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As the core shortage crisis of the automobile industry continues to intensify, resulting in limited car production capacity, car prices have also risen relatively, in this case, the second-hand car market is also showing signs of recovery.

According to media reports, due to the extension of the pick-up cycle of new cars and the impact of rising transaction prices, the transaction prices of some second-hand cars have risen. Since the beginning of this year, due to the decline in production capacity and the shortage of raw materials, many vehicle manufacturers have announced to reduce the production of new cars, and many consumers have begun to set their sights on the used car market. Many users who buy used cars also said in an interview: because the booking cycle of new cars is too long, they have turned their attention to used cars. It is understood that there are not a few people who want to buy new cars and turn to second-hand cars for similar reasons. However, the prices of used cars have risen this year, and used car buyers said that when choosing models, they found that the prices of many used cars are unusually strong this year, and the prices of some used cars have exceeded the prices of the same period last year. Relevant industry insiders said that this result is mainly caused by the limited production capacity of many new cars, resulting in a longer pick-up cycle for consumers, as well as the low discount rate for many new cars.

From January to May this year, the average discount rate for new cars among 36 mainstream manufacturers continued to decrease from 15.2% in 2019 to 12.6% compared with the same period in 2020 and 2019, according to Zhao Yun, chief technical expert of the China Automotive Finance and maintenance rate Commission. In addition, the used car industry is becoming more and more transparent and standardized, as well as the high performance-to-price ratio of used cars has also become the main reason for users to choose used cars. China has also issued relevant policies and regulations to promote the development of the used car industry many times, which will also promote the development of the used car market. From January to May this year, the trading volume of used cars in China reached 6.907 million, an increase of 60.9 percent over the same period last year and 22.9 percent over the same period in 2019, according to the China Automobile Circulation Association.

Relevant data show that by 2020, the number of cars in China has reached 281 million. With the gradual growth of car ownership, the prospect of the used car market is also generally optimistic. According to industry insiders, as the domestic car replacement cycle is generally shortened to 3-5 years, used cars will gradually become the first choice for some consumers, making the domestic used car market to achieve steady growth. At the same time, under the influence of the tight supply of related raw materials in the upstream and the rising prices, China's new car sales market will still face a price rise and a longer lift cycle in the second half of the year, and the price of the second driver may continue to rise steadily.

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