China Automobile Dealers Association: In January, the national second-hand car market transaction volume was 1.4613 million units, a year-on-year decrease of 13.45%.

On February 12, the China Automobile Dealers Association released an analysis of the used car market in January 2025. In January 2025, the national second-hand car market had a transaction volume of 1.4613 million vehicles, a decrease of 23.1% compared to the previous month, and a decrease of 13.45% compared to the same period last year, with a transaction amount of 96.363 billion yuan. In January, the national second-hand car market transaction volume showed a downward trend, mainly influenced by multiple factors. Firstly, the implicit early holiday phenomenon before the Spring Festival was common, with many used car dealers returning home early, leading to a reduction in effective working days, directly affecting normal transaction activities. Secondly, dealers concentrated on clearing inventory in January, and no longer replenished stock, further reducing market supply, resulting in a decrease in transaction volume and a decrease in dealer gross profit or even losses. Additionally, although some regions gradually released trade-in policies, January was still a transition period before the policy was fully implemented, and the policy effects had not yet fully manifested. Overall, the overdrawn consumption demand at the end of last year and the transitional period of policies led to a 23.1% month-on-month decrease and a 13.45% year-on-year decrease in transaction volume in the second-hand car market in January. In terms of market characteristics, the January second-hand car market showed the following features: 1. The transaction volume of trucks decreased by 11% year-on-year, higher than the industry average. As a type of production vehicle, trucks usually have good market performance in the first quarter of each year. 2. Cross-regional transactions decreased by 1% compared to the same period, with reduced logistics efficiency before the Spring Festival and weak market demand leading to a decrease in cross-regional second-hand car transactions. 3. The average transaction price of second-hand cars in January was 65,900 yuan, a decrease of 600 yuan compared to the same period, indicating that market prices were still in a downward trend. The cost of purchasing a car for consumers has decreased, reflecting adjustments in the market supply and demand relationship, with significant inventory pressures on the supply side and insufficient consumption power on the demand side. With the end of the Spring Festival holiday, dealers will gradually return to work, and market transaction activities will gradually return to normal. In addition, the comprehensive implementation of replacement policies will stimulate consumer demand for new cars, enriching the source of second-hand cars and further promoting the rise in market transaction volume. In the new year's replenishment cycle, dealers will adjust inventory structures according to market demand to meet diverse consumer needs. Therefore, the second-hand car market is expected to experience a wave of warming trends in the second half of February, with great potential for market recovery. Looking ahead to 2025, the used car market will face the dual challenges of new car price wars and industry reform. Price wars in the new car market will have a certain impact on the used car market, especially when new car prices are falling, consumers may be more inclined to choose new cars. Therefore, the used car industry needs to innovate marketing methods to enhance its competitiveness, attract more consumers, and turn crises into opportunities. Analysis of the structure of the second-hand car market by vehicle type in January 2025: Passenger car situation: The basic passenger car trade volume was 839,200 units, down 15.15% year-on-year; SUV trade volume was 197,300 units, down 12.6% year-on-year; MPV trade volume was 95,800 units, down 11.51% year-on-year; and crossover passenger car trade volume was 36,900 units, down 2.7% year-on-year. Commercial vehicle situation: The number of buses was 83,000 units, down 13.89% year-on-year; and the number of trucks was 113,600 units, down 11.34% year-on-year. In January, the overall second-hand car market showed a significant downward trend. The trading volume of passenger cars and commercial vehicles both experienced significant declines compared to the same period last year. Passenger cars decreased by 14.09% year-on-year, while commercial vehicles decreased by 12.44% year-on-year. Analysis of the age of second-hand car transactions in January 2025: In January, the majority of second-hand car transactions were in the 3-6 year age range, accounting for 50.74%, an increase of 2.88% compared to the same period last year; the proportion of vehicles under 3 years old was 26.95%, a decrease of 1.92% compared to the same period last year; vehicles aged 7-10 years accounted for 15.27%, a decrease of 1.31% compared to the same period last year; and vehicles over 10 years old accounted for 7.04%, an increase of 0.35% compared to the same period last year. In January, vehicles in the 3-6 year age range accounted