According to the information obtained from the Futu Finance app, on August 29th, the China Automobile Dealers Association released the weekly report on used cars. From August 19th to August 25th, the daily average trading volume was 0.0592 million vehicles, and the trading scale was basically flat compared to the previous week, still hovering at a low level. Based on the comparable calculation from August 1st to August 25th, the trading volume of used cars was 1.3 million vehicles, a 2% decrease compared to the same period in July. Multiple factors such as extreme weather changes, fluctuations in consumer confidence, and seasonal market effects have collectively affected the overall trend of the market. It is expected that the trading volume in August will reach around 1.57 million vehicles, which is basically the same as the same period last year.

Although the overall performance of the used car market was stable this week, the market for new energy used cars showed a different trend. According to the association's data, in the first half of 2024, a total of 0.5065 million new energy used cars were traded nationwide, a year-on-year increase of 63.5%, which is much higher than the overall growth rate of the used car market. This indicates that as the new energy vehicle market continues to expand, the new energy used car market has also entered a rapid growth period. Although the resale value of new energy used cars still has a certain gap compared to gasoline vehicles, it is gradually improving.

According to the "2024 July China Automobile Residual Value Research Report," although the residual value of plug-in hybrid models and pure electric models has slightly declined, some popular models such as Model X, Model S, Nio ET5T, etc. still occupy the top of the residual value list. At the same time, the average transaction price of new energy used cars in July increased compared to the previous month, indicating that the market's acceptance of new energy used cars is increasing.

In order to actively respond to the call of the national "Year of Consumer Promotion" and further promote the prosperity of the automotive consumer market, the central and local governments have successively introduced a series of policies for trading in old cars for new ones. These policies not only provide substantial subsidies for consumers to purchase cars, but also have a significant promoting effect on the used car market. It encourages the replacement and renewal of a large number of old vehicles, thereby directly increasing the supply of the used car market. These refurbished old vehicles can re-enter the circulation of the used car market to meet the car-buying needs of different consumer groups. According to the latest value-added tax invoice data from the State Administration of Taxation, the sales of used cars increased by 7.2% year-on-year from May to July, with a significantly improved growth rate compared to the previous period.

This week, the used car market showed distinct regional differences, with varying degrees of decline in trading volume except for the central and southern regions.

Specifically, as an important distribution center for used car trading nationwide, the daily average trading volume in the East China region this week was 0.016 million vehicles, a decrease of about 3.22% compared to the previous week. The decline in Shanghai and the surrounding areas was particularly significant, reaching 18%. The decline was mainly due to extreme weather conditions, and the high temperature and rainy weather reduced consumers' enthusiasm for car purchases. At the same time, the seasonal market effect has also exacerbated the downward trend in trading volume. Overall, the market activity has been suppressed in the short term, and some dealers are facing challenges of inventory pressure and fund recovery.

This week, the daily average trading volume of used cars in the North China region reached 0.0022 million vehicles, a decrease of 2.89%. However, it is worth noting that the trading volume in cities such as Tianjin and Shijiazhuang has shown signs of recovery, indicating some market warming. However, overall, the North China region still faces significant pressure and needs to further stimulate market vitality.

In the Northeast region, the daily average trading volume of used cars reached 0.0021 million vehicles this week, a decrease of 3.26% compared to the previous period. The trading volume in important markets such as Jinzhou and Changchun also experienced a certain degree of decline, with decreases of 7% and 10% respectively. Overall, the used car market in the Northeast region still needs to further boost confidence and promote the recovery of trading volume.

The second-hand car market in the Southwest region also showed a downward trend in trading volume this week, with a daily average of 0.013 million vehicles, a decrease of 3.34% compared to the previous week. Although the market has recovered to some extent in the previous period, the trading volume in its key cities fluctuated again this week due to the impact of high temperatures. Market participants need to closely monitor market dynamics and adjust their business strategies flexibly to respond to market changes.

In contrast to the general downward trend in other regions this week, the second-hand car market in the Central-Southern region has shown a relatively stable situation, with no significant decline in trading volume. The daily average trading volume is 0.0249 million vehicles, an increase of 4.45%. The market foundation in the Central-Southern region is relatively solid, and consumer demand is relatively stable. At the same time, the region is less affected by extreme weather, so market activity can be maintained. Especially in cities such as Nanning, Wuhan, and Jiaozuo, the growth rate of second-hand car trading volume is significant, reaching double-digit levels.

The Northwest region is relatively underdeveloped in the field of used car trading, with a daily average trading volume of only 0.0009 million vehicles this week, a decrease of 1.58% from the previous period. Among them, the market in Lanzhou showed a certain growth trend, with a 3% increase in trading volume, while other cities in the region showed a slight decline.

In summary, although the trading volume of the used car market remained relatively stable and at a low level this week, there is still a certain potential and vitality in the used car market with the promotion of the policy of replacing old cars with new ones and the rapid growth of the new energy used car market.