Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080622/article_364123.htm
Car plate price weakens
Created: 2008-6-22
Author:Jin Jing
THE cooling auto market has caused the price for a car plate in Shanghai to drop for a second consecutive month.
In the June auction completed yesterday, the average price for a private car license fell 1,100 yuan to 34,947 yuan (US$5,064), compared with 36,047 yuan in May, authorized operator Shanghai International Commodity Auction Co Ltd said.
The lowest successful bid also edged down to 33,900 yuan, a decrease of 500 yuan from a month earlier.
Analysts said the minor drop mirrored weaker market demand as a result of the retreating auto market over the past two months.
The latest price increase for gasoline and diesel may have further restricted customers' purchases, they said.
A total of 21,208 bidders joined in the competition for 7,700 car plates this month ?? 500 fewer than last month and the smallest quota offered by the municipal government since January.
The ground bidding price was unbroken until the last 10 minutes before the deadline for the first bidding phase.
A dealer surnamed Zhang said the price went up slowly because bidders were more rational now. This may also reflect that the price has received market acceptance among auto buyers.
A recent regulation that puts stricter requirements on bidders who want to transfer their car plates to others within one year of purchase may have scared-off profiteers, analysts said.
In the June auction completed yesterday, the average price for a private car license fell 1,100 yuan to 34,947 yuan (US$5,064), compared with 36,047 yuan in May, authorized operator Shanghai International Commodity Auction Co Ltd said.
The lowest successful bid also edged down to 33,900 yuan, a decrease of 500 yuan from a month earlier.
Analysts said the minor drop mirrored weaker market demand as a result of the retreating auto market over the past two months.
The latest price increase for gasoline and diesel may have further restricted customers' purchases, they said.
A total of 21,208 bidders joined in the competition for 7,700 car plates this month ?? 500 fewer than last month and the smallest quota offered by the municipal government since January.
The ground bidding price was unbroken until the last 10 minutes before the deadline for the first bidding phase.
A dealer surnamed Zhang said the price went up slowly because bidders were more rational now. This may also reflect that the price has received market acceptance among auto buyers.
A recent regulation that puts stricter requirements on bidders who want to transfer their car plates to others within one year of purchase may have scared-off profiteers, analysts said.
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