The Zhitong Finance App learned that on May 23, according to data from the China Automobile Dealers Association, in the third week of May (May 13 to May 19), the average daily trading volume of the used car market was 60,300 vehicles, down 5.53% from last week, and 8% compared to the same period in April. The average daily trading volume of the used car market continued to decline in May, showing insufficient demand for three consecutive weeks. Although prices in the new car market gradually stabilized and the wait-and-see sentiment among consumers in the early stages abated, this change did not effectively translate into actual purchasing power. According to current market trends, the volume of used car transactions is expected to reach 1.55 million units throughout May. Compared with 1.5 million units in the same period last year, only a slight increase of 3% was achieved, and the market growth rate is further slowing down.

Weekly used car trading trends in January and May

Note: The trading volume is calculated over 7 business days

In the third week of May, the used car market traded an average of 60,300 vehicles per day, down 5.53% from last week and 8% from the same period in April. According to comparable statistics, from May 1 to 19, the number of used car transactions was 820,000 units, a decrease of 12% compared with the same period in April. The effect of the May Day holiday in driving the used car market growth is not obvious; it is still hovering in a sluggish range.

The average daily trading volume of the used car market continued to decline in May, showing insufficient demand for three consecutive weeks. Although prices in the new car market gradually stabilized and the wait-and-see sentiment among consumers in the early stages abated, this change did not effectively translate into actual purchasing power. According to current market trends, the volume of used car transactions is expected to reach 1.55 million units throughout May. Compared with 1.5 million units in the same period last year, only a slight increase of 3% was achieved, and the market growth rate is further slowing down.

Judging from the car supply situation, the car supply is currently relatively abundant, but prices are below the same period. Research has found that many models in the store are still slow to sell, and it is expected that the inventory cycle in May will be extended. The off-season for transactions in the used car market has been brought forward from June in previous years to mid-late May. Dealers should prioritize inventory and recover funds to ensure a smooth end of the June and July off-season.

II. Regional analysis of the used car market in May

Judging from the trading situation in various regions, the overall used car market declined this week. The average daily trading volume in the country's six regions all showed a downward trend. In particular, the decline in the northwest, central and southern regions was quite obvious this week.

East China, as an important region for used car trading, had an average daily trading volume of 171,000 vehicles this week, continuing to drop 4.35% month-on-month. The volume of transactions showed a downward trend for four consecutive weeks. Major cities such as Hefei, Nantong, and Jinhua all saw significant declines in trading volume this week. As the economic center of East China, Shanghai's used car market declined by more than 20% this week. While the overall market is cold, there are also some cities that have performed relatively well. Linyi and Hangzhou increased compared to last week. Linyi increased by more than 10% this week.

The average daily trading volume in North China was 0.26 million vehicles this week, down 5.04% from the previous month. Specifically, the volume of used car transactions in Tianjin, Taiyuan, Chifeng and other places dropped significantly, with month-on-month declines of more than 20%. In contrast, although Beijing also saw a slight decline in used car trading volume this week, the decline was narrower than last week, at only 2.1%. Shijiazhuang has performed well in the used car market recently, with an increase of more than 15% this week.

After two weeks of continuous recovery, the used car market in the Tohoku region showed a slight adjustment. The average daily transaction volume was 0.22 thousand vehicles, down 5.6% from the previous month. Both Jinzhou and Dalian saw double-digit declines in used car transactions this week. Changchun's decline this week was also close to 10%.

The average daily volume of used cars traded in the southwest region was 12,000 units, down 4.25% from the previous month. Judging from the decline, it was the smallest drop in the entire six regions. The used car market in Yunnan declined significantly this week, down 15.2% month-on-month. Guizhou is down 5.7% from last week. As the economic centers of the southwest region, Sichuan and Chongqing also showed a slight downward trend in trading volume in these two regions this week.

The average daily volume of used cars traded in the central and southern regions was 25,600 units, down 6.85% from the previous month. Looking at key cities, major cities such as Changsha, Wuhan, and Jiaozuo experienced significant market adjustments this week, and there was a clear decline in transaction volume compared to the previous week. Guangzhou, Dongguan and other places also saw slight declines this week. Although the decline was not significant, it also reflected a decrease in market activity. The used car market in Nanning performed well this week, with a month-on-month increase of 8.3%. This is likely due to local market marketing strategies, policy support, and increased consumer demand for car purchases.

The average number of used cars traded in the northwest region was 0.09,000 units per day, down 7.62% from the previous month. This week, the used car market in the northwest region showed a clear adjustment. The trading volume of Lanzhou, Xining, Yulin, Xi'an, Bazhou and other places all showed significant declines. Among them, Lanzhou, Yulin, and Xining all dropped by more than 15%.

Taken together, consumer demand for car purchases fell short of expectations in May. This year's May Day holiday was not clearly driven by the growth of the used car market. The off-season for used car market transactions has been brought forward from June in previous years to mid-late May. It is recommended that dealers should prioritize inventory and recover funds to ensure a smooth transition during the off-season in June and July.