The one-year-old car trade-in policy expired. Although the call for policy delays has come up one after another, it is currently inconclusive. According to reports, many places have thus ushered in the peak of car trade-in. As of May 24, 2010, a total of 106,000 vehicles were subsidized in the country, with a subsidy of RMB 1.4 billion, driving the consumption of new vehicles by RMB 12.6 billion. Among subsidized vehicles, passenger cars, large and medium-sized passenger vehicles and light-duty trucks accounted for 36%, 30% and 19% respectively. How does the heavy-duty truck market perform in terms of trade-in replacement compared to the boom in trade-in cars and passenger cars? This time, Lemon Tea House invited three heavy truck dealers to invite them to introduce the role and impact of the trade-in policy on the heavy truck market.
Lemon Tea Guest:
Li Xingguo: General Manager of Jinan Fuhualong Industry Co., Ltd., Dongfeng Commercial Vehicle Dealer
Ren Fengbao: General Manager of Henan Golden Avenue Automobile Import & Export Co., Ltd., Auman Heavy Duty Truck Dealer
Han Baofu: General Manager of Baotou Debang Trading Co., Ltd., Hualing Heavy Duty Truck Dealer
Moderator: Some people think that heavy trucks will be a bigger beneficiary of car replacement policies than passenger cars. There are three reasons to support this view. Firstly, the life cycle of heavy trucks is relatively short, generally 4 to 5 years. The number of scraps that need to be scrapped each year is relatively high. There are a large number of heavy trucks that do not meet the emission standards or are close to the retirement age. Secondly, after adjusting for the old-for-new policy, the subsidy for heavy trucks has increased from 5,000 yuan to 18,000 yuan, which has more than doubled and has become more attractive to users. Thirdly, from the beginning of this year to now, the heavy-duty truck market has been in a period of strong demand, and the continuously increasing transportation demand has brought users the power to change vehicles. What do you think of the above analysis? In actual work, how many people have received new users?
Han Baofu: Heavy-duty card users generally do not choose to trade in new products. I haven't received a user who wants to trade for a new one so far. I feel that heavy truck users do not attach great importance to this policy. The heavy truck is a kind of product with strong vitality. The elimination rate is not high. The main reason is to meet the transportation demand, not to say poor vehicle comfort, poor fuel economy, and vehicle maintenance frequency. High must be eliminated. These three conditions are not sufficient for heavy trucks. Unless the user chooses another industry, it is necessary to change the car if the existing vehicle is to be sold or if the goods are not the same due to changes in the supply.
If you want to eliminate existing vehicles, users prefer to sell used cars. The price of second-hand cars has a certain market pattern, which changes according to the operating conditions of the market. In addition, the price of second-hand cars is also related to factors such as the service life of the vehicles and the transportation revenue of the market. The price is not fixed.
Ren Fengbao: There are two types of replacement for heavy-duty trucks. One is the trade-in between dealers and users. For example, a heavy truck that has been running for 3 years, the user wants to buy a new car, and the old car is used to deduct the cost of the new car. This mode of operation also exists in the passenger car market, but it has not been done. The other is the trade-in exchange that the country introduced last year, scrapping old heavy trucks to buy new ones.
I haven’t encountered any users who have traded for the past year. As far as I know, other dealers rarely carry out this business. The residual value of heavy trucks is relatively high. If they are scrapped, they can sell a lot of money even if they sell scrap iron.
The short life cycle of the heavy truck does not mean that the service life is short. It means that the cycle for a single user is relatively short. For example, in a new car, the user intends to sell it within 3 to 4 years, and then the next owner opens the car. Afterwards, the owner turns down a few years later. Therefore, the owner of the car was not long before the car was opened, but the car was not idle. Therefore, even though the car produced in 2000 has only recently entered the retirement period, and the heavy truck market was not large at the time, the heavy truck market started to fire in 2004. At that time, the heavy trucks that entered the market were only used for 6 years. It was not a long time, and it was not surprising that there were fewer new traders.
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