Analysis And Suggestions For China's Used-car Market

In recent years,with the continuous growth of automobile production,China has surpassed the United States,Japan and became the world's first production and marketing car country in 2009.Meanwhile,the increase in car ownership also led to the gradual booming of used car market.However,compared to foreign mature used car markets,China's used car market started late,but some statistics showed that China's used car market was rapidly growing.In 2016,the annual used car trading volume reached more than 10 million.But the current domestic used car market was inefficient: around 80% of used cars relied on offline used car brokerage companies;the costs were high and the relevant policies were imperfect.Thus,this research aims to find out the specific problems in the and to suggest the most suitable Chinese used car trading mode,in order to ensure the healthy and orderly development of the used car market.Now in the domestic used car industry,there are many emerging business models,such as used car dealers,car manufacturers owned used car chain companies.Despite their current transaction volume is small,they represent the future.The research of China's used car trading model can provide new ideas for the future research of used car trading model in China.This paper first studies the trading patterns of used car market in China and foreign countries,and points out that the success of foreign used car market is mainly due to the effective protection of the quality,transparent transaction process and reasonable pricing of used cars.Secondly,through the field survey of some domestic mainstream used car brands,we confirm that the concept of lemon markets for used car exist in China,and builds a numerical simulation modeling to identify and understand the current used car market in China.Finally,simulate the current domestic major trading model,through the simulation results,to find good used car trading models in China market.