According to the Zhiyun Finance APP, on December 12, the China Automobile Dealers Association released the weekly report on used cars. Entering December, the used car market has shown a significant active trend, with an average daily trading volume reaching 0.0666 million vehicles, realizing a growth of 1.22% compared to the previous statistics period, and further increased by 1 percentage point on the relatively high baseline of November. In the past two months, the market's average daily trading volume has continued to maintain a high level above 0.065 million vehicles, fully demonstrating the arrival of the year-end market peak season.

Note: The trading volume is calculated based on 5 working days.

According to the latest data from the Ministry of Commerce, as of December 9, the national automobile replacement (scrapping) has exceeded 5 million vehicles in total, of which scrapping renewal exceeded 2.44 million vehicles, and replacement renewal exceeded 2.59 million vehicles. Currently, the automobile replacement is being effectively and orderly promoted, with the policy effects accelerating to manifest, providing strong support for the thriving development of the used car market.

From the monthly trading trend, although June to August is usually the off-season for the market, the trading volume of used cars has shown a trend of fluctuating upward. With the arrival of the 'Golden September and Silver October' peak season and the promotion of automobile replacement policies, November has become the peak trading period of the year, with a monthly trading volume reaching 1.78 million vehicles, an increase of 8 percentage points compared to the same period last year.

In addition, the introduction and implementation of local policies have injected new vitality into the used car market. Taking Guizhou Province as an example, the province has implemented the details of the subsidy policy for automobile replacement (scrapping) in 2024, providing car owners who replace or scrap their vehicles with a subsidy support of up to 0.019 million yuan when purchasing used passenger vehicles. According to relevant association data, the used car trading volume in Guizhou Province increased by 10% compared to the same period last year in November. The implementation of this series of policies undoubtedly injects strong momentum into the national used car market.

From the perspective of inventory, due to strong demand for car purchases from winter until just before the Spring Festival, many Dealers have chosen to clear their inventory and recover funds during this period, preparing well for market deployment in the coming year. It is expected that in December, second-hand car Dealers will pay more attention to controlling the pace of procurement, with the average inventory cycle likely to be further shortened from November's 48 days.

On the macroeconomic level, since the fourth quarter, China's economy has continued to show signs of recovery and improvement. Economic Indicators in various fields such as consumption, investment, industry, and business operation have all shown positive changes. According to data from the National Bureau of Statistics, the total retail sales of automotive goods reached 445.2 billion yuan in October, a year-on-year increase of 3.7%, indicating that the growth rate of consumption may further accelerate.

This month, as the policy of subsidies for replacing old cars with new ones is about to expire, consumers will accelerate their car purchase decisions to seize the policy benefits. At the same time, the end-of-year market tail effect will also further boost consumers' willingness to buy cars. These two factors will significantly enhance the activity of the second-hand car market, and the transaction volume is expected to increase substantially, while the influx of a large number of quality vehicles will also further optimize the quality of car sources. For Dealers, this is undoubtedly an excellent opportunity to expand Business and capture market share; for consumers, it means more choices and more favorable purchase conditions.

In summary, the second-hand car market in December will show a prosperous development under the combined promotion of favorable policies and the year-end consumption boom, injecting new momentum into the healthy development of the entire auto market.

II. Weekly Regional Analysis of the Used Car Market

This week, the overall transaction situation in the national second-hand car market presented an upward trend, but there was noticeable divergence in performance across different regional markets. The East China and Central South regions performed strongly, becoming the main forces driving market growth; the North China and Northwest regions also continued to warm up, showing a positive trend; while the Northeast and Southwest regions experienced some decline.

Specifically, the average daily transaction volume of second-hand cars in East China was 0.0196 million vehicles, a 3.05% increase compared to the previous week. Major cities such as Hefei, Nantong, Nam Cheong, Shanghai, and Hangzhou saw significant increases in transaction volume this week. In particular, Hefei's transaction volume rose by more than 20%, indicating a noticeable increase in market vitality. Shanghai saw a 3.5% increase, although the growth rate has slowed compared to the previous week. However, the markets in Linyi and Xiamen still faced considerable pressure this week, with transaction volumes decreasing by 11.4% and 8.9%, respectively. Additionally, Jinhua's transaction volume also declined by 6.8% compared to the previous week. Overall, the second-hand car market in East China showed a good recovery trend this week, with most regions achieving growth in transaction volume.

In North China, the average daily Trade volume of used cars is 0.0025 million vehicles, an increase of 2.95% compared to last week, showing some recovery in market vitality. Beijing and Tianjin are the core cities in North China, and both markets have shown significant recovery this week, with a 2.8% increase in Beijing's Trade volume compared to the previous week and an 11% increase in Tianjin. Additionally, Langfang and Taiyuan also showed good recovery trends this week. In contrast, the markets in Shijiazhuang and Chifeng showed a significant weakening of vitality this week, with Shijiazhuang experiencing a decline of over 10% and Chifeng decreasing by 6.2%. Most other regions showed stable trends this week.

In Northeast China, the average daily Trade volume of used cars is 0.0022 million vehicles, a decrease of 2.14%. The Changchun market has been declining continuously, with a Trade volume decrease of 8.7% this week. The market vitality in Dalian has significantly improved this week, with a 6% increase in Trade volume. Moreover, cities such as Harbin and Jinzhou experienced slight downward trends this week, but overall fluctuations were small.

In Southwest China, the average daily Trade volume of used cars is 0.0153 million vehicles, a decrease of 4.75%. This week, most areas including Chengdu, Kunming, Lhasa, and Guizhou saw varying degrees of decline in the used car market. As the central city of Southwest China, Chengdu's Trade volume significantly declined this week, dropping over 15%; Guizhou also experienced a Trade volume decrease of more than 10%. In contrast, the market in Chongqing displayed strong resilience, with a Trade volume increase of 1.9% this week, maintaining growth momentum despite the overall downward trend.

In Central and Southern China, the average daily Trade volume of used cars is 0.0257 million vehicles, an increase of 3.47% compared to last week, reflecting a positive market situation. Looking at the performance of key cities, Guangzhou, Dongguan, Nanning, and Jiaozuo all showed varying degrees of increase in used car Trade volumes this week. Among them, the market in Guangzhou performed particularly well, with an increase of over 15%, significantly boosting market demand. Dongguan and Nanning also performed well, with increases of 8.1% and 6.8% respectively. In contrast, the used car markets in Wuhan and Changsha showed signs of fatigue this week, with Trade volumes decreasing by 3.8% and 6.3% respectively.

In Northwest China, the average daily Trade volume this week is 0.0012 million vehicles, an increase of 9.49%. Specifically, the Trade volumes in Wuzhong, Yulin, Xi'an, and Bazhou all increased this week. Notably, Wuzhong's Trade volume grew by 11.4% compared to last week, while Yulin’s growth rate exceeded 15%, demonstrating strong market vitality. In contrast, Xi'an's growth rate slowed down this week but still achieved a 2.5% increase. Additionally, although the Lanzhou market experienced a slight decline, overall fluctuations remained within a small range, indicating a relatively stable market condition.