With the rapid development of China's auto market, used car market, consumers are more and more attention. Department of Commerce focused on the 255 second-hand car market statistics show that in 2006 China used car trading volume 1,965,900, an increase of 315% over the year car sales growth. The rapid growth of used-car market and the consumer environment has improved, suggesting that consumption of second-hand car entered a new stage. Market potential is gradually emerging in developed countries is usually second-hand car trading volume was then 2-3 times the amount of new car transactions, and various types of car sales in China last year was 7.238 million and 7.184 million, less than the number of used car sales new car sales one-third. Second-hand car market potential in China is beyond doubt. According to the China Automobile Dealers Association statistics, this year used-car market in China is growing rapidly, 1-May cumulative second-hand car trading volume nationwide was 80.5 million, an increase of 18.36%. Although the growth rate slowed down last year, but the used car market transactions are still active, especially given the peak car sales in previous years, entered the auto market this year, the era of mass transfer is expected for a long period of time, used car market will grow steadily. Letter to a survey by Xinhua, 71 2% of the owners choose to replace the vehicles using the car 3-5 years, of which the most concentrated use of 5 years, the average transfer period is 5-6 years. Most of the owners of vehicles abandoned in the car before the approach to second-hand car. Currently in Beijing and other active trading market for cars, has begun to show the potential of second-hand car, used car trading volume and the proportion of new car sales are steadily rising. According to the China Automobile Dealers Association, the person in charge of Beijing during the first half of this year sold 170,000 used cars, and the proportion of new car sales reached 0.85:1, while the ratio was 0.54:1 in 2005. Innovative trading patterns since October 1, 2005, "second-hand car circulation management approach" after the official implementation of second-hand car trading patterns are a huge change. In the interview, Department of Market System Development Director Chen Yue Hung summarized as follows: by a fair trade-style single market the brand to a variety of business transactions and changes. Transaction model innovation as a product, brand second-hand car appeared to be from a widespread concern in the community. In recent years more and more car manufacturers have launched their own brand of used cars, such as Shanghai GM "Honesty new used car" Audi "AAA second-hand car", Guangzhou Honda, "the joy of used cars," and so on, some large-scale second-hand car distribution companies are to build the brand used-car efforts. An Automobile Trade Co., Ltd. Guangzhou Hua Wang Xudong, deputy general manager of that in good faith as a symbol of the 4S shop business model used cars will rise rapidly in the last two years, and in the used car business to seize market share, increasing the proportion of chain of used car auction at the same time foreign companies are operating in the country will soon be paving their own networks. "The traditional second-hand car market share will face a strong squeeze of the situation, in order to survive, or face-lift, standardize operations, either by extrusion, eliminated." Concern that the constraints due to various reasons, most of the current used car brand is still its infancy, awareness is low, serious problems of higher operating costs of its development and growth. How to get out as soon as possible used car brand confusion, into the rapid development, has become the used car industry, the key to development. In this regard, the State Administration for Industry and Deputy Director of Market Regulation Li Xiao-wide have three suggestions. First, automobile manufacturers should brand used cars and new car sales as a mutually reinforcing link to look at, "car replacement may not only become a new profit growth point, but also to promote new car sales." Second, the automobile manufacturers to increase brand propaganda used car, used car sales while the brand should also be promoted as the main business to make the brand to expand used-car brands as a powerful means of influence. Third, the auto shop operators to expand the business scope of 4S, the 4S shop car replacement as an important business to deal with. 4S shop when someone questioned whether the right of distribution of second-hand car business, Li Xiao-wide, said, "actually" used cars in circulation management approach "does not limit the provisions of 4S stores in the distribution of car replacement to carry out the business." Trading is expected to improve the integrity of a fast-growing auto market, must be built on a solid flow of used cars. However, second-hand car trading our country is facing a "good faith" problem of asymmetric information in the transaction process, the lack of relevant industry standards, car contract hidden traps, used cars and assess the randomness and so on, are seriously disturbed the normal flow of a used car. Should appreciate that, as China increasingly sophisticated legal system and market supervision has been strengthened, used car trade credit system is expected to be improved. According to Li Xiao-wide revealed that, in order to regulate second-hand car transactions, according to "used cars in circulation management approach", the State Administration for Industry and has studied the development of a "second-hand cars Contract Model Text", ready to use in the recently released implementation. This will be conducive to safeguarding the legitimate rights and interests of consumers, used car, used car trade to promote good order of the formation. Used car transaction process for the most critical part of the ---- corporate integrity issues, said Li Xiao-wide, the current system of industry and commerce administration has begun the implementation of enterprise credit classification regulation, all kinds of enterprises are gradually divided into four types according to credit status, and credit status of enterprises to the public, the focus of enterprises with poor credit monitoring and behavior restrictions. "The establishment of such a system can effectively understand and master the credit status of enterprises, to facilitate the supervision of the enterprise to promote used vehicle operators to improve their credibility, enhance their competitive ability, is conducive to safeguarding the market order, thus contributing to second-hand car market prosperity and development. "