5 years ago, few Chinese youths wanted to buy old cars. But as of 2018, about 33% of old automobile buyers on the Uxin app are under the age of 29.
The people who benefited the most from the economic boom in China over the past decade have never been afraid to flaunt their assets, providing sales opportunities for luxury goods producers and high-class carriers such as Ferrari and Maserati.
Despite this, the era is changing. In the context of the recent economy, more and more Chinese people look to the old car market to meet driving demands, Tech in Asia News.
The style code-a new 25-year-old guy who lives in the small southern city of Shaanxi province, China-has just joined the first class of people to buy old cars. He used the savings to deposit 13,000 yuan (1,945 USD) for a Ford version of the 2016 car model in November 8 last year and signed a car purchase agreement in the form of installment by month.
“Dad, my mother spent a lot of money to decorate my new home, so I couldn’t ask them to buy me a car “, fondness.
See old-fashioned vehicles with virtual reality
The story of Hieu is quite typical of Chinese youth. The difference in the trading of Hieu is that he never directly observed the car before buying. He made trades via Uxin, an application to buy and sell old cars on mobile phones. Uxin uses virtual reality technology to create a clear panoramic image that can rotate 360 degrees to the vehicle, allowing potential customers to look inside and out and zoom in.
According to the market research company Analysys, in 2018, Chinese consumers bought about 3.2 million old cars, equivalent to 23% of the Chinese car market. Uxin’s competitors in the domestic market including Guazi and Taoche-two companies in Beijing also use large-resolution apps and photos to sell old cars.
10 days after delivery, he received his car and did not feel disappointed. He says the car’s condition-except for a few small scratches-identical to the image he views on virtual reality glasses.
“I can not say I am pleased 100%, but this is the best car I can buy at my age “, he reveals.
The transaction of the curious code reflects the radical change to the Chinese youth perspective on buying old cars over the last few years.
― “About 5 years ago some young men would tell me they didn’t think of buying an old car. But now the situation has changed. As of 2018, about 33% of older automobile buyers on Uxin are under 29 “, Dai Kun, founder and CEO of Uxin, a speech.
New car consumption decreases, older cars increase
The trend of young men increasingly playing old cars is pushing the development of the used car market. For example, from 2017 to 2018, sales by people under 29 years of age contributed 18%, much higher than the revenue reduction of customers over the age of 29.
Data of the Association of Chinese car retailers shows that the old car market-including both direct and online-growth of 11.5% after each year, reaching 13.8 million vehicles in 2018. The domestic car price of the tank is increased, but not due to smaller supply bridges, but due to new high-class vehicles constantly appearing in the market.
Meanwhile, new automobile consumption in China fell 3.5% to 27.8 million vehicles due to the reducer economy. China’s GDP grew by 6.6% in 2018, the lowest level since 1990, according to government figures.
― “Although the old car market is very sensitive to macroeconomic, it is more closely dependent on the supplier’s warehouse. In addition, the acceleration of the economy tends to change the thinking of people who ever wanted to buy new cars, making them interested in the old car market “, Luo Lei, vice chairman of the Association of Chinese Automobile Retailers Comment.
― “The old car market in China is still in the early stages. In the old car market is ripe, more than 95% of the first car of youth is the old automobile “, Dai director stressed.
In the U.S., the number of old cars that people buy is always higher than 10 million compared to the number of new vehicles for many years, according to the COX Automotive market research firm.
The price of the old car will only diminishes
Compared to the most developed markets-where people have used cars nearly a century-the mass car market in China has only existed for about 3 decades, but is accelerating rapidly. In 2009, Chinese people bought more cars than every nation and became the largest car market in the planet. Last year, the number of new cars that the Chinese bought was 60% larger than the American population and 70% larger than the European Union population.
Due to the old car supply depending on the number of new cars on the market, the price of the old car will only decline over time.
― “When the supply becomes more abundant, the price of the old car continues to decline and the people will see the benefit of the cost”, Dai comment.
Dai himself never bought a new car, but he replaced the old car regularly.
― “Once you have seen the cost benefit of buying your old car, you won’t be able to stop,” he insists.