license plate price hit new record in Shanghai

Shanghai has held its first license plate auction of 2010. The average price hit a new high since January 2008. About 19 thousand car owners participated in the auction.

The average price is over 38 thousand yuan, about 700 higher than last month. The lowest price was 37,800 yuan. Analysts say the record is due to anticipation of the coming Spring Festival.

Shanghai Reisident, said, "I don't care about the car plate price because I have to buy it anyway."

According to the Shanghai Information Center, cars with engines under 1.6 liters enjoyed stimulus policy subsidies or tax cuts in 2009. These cars sold well and the trend will continue in 2010.

Mr. Xu, Used Car Salesman, said, "Car owners take advantage of the stimulus policy and buy a new car before their old one can't meet the new emission standard."

The next monthly auction will be on February 27th.