Eliminating Update Programs Causes Second-hand Car Price in Beijing to Decline

Beijing's used car prices showed a downward trend. From August 1, Beijing officially implements the "Relevant Plan for Further Promoting the Dismantling and Renewal of Old Motor Vehicles in the City". According to regulations, when the owner of the vehicle replaces an old motor vehicle over 6 years old, he will receive a subsidy of 2,500 to 14,500 yuan. For the owners of old cars purchased after the elimination of new cars, they will also receive corporate awards ranging from 2,000 yuan to 12,000 yuan for redemption. The policy has stimulated the speed of the relocation of used cars and caused the decline of used car prices in Beijing.

According to Chen Youyi, marketing director of Yayi City, it is said that since the introduction of the subsidy policy, many car owners with more than six years of age will have to attach a “must move” item. It is reported that the general family car can obtain a government subsidy of 4,000 yuan for the relocation, and the second-hand car market is also driving down the price of such a subsidized old car by 4,000 yuan.