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The model of second-hand car trading contract in Hubei Province is expected to be introduced within this year. This is the latest news from the inaugural meeting of the Second-hand Automobile Dealers Association of Hubei Province last week.
On May 28, the Hubei Used Car Dealership Association was established. The first batch of more than 50 member companies involved second-hand car dealers, insurance companies, auction companies, auto repair shops, and auto 4S shops.
According to the person in charge of the Department of Commerce and Regulations Department of the Ministry of Commerce, the establishment of the association marks the progress of the used car industry from scratch and the gradual maturity from the market to the market. It will serve as a function of coordination, service, and shaping of the industry image.
Luo Jiwen, president of the association, said that the company safeguards the legitimate rights and interests of both sides of used car transactions, maintains market order, and promotes the healthy development of the industry.
At present, the association is drawing reference to the relevant laws and policies and the model contracts of second-hand vehicles issued by Beijing and Shanghai to draft a model contract for second-hand vehicles to apply in Hubei Province. The work will be completed during the year.
In addition, the association's annual work plan also includes the introduction of a series of "industry self-regulation rules", requiring members to establish a fair and just information exchange platform to fully meet the needs of the industry for information exchange.
Dialogue News Party
Interviewee: Luo Jiwen, President of Hubei Used Automobile Trading Association
What is the status of second-hand car trading in Hubei?
Luo: At present, the second-hand car trade in Hubei Province is relatively active. The annual growth rate of transactions is maintained at 20% to 30%, Wuhan is about 40%, and the transaction volume last year reached 40,000 vehicles.
Zooming in to the whole country, China’s second-hand car trade is in a period of rapid development. In some economically developed regions, such as Shenzhen, second-hand car transactions increase at a rate of 100% per year; Beijing’s second-hand car trading volume is more than new cars.
Compared with these areas, the development of second-hand cars in Hubei province is somewhat lagging behind, but this also precisely explains the broad prospects of the industry.
At present, what are the major problems with used car trading in Hubei?
Luo: There are more problems and more complex issues. The focus is on three aspects.
1. Lack of authoritative assessment agencies. The key link in the used car transaction is the evaluation of the vehicle's appraisal, which is also the basis of the transaction. However, it is relatively confusing at this stage, and the lack of third-party authority assessment agencies has caused buyers and sellers to have unequal information.
2. The legitimacy of many trading entities is questionable. The current second-hand car dealers can be said to have mixed eyes, and there are numerous "cattle" and "car dealers" on the market. There is a long-term vicious competition. In such a consumer environment, the buyer’s interests cannot be guaranteed.
3. High transaction costs. Due to the low quality of the employees, the lack of credit, and the lack of information flow, the efficiency of second-hand car transactions is currently low. On the other hand, this has virtually increased transaction costs. These costs are eventually passed on to consumers.
After the establishment of the association, what will be the specific work?
Luo: Because we have more problems, we need to step by step. Personally, I think that people must be the primary problem for the industry to develop in a healthy and orderly manner. With high-quality professionals, there is a normative basis for second-hand car transactions, and efficiency will be greatly enhanced.
Based on the above reasons, we decided to train the practitioners first, focusing on training a group of appraisers. In addition, we have introduced various talents for sales services and strengthened the division of labor in market operations.
On the other hand, we will actively absorb funds, including idle funds from auto 4S shops, real estate, home appliances and other industries. It is clear that its scale advantages and management advantages will directly promote the healthy development of second-hand car transactions, making used car transactions into the Standardization, specialization, and refinement, to achieve the transformation of the entire industry from labor-intensive to technology-intensive and capital-intensive.
Citizens will no longer worry about buying used cars