New Rule on Car Purchases Helped Cool Market Down

New Rule on Car Purchases Helped Cool Market DownA local salesperson from Dongyi Auto Market in Luohu has been busy handling purchase orders this week for vehicles orders that were made before the car purchase limit took effect. She still remembers the scene last December 29 the day the limit took effect when customers scrambled to make purchases after the rule took effect.

Just before the policy, the new cars were introduced to clients then pass through sales procedures and test drives all day. But after the policy was implemented the auto market cooled down and many second hand car dealers are looking into finding new business opportunities. Based on a new estimation the cost of a license plate in Shenzhen has increased by 70,000 yuan. And due to loss of revenues there will be a possibility of letting go of some salespersons and to seek for a new profession.

Another salesperson said that there are hundreds of vehicles being stored in garages that were ordered in advance, and as of the moment they are not selling any new cars ant they are completing the procedures for the previously purchased vehicles. Then by February, car agencies will be making new arrangements that are based on lottery results.

Based on the new policy, the city capped the number of new vehicles to be sold at 100,000 a year this includes the 20,000 electric vehicles. Car buyers need to obtain license plates for the cars they are planning to buyby either bidding in auctions or joining lotteries.

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