Foreign car companies try water used car

Following the BMW, Audi, Mercedes, Jaguar, Land Rover, according to media reports, Lexus also launched a used car business. It is reported that the Lexus-certified used car business is an important part of its "2013 China target."

“In addition to promoting new car sales, the potential of the used car market is huge. Due to the problem of hedge ratios, used cars are more dependent on brands, and high-end car brand companies are more involved in used car business.” Auto Industry Analyst Zhang Zhiyong told the "Securities Daily" reporter that as early as last year's Beijing Auto Show, BMW had a dedicated display area for used cars, which shows its emphasis on the used car business.

Zhang Zhiyong said that in the future, the profit from new car sales will be getting thinner and thinner, and the profit behind new car sales will be even more impressive, such as vehicle maintenance, maintenance, and used car sales. “As the auto market becomes increasingly saturated, the new car's life cycle becomes shorter and shorter. The people may buy a car for a lifetime, but now it may be possible to change a car in a few years, and the cycle of change cars will be shortened, leading to the use of used cars. The situation is getting better and better. For some people with low spending power, buying a luxury car with a good car at relatively cheap prices is still quite attractive."

Used car "Blue Ocean"

Shen Rong, deputy secretary-general of the China Automobile Dealers Association, told the media a few days ago: “From January to April this year, the nation’s trade volume of used cars was 1,647,800, an increase of 8.04% compared with the same period of last year. The transaction volume was 88.497 billion yuan, an increase of 19.51 from the same period of last year. %.” He predicted that the second-hand car trade this year is expected to hit a peak. In addition, the bottleneck problem of cross-regional circulation has yet to be resolved, and the formation of a unified national market is a general trend.

"As the level of domestic residents' income rises, the level of household consumption also shows a rising trend. More and more consumers are pursuing mid-to-high-end products and high-quality products. Luxury cars with higher cost performance will become one of the main choices for consumers. Li Yuheng, a senior research fellow at CIC Advisors, told reporters that the used car market caters to the domestic consumer’s demand for inexpensive and high-quality consumption; on the other hand, it can also accelerate the sales and update of luxury cars; in addition, the development of used car business also has Facilitate brand manufacturers to improve profitability.

Lang Lixin, the deputy general manager of Lexus China, once said that China’s used car base is huge, and it will slowly be like the foreign market. There will be more and more people buying used cars. Considering the direction of market development, it is necessary to carry out brand certification of used cars. In addition, Lang Lixin pointed out that the development of branded used car business is very helpful to enhance and strengthen the brand value.

The early expansion of the used car business in China was BMW. According to Gu Wenlong, BMW's used car strategy director, this year BMW will continue to strengthen BMW's selection of used car brands, marketing and service networks. There will be more used car centers in the year. At the same time, the company will further increase the range of authorized distributors of used cars.

In addition, Ren Yukai, second-hand car manager of Audi Sales Division, also stated that this year will continue to promote Audi's used car brands, accelerate the development of the network, and increase the market share of the same brand replacement rate and used car sales.

Recently, at the first China Automotive Market Development Summit Forum, Wang Xia, Chairman of the Automotive Industry Committee of the China Council for the Promotion of International Trade, stated: “From January to April this year, domestic automobile production and sales exceeded 7 million vehicles, an increase of 13% year-on-year. The sales volume will exceed 20 million vehicles for the first time.” At the same time, he predicts that in a decade, China’s car ownership will become the world’s number one.

With the trend of domestic car ownership exceeding 100 million and continuing to increase, the prospects for the used car market are extremely promising. However, at present, the used car market is still developing slowly. Li Yuheng believes that the high price of second-hand cars has inhibited the demand for terminals, and poor distribution channels have also constrained the development of used cars. The use of luxury car brands to develop second-hand car business is still relatively high, and the non-standard taxation also makes it difficult for the used car market to develop rapidly.

“On the one hand, consumers in the first-tier cities still prefer to buy new cars; on the other hand, the prices of new brand cars are still high and consumers are more willing to choose new ones. In addition, the development of used-car retailers is still slow and cannot be sustained. The rapid development of the used car market, said Li Yuheng.

The market forced second-hand car prices

Since the beginning of this year, the government has severely imposed policies on official vehicles, which have had a great impact on the luxury car market. In the first quarter of this year, the growth rate of the luxury car market in China was only 8.34%, and the growth rate contracted seriously.

“In order to respond to the new changes in government procurement vehicles, the luxury vehicle’s discount rate has increased. The reduction in new car prices will squeeze the price space of other models and drive small fluctuations in the overall market price. At the same time, price fluctuations in the new car market will be linked. The price of used car market will change, especially the price of luxury used cars will be reduced." Lin Lin, deputy director of the first car network data center told reporters.

“In addition, the purchase restrictions and restrictions on travel policies introduced in various places will also affect the used car prices,” Lin Lin said.

Prior to this, Shanghai issued a "Several Opinions on Further Regulating the Use of Second-hand Cars in the City" to strengthen the standardization of the used-car trade contract and impose limit price control on the used car license. Subsequently, Shanghai began to implement the policy of transferring the used vehicle license plates for one year without transfer. “The introduction of the above policy will lead to the cancellation of the purchase plan by the original plan of purchasing the used car with the license plate transfer and repurchasing the new car, resulting in a decline in the trading volume of the local used car market.”

From April 9, Guangzhou began to seek opinions from all sectors of the community regarding the foreign car restriction system, which also means that Guangzhou will soon become the third city to implement the vehicle restriction system following Beijing and Shanghai.

The restricted-banking policy has caused many potential buyers who intend to go to nearby cities to abandon their plans to buy cars. This will inevitably affect the sales of used cars in Guangzhou and its neighboring cities. At the same time, many new car dealers have started to increase sales promotion efforts. As new car prices drop, so will the price of used cars.

Take the used car market in Beijing as an example. “The relevant auction data shows that before the purchase limit, the average price of the used car in the capital was about 60,000 yuan, and it fell to about 50,000 yuan after the purchase restriction, and it fell below 40,000 yuan when it bottomed last year.” Beijing Beichen Yayuncun Yan Jinghui, deputy general manager of the Automotive Trading Market Center, told reporters.