Guangzhou: Following the enforcement of a transport regulation in April 2004 restricting motorbikes from certain sections of road during peak hours, second-hand car transactions did not show the immediate surge that was expected.

However, at a second-hand car transaction event hosted by the South China Automobile Transaction Centre in May 2004, 260 used cars priced at 100,000 to 200,000 yuan (US$12,000 - 24,000) were sold within seven days, showing the big market potential in Guangzhou.

Beijing: It is predicted that the nation's capital is entering an age of "changing your car for a new one" which will help create a huge used-car market.

Two factors contribute to the trend: firstly, new car models continue to appear and their prices continue to drop; secondly, the enforcement of a policy in the second half of 2004 restricting the reaches of environmentally unfriendly cars has led to an immediate outflow of used cars from the city. Given that the prices of used cars dropped by 3 per cent on average in 2003, the number of second-hand car deals in 2004 was expected to reach the number of new car deals.

Shenzhen: Used car replacement events hosted by a few car dealers have helped the market to flourish. However, the Shenzhen market was reportedly plagued by many problems such as incorrect price appraisals, complex transaction procedures and unknown origins of cars. Car dealers such as those from Shanghai were said to be advocating standards and regulations in Shenzhen, in order to regulate the market.

Chengdu: Since the first car replacement event, held at the end of 2003, second-hand cars have become a focal point in Chengdu's car market. Yet the rapid increase in used car transactions in early 2004 was soon curbed by a shortage of supply.

Nanfang Daily reported that few local car dealers could bring in more than 20 cars a month, mainly because they tended to keep down prices.

Wuhan: The second-hand car market in Wuhan has continued to develop in recent years. Yet, in a way similar to Shenzhen, the market is plagued by a number of problems due to a lack of regulation.

In response to a rising number of complaints, a set of rules on used-car transactions were implemented in May 2004, stipulating what should be included in a transaction contract. (Star News)