news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

[global times special correspondents in the united states, japan, and germany feng yaren, pan xiaoduo, and aoki] editor's note: since the second half of 2024, the policy of "trade-in" for automobiles has been implemented nationwide at an accelerated pace. as the world's largest automobile producer, consumer, and exporter, china has an incomparable supply of vehicles. under the wave of "trade-in", the experience of used car handling in developed automobile markets in the united states, japan, and europe may provide us with reference.

the u.s. auto recycling industry is large and mature

keywords: developed used car business chain

in recent years, annual sales of new cars in the united states have been around 16 million, while annual sales of used cars have remained at around 40 million, highlighting the important position of used cars in the u.s. auto market.

as a "country on wheels", the united states' huge used car processing market supports a large and mature automobile recycling business network, involving automobile recycling, refurbishment, and parts and body disposal. each segmented commercial link is aimed at maximizing the utilization value of used cars.

this process often starts with the dismantling of old cars. when a car reaches a certain age, it will be sent to a car recycler or "car salvage yard" by the owner. here, the vehicle is carefully disassembled, and the most valuable parts are refurbished and sold as second-hand parts. the engines and transmissions with the highest utilization value are reused to repair other cars. the remaining structure of the car (including a lot of metal) is recycled in the name of scrap steel. at present, the automotive recycling industry has become one of the largest sources of recycled steel in the united states. including metals such as steel, aluminum and copper, about 86% of the materials in the vehicle are melted and reused.

lkq, a us auto recycling giant, plays a vital role in this process. as one of the major suppliers of recycled auto parts in north america, lkq and related companies not only provide vehicle dismantling services, but are also responsible for the processing and sales of recycled auto materials. in many areas of the united states, you can see huge lkq old and scrapped car storage yards.

however, not all old cars are sent to recycling yards. a study by s&p global automotive in the first half of this year reported that the average age of vehicles in the united states is 12.6 years, an increase of more than 14 months from 2014. if only passenger cars are considered, this number will jump to 14 years, while the average use time of a new car is about 7 years. used cars in good condition are generally resold. with a little selection, car owners can "find" a used car that is about 5 years old and continue to drive it for more than 15 years, but usually only need to pay less than half the price of a new car. since many states in the united states do not set restrictions on the age of cars on the road, a used car worth $1,500 is very attractive to many low-income families. at present, online car sales platforms such as carvana and vroom dominate the channels for american consumers to buy and sell used cars. car buyers can choose cars just like shopping on e-commerce platforms such as amazon.

the well-developed used car certification system is another reason for the prosperity of the used car market in the united states. first, before buying a used car on the market, car owners usually log in to the third-party certification agency carfax to check the vehicle history report of the registered car. second, most dealers of american car brands provide certified used cars, which have been inspected by the factory and have more reliable warranty records.

due to price competition among new market players and global supply chain shortages during the pandemic, which prevented a large number of customers from purchasing new cars, the transaction volume in the used car market in the united states has increased significantly in recent years. in 2021, the shortage of semiconductors led to insufficient global new car production, and the used car market in the united states even saw a shortage of supply. data shows that the average selling price of used cars in the united states in 2021 jumped to $26,700, more than $4,000 higher than in 2020, and even reached nearly 70% of the average selling price of new cars that year.

another way the united states deals with old cars is to export used cars. according to the international trade administration, millions of used american cars are shipped abroad every year. these vehicles are usually sold at auctions in the united states and then shipped out to sea, where they have a "second life" in major importing countries such as nigeria and mexico. (feng yaren)

japan implements "auction system" for used car sales

keywords: official association endorsement

in japan, it is rare for a new car to be scrapped by the buyer. according to statistics from the japan motor vehicle inspection and registration information association, most car buyers will replace their cars within 10 years. the proportion of consumers who replace their cars within 1 year, 3 years, 5 years, 7 years and 10 years after purchasing a new car is 1%, 10%, 19%, 18% and 28% respectively, and the average car ownership period is 7.1 years. among them, the adjustment of car taxes and fees is a key factor that prompts japanese people to change their cars. a special reporter of the global times did some calculations: 13 years after the purchase of a new car, the annual motor vehicle tax and the motor vehicle weight tax paid during the vehicle inspection will change. the motor vehicle tax has increased by 15%, and the motor vehicle weight tax has increased from 4,100 yen to 5,700 yen per 500 kilograms (100 yen is about 4.9 yuan). it would not be cost-effective if you don't replace your car at this time.

