourism market, and launch second-hand car products that meet the needs of consumers. At the same time, we should pay attention to the dynamics of the new car market and use the opportunity of stabilizing new car prices to promote used car transactions.