Used car trading platform Tutuche has experienced appraisers run the cars through 200+ tests, determining their safety, market value – improving a messy, fraud-ridden market.
Why
Information asymmetry, gap
Without the information owners/sellers have, potential buyers cannot ascertain a used car’s true value.
Costly middlemen
Stores or agencies that normally handle used car sales could earn commission of 30–50%.
“Generation Internet” consumers
Consumers are increasingly turning to the Internet to compare prices and services.
Market
29 million
Projected number of used cars traded in China in 2020, from 9.42 million in 2015. In March 2016, the Chinese government scrapped restrictions on cross-city circulation of used cars.
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