the constant demand for replacement has kept the used car market in japan on the rise. in 2023, japan's used car retail sales were about 2.601 million units, with an average purchase amount of 1.628 million yen. this momentum continued into this year. according to data released by relevant japanese industry associations, due to the suspension of shipments by japanese automakers due to data fraud, new car sales in japan in the first half of 2024 fell 13% from the same period last year. weak new car sales and the depreciation of the yen caused the average transaction price of used cars in japan to surge 14.2% in june from the same month last year, setting a record high. in response to the shrinking new car market, dealers under japanese automakers have increased used car outlets and attracted customers by increasing the conversion value of used cars in new car sales.

in addition to the domestic market, japanese used cars also have a wide influence in international trade. since 2015, the export volume of japanese used cars has stabilized at about 1.2 million vehicles per year, and it has been the world champion of used car exports for many years. jiang jingyi, executive director of the japan used car export association and ceo of japan g-7 holdings group, told reporters that the export of japanese used cars began as early as the 1970s. the method at that time was relatively old-fashioned. photos of the car were mailed to the importing country, and then the customer went to japan in person to see the car, negotiate, and then ship it away. it was not until 1996 that the japanese ministry of commerce established the used car (used car) export association. the formation of this association was initially a selection of backbones from vehicle manufacturers by the government. after the market matured, exporters became the backbone of the association. exported japanese used cars must pass the quality grade certification provided by the association, which is equivalent to the vehicle having the "quality endorsement" of the japanese auto industry.

at present, japan's used car sales are implemented through an "auction system". after the vehicle information is published on professional car purchase websites, it can support customers from many countries overseas to "bid". although facing the challenge of china's rapid increase in used car exports in recent years, some international trade practitioners said that the used car online auction market in south korea, china or europe and the united states has not yet been fully established, and japanese people are generally more cautious when driving cars. in addition, japan's road conditions are relatively ideal, there are few extreme climates, and the vehicle conditions are generally very good. these are all the advantages of japanese used cars. (pan xiaoduo)

germany's second-hand electric car "trade-in" faces challenges

keyword: expensive

in germany, it is an obligation for car owners to deal with used cars. for those old cars that can no longer run normally, car owners must recycle them. a staff member of the german automobile club adac told the special correspondent of the global times that if car owners throw their old cars on the roadside, they will be fined hundreds of euros. "the way to deal with used cars in germany is that the car owners can sell them on the market by themselves, or the car dealers can "trade in old cars for new ones" on their behalf." wolf, the head of a car dealer in berlin, germany, told the special correspondent of the global times. according to a survey by the used car platform autoscout 24, nearly 80% of german car buyers regard "trade in old cars for new cars" as the preferred way to buy cars. the car sales store where wolf works currently advertises that customers who buy mercedes-benz e-class t sedans can not only use the old car to offset the value, but also receive a reward of 1,500 euros. reina, a customer who was consulting in the store, told reporters that she was considering using the "trade in old cars for new cars" model to buy a car, which can not only save a sum of money on car purchases, but also reduce the trouble of dealing with used cars by herself.

according to german magazine automotive, with the accelerated popularity of electric vehicles, the second-hand electric vehicle market in germany has almost tripled since 2022. however, many german car dealers are negative about acquiring second-hand electric vehicles. wolf explained that the biggest problem is that the market recognition of second-hand electric vehicles is not high, making these cars difficult to sell. since the german federal government stopped subsidies for electric vehicle sales at the end of last year, market demand has declined. a survey by german business magazine kfz-betrieb showed that more than two-thirds of car dealers are unwilling to accept second-hand electric vehicles from customers.

the high price of second-hand electric cars is also a major reason. the reporter's friend henry recently took a fancy to a second-hand electric car of a german brand, but finally gave up the purchase plan. after consulting many car dealers, he found that the price of the second-hand electric car was far beyond his imagination. according to a survey by autoscout 24, the average price of the second-hand electric car in june was 30,077 euros, which was even 4,000 euros more expensive than the second-hand fuel version of the same model. battery quality is also a reason. henry said that the battery is the core component of electric vehicles. although most manufacturers provide an 8-year battery warranty, he is not clear about the "health" of the battery.

german chancellor scholz announced in december 2021 that by 2030, there should be 15 million electric vehicles on german roads. german automotive economist kessel told reporters that this goal would be utopian without a functioning second-hand electric vehicle market. kessel said german automakers are taking special plans to support the second-hand electric vehicle market. in the future, germany will further improve the sales and recycling network of second-hand electric vehicles. (aoki)