Loan on zero percent down payments is also provided, however in such cases, rate of interest charged has increased in 2017. Used vehicle finance penetration in China has increased from 2016 to 2017. Major companies which provide used vehicle financing services in China are 100credit. co, Pingan Bank, Weizhong Bank, Xin, Ant Financial, DBS, Hong Leong Finance, May Bank, Tokyo Century Leasing, United Overseas Bank, Pahouche and many others.
Competition Scenario –( Online Channel):
Major companies in used vehicle market in China are Guazi, Uxin Group, and Renrenche. Guazi has comprised of the maximum share in the sale of used vehicle in China from online channels during 2017. On the other hand, Uxin Group has comprised of the second highest market share in sale of used vehicle during the same year. Renrenche has been accounted for the third highest market share in the sale of used vehicles during 2017. These three companies cover majority of the total sales of used cars from online channels during 2017. Online used vehicle companies compete on various parameters such as the number of cities covered, providing value-added services, performing number of quality checks before listing vehicles and portfolio of Vehicles. They provide various services such as vehicle inspection, consultancy services, financing and insurance of Vehicles, door to door Vehicle delivery services, transfer of Vehicle registration and after sale services.
Guazi provides its services in more than 200 cities of China whereas Uxin Group has more than 200 offline stores to provide after sale services to its customers. Renrenche has a presence in over 80 cities in China. There are various business models prevailing in the online used vehicle market of China such as C2C, B2C, C2B, B2B, and C2B2C.
Future Outlook and Projections:
By Volume: It has been expected that there will be a reduction in average replacement age of vehicles in china. This will lead to increase in average ticket size of vehicles. Moreover, online penetration in the used vehicle market is expected to maintain the growth trend till 2022 showcasing maximum potential to grow. Online companies such as Guazi are focusing to expand its portfolio of services by expanding into used vehicle finance. Renrenche has planned to open multiple offline stores by 2018. In China, sale of used vehicles through financing is expected to reach up over 13 million units by 2022,
Key Topics Covered in the Report China Used Vehicle Market Size( 2012-2017) China Used Vehicle Market Overview