Core Insights - The overall automotive market in China is transitioning from a low season to a peak season, but faces challenges due to weather and the concentration of new car launches [2] - The used car market shows a steady upward trend, with an increase in transaction volume both month-on-month and year-on-year, particularly in the last week of August [2][3] - The demand for family vehicles is expected to rise with the approaching school season, providing strong support for market growth [2] - The second-hand car replacement rate is anticipated to improve as the market enters the traditional sales peak in September [2] - The price stability in the new car market is creating a favorable environment for the continued development of the used car market [2] Used Car Market Performance - In August 2025, the total used car transaction volume reached 1.7074 million units, with a month-on-month increase of 2.80% [3] - The transaction volume for basic passenger cars was 953,000 units, up 3.13% month-on-month and 6.88% year-on-year [3] - The MPV and crossover passenger car segments performed better than others, with significant year-on-year growth [3] Vehicle Age and Pricing Trends - In August, the most traded used cars were aged 3-6 years, accounting for 42.36% of transactions, although this was a decrease from the previous month and year [4] - The average transaction price for used cars in August was 62,400 yuan, down 140 yuan from July and 320 yuan from the previous year [5] - The proportion of used cars aged over 7 years has increased, indicating a shift towards older models in the market [4] New Energy Vehicle (NEV) Market - In August 2025, 148,400 used NEVs were traded, representing a month-on-month increase of 3.9% and a year-on-year increase of 59.6% [8] - The total NEV transactions from January to August reached 978,000 units, a 41.8% increase compared to the same period last year [8] - The market share of SUV models in the used NEV segment is growing, while A0 and A-class models are seeing a decline [10] Inventory and Turnover Rates - The average inventory turnover cycle in September was 46 days, unchanged from August, indicating a need for cautious inventory management among dealers [11] - The turnover rate for used cars reached 30.85% in August, with a total of 526,700 units transferred, marking a 4.28% increase month-on-month [10]