for the majority of transactions, reaching 50%. Vehicles under 3 years old and those aged 7-10 years both showed significant decreases compared to the same period last year. Analysis of the six major regions in January 2025: Second-hand car trading situation in the six major regions in January 2025: In January 2025, the national second-hand car trading volume showed a noticeable decrease compared to the same period last year, with varying degrees of decline in each region. The North China, East China, and Central-South regions experienced the most significant declines, with decreases exceeding 15%. The Northeast and Northwest regions experienced relatively smaller declines. In East China, the second-hand car trading volume was 404,800 units, a 15.1% year-on-year decrease, with a reduction of 72,000 units compared to the same period last year. In the current month, the trading volume of various provinces in East China showed varying degrees of decline compared to the same period last year. Specifically, Shanghai had the most significant decrease in second-hand car trading volume, reaching 35.6%, making it the province with the largest decline in the region. Jiangxi followed closely, with a 26.6% year-on-year decrease in trading volume. In addition, Jiangsu, Anhui, Fujian, and Shandong all experienced double-digit declines in trading volume. In comparison, the market performance in Zhejiang was relatively stable, with a year-on-year decrease in trading volume of only 3.6%. In the Central-South region, the second-hand car trading volume was 423,100 units, a 17.06% year-on-year decrease, with a reduction of 87,000 units compared to the same period last year. In this month, the trading volume of various provinces in the region generally declined, with Henan and Hainan experiencing particularly significant decreases in second-hand car trading volume, both with declines close to 20%, making them the two provinces with the largest declines in the Central-South region. Hunan and Hubei also experienced decreases of 14.7% and 17.7%, respectively, compared to the same period last year. As an economic leader in the Central-South region, Guangdong also showed a notable downward trend, with a 17.4% year-on-year decrease. The decline in the Guangxi market this month was relatively small, with a year-on-year decrease of 8.9%. In North China, the second-hand car trading volume was 197,800 units, a 16.98% year-on-year decrease, with a reduction of 40,500 units compared to the same period last year. Beijing and Tianjin saw the most significant decreases in the market, with year-on-year declines of 30% each. Inner Mongolia also experienced a decline in the market this month.A significant decline, with a year-on-year decrease of over 20%. The market in Hebei decreased by 8.9% compared to the same period last year. In contrast, the market in Shanxi has remained relatively stable, with trading volume increasing slightly by 0.4% compared to the same period.In the Southwest region, a total of 244,900 vehicles were traded, a year-on-year decrease of 9.19%, with a decrease of 24,800 vehicles compared to the same period last year. This month, Yunnan and Sichuan showed a faster decline trend, with trading volumes decreasing by 11.8% and 14.2% respectively compared to the same period last year. The Tibet market also faced challenges, with a nearly 10% decrease in trading volume. Relatively speaking, the Chongqing market performed relatively steadily, with trading volume only decreasing by 2.5% year-on-year. The Guizhou market showed impressive performance, achieving a 6.6% increase in trading volume compared to the same period last year, making it the only province in the Southwest region with an increase. In the Northeast region, 106,800 vehicles were traded this month, a year-on-year decrease of 2.43%, with a decrease of 2,700 vehicles compared to the same period last year. This month, the three provinces of Heilongjiang, Jilin, and Liaoning also showed a slight decline compared to the same period last year. Among them, Heilongjiang had the smallest decrease, with a year-on-year decrease of only 0.8% in trading volume. Jilin and Liaoning markets decreased by 3.3% and 3.2% respectively compared to the same period last year. In the Northwest region, a total of 83,800 vehicles were traded this month, a year-on-year decrease of 0.2%, with a decrease of 200 vehicles compared to the same period last year. Specifically, the markets in Gansu and Qinghai performed poorly, showing significant declines: Gansu's trading volume decreased by 16.3% year-on-year, while Qinghai's decrease reached 19.2%. The markets in Shaanxi, Ningxia, and Xinjiang relatively performed steadily, showing a growth trend. Among them, Xinjiang had the strongest market performance, with a 8% growth in trading volume; followed by Shaanxi with a 5.5% growth; Ningxia also achieved a slight increase, with a 1.5% increase in trading volume. Cross-regional circulation situation in 2025 In January, the transfer rate of used cars was 28.93%, a decrease of 0.72% compared to the same period last year. The total number of used cars transferred was 422,800, a decrease of 15.54% compared to the same period last year.