The sales of new cars hit a record high in Chinese market in 2009 and 2010. Based on the calculation that consumers change their cars every six to eight years, the used car market will usher in accelerated growth in the period of 2016-2018. It is estimated that the sales volume of used cars will reach 22 million in 2020, the same as that of new cars.

From January to November in 2015, altogether 7.2 million used cars have been sold in China. Despite this great amount of sales, the problem of the used car market is increasingly prominent, of which the core is a lack of a credible evaluation standard of the condition and the residual value of used cars.

A car’s residual value rate is the rate of the selling price of a used car to the previous purchase price of it after it has been driven for a certain number of years. No matter to new car buyers or to used car buyers, this rate determines whether they may suffer losses when they purchase cars in the future.

In Z-Park’s Big Data Day on December 12th, Shanghai Zhongtiao Information Technology Co., Ltd. released their findings together with fifteen other leading big data companies. In the afternoon, Mr. Zheng Xin, president of Shanghai Zhongtiao Information Technology Co., Ltd. and professor of School of Economics and Management at Tongji University (Tongji SEM), issued 2015 Brief Report on the Index of Car’s Residual Value in China (hereafter Index of Car’s Residual Value).

Index of Car’s Residual Value was compiled by 91survey.com, Shanghai Haistand Management Consulting Co., Ltd. and Tongji SEM, with part of the data support from their partners such as Che300.com and Shanghai Liyang Information Technology Co., Ltd. etc. Index of Car’s Residual Value, adopting a big data analysis on new car prices and used car prices both online and offline and based on vehicle certificates, models, parameters and configurations of cars, generated the data and rankings of the residual value of cars of different brands, series, models and years of usage, and such data and rankings can be used for various businesses including evaluating residual value, pricing, trading in, financing, and extending warranty.

Through the examination of the residual value of used cars, 91survey.com has also had the following rules and findings: the more cars of certain series or models in the market, the higher the residual value rate; an increase in the supply of used cars in the market will lead to a decrease in the price and the residual value rate of the cars; Japanese cars have changed the situation of having relatively low residual value rate; the lower the costs on maintenance, the higher the residual value rate. It is believed that Index of Car’s Residual Value will definitely become the compass of the development of the used car market.

During the research, 91survey.com got to know the prices of new cars from manufacturers and dealers, and the transaction prices of used cars from online used car trading platforms, used car dealers and used car trading market, and it integrated the models and VIN database, the district database and the car-owners database. These databases contain nearly 140,000 models, VIN for 150 million cars, and also the number of different models in each city, basic information of car owners, OBD driving behaviors, etc.

91survey.com hopes that the Index of Car’s Residual Value will improve the price-discovery mechanism of the used car market in China, establish a unified standard for evaluating residual value, and promote the efficiency of used car transaction. Through a careful examination and analysis of used car prices, Index of Car’s Residual Value will help to increase the transparency of the prices for consumers’ and dealers’ reference. It can not only help consumers to analyze and predict the change of the car prices, but also provide the basis for pricing buy-back transactions, finance leasing, used car finance and extending warranty.

 
91survey.com’s research into cars’ residual value has taken into consideration more than 400 indicators and various factors such as brands, market, policy, the use of cars, the condition of cars, maintenance, etc. It has innovated the application mode of residual value model based on car owners’ observation, residual value evaluation, residual value examination and the support of data and technology. It is such a careful analysis of data that has endowed Index of Car’s Residual Value with a high reference value.

Finally, Mr. Xie Peng, CEO of Shanghai Zhongtiao Information Technology Co., Ltd. indicated that the issued report was only a brief one on the index of car’s residual value in China and the full version of it would be presented in the Annual Meeting of China Auto Finance to be held in January 2016, which would provide a strategic guidance for consumers, dealers and manufacturers.

The article first appears in the following website: https://i.auto.ifeng.com/index.php?plg_nld=1&id=1051175&plg_uin=1&a=index&c=news&plg_auth=1&plg_dev=1&share=1&plg_usr=1&wap=1&plg_vkey=1&from=groupmessage&isappinstalled=0