From the “cross-provincial handling” of used car transaction registration and the “electronic” file transfer implemented last year, to the cancellation of the national fifth-hand car relocation restriction implemented this year, to the separate transfer registration implemented from October 1 Policies such as endorsement and issuance of temporary license plates have formed a set of policies to promote the development of the used car industry, and have broken through the key blocking points in the national circulation of used cars.
The latest data released by the China Automobile Dealers Association showed that the transfer rate of second-hand cars in September was 27.21%, an increase of 0.3 percentage points from August. Since the low point in April this year, the indicator has been rising month by month, and cross-regional circulation has become a new bright spot. It is expected that the national second-hand car transaction volume is expected to jump to 20 million this year . Only after the National 5th National Relocation Restriction is lifted nationwide, the range of optional vehicle sources for users will directly expand by 6 to 10 times.
Used cars occupy a key position in revitalizing the stock in the entire automobile circulation, because more than 40% of the people who buy new cars belong to replacement users . If the flow of used cars is not smooth, it will be unfavorable for potential replacement users to purchase new cars. Therefore, vigorously promoting the standardized and healthy development of the used car industry is of great significance to boosting the overall sales of new cars, and also helps to promote the formation of tiered consumption and circular consumption in the domestic auto market.
Although further recovery of used car transaction growth is imminent. However, in the field of used cars, there are still some problems that need to be solved urgently.
Distribution system meets new test
In the process of development of second-hand cars in China, the situation of “small, scattered and weak” in the industry is prominent . A report pointed out that the main structure of China’s second-hand car business enterprises is still dominated by single dealers, accounting for 88%, a decrease of only 10 percentage points compared with 98% in 2015; more than half of the enterprises are mainly individual industrial and commercial households. The venues are mainly concentrated in the trading market, and only 20% of enterprises have independent exhibition halls; in terms of the scale of enterprise income, 82.6% of used car dealers have an annual operating income of less than 1 million yuan.
Limited by the operator’s capital and scale, the overall used car market operation lacks standardization, and the dealers are limited to the local market, making it difficult to form brand influence. The implementation of the new used car policy may accelerate the industry reshuffle.
Industry reshuffle is an inevitable trend. In the past many years, the used car market was managed by assets, which was inconvenient for large-scale circulation. Now a separate endorsement is implemented, the commodity attributes of used cars are revealed, and the expansion of the distribution scale is no longer restricted. In addition, in the past, used car transactions, commodity flow, capital Streams do not match, limiting business growth. The improvement of the policy system will accelerate the transformation of used car dealerships.
Not only that, due to restrictions on relocation in the past, high-quality car sources from first- and second-tier cities were not flowing smoothly to third-, fourth-, and fifth-tier cities, resulting in a mismatch between supply and demand. Abolishing the move-in restrictions on small non-operating second-hand cars that meet the National V emission standards nationwide is equivalent to merging the previously divided small markets into a unified large market, with optional vehicles and car buyers. The number will increase dozens or hundreds of times, which will bring about a huge increase in transaction volume.
National market competition will make branded used car dealers stand out. The used car industry will undergo major changes, and large-scale dealerships will rise rapidly, driving the branding process of the industry . Branded dealers can not only strengthen consumers’ cognition faster, but also take advantage of scale and capital to accumulate advantages in vehicle source acquisition, vehicle guarantee, after-sales service, etc., and occupy more and more market shares. The “Matthew effect” will begin to manifest.
Online sales become a new growth point
In addition to branding, networking is also the development trend of used car dealers. At present, the popularity of short videos and live broadcasts has made car dealers smell more business opportunities. Data shows that short video platforms and automotive professional platforms are the main ways for users to understand and watch car live broadcasts. Short video platforms account for more than 80%, and automotive professional platforms account for more than 50%.
For used car dealers, the online live broadcast room breaks the time and geographical restrictions and reduces the cost of customer acquisition. Through live broadcast, it can more intuitively show the car condition to users and reach the core demands of consumers. The normalization of live broadcast has become the industry. consensus.
Many used car dealers have completed the transition from offline to online sales. Take a used car dealership on a short video platform as an example, it has gained 800,000 fans through live broadcast. The dealer’s recent second-hand car live broadcast peaked at over 20,000 people online, with over 150,000 likes and 400,000 views, which directly contributed to the transaction of nearly 100 second-hand cars.
Short video and live broadcast platforms break through the geographical restrictions of economic activities and improve the economic participation of individual users in society. With the full circulation of second-hand cars and active off-site transactions, live car sales are expected to help the second-hand car market achieve a new balance of supply and demand and become a new growth point in the second-hand car market. The standardized development of used car e-commerce will also comprehensively promote the online transaction of used cars.
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