The message that consumers pay particular attention to when buying a car is: Does the car retain its value?
The result that car owners are particularly concerned about when selling cars is: How much can I sell for this car?
The question that car companies will consider when launching a new car is: How is the price of this car more appropriate?
Dealers often struggle when selling cars: how much is the terminal price of this car?
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All of the above is related to a hot topic in the automotive industry - the retention rate.
Why are the industry and users so concerned about the retention rate of cars? The reasons are not complicated. The retention rate is positively correlated with the brand influence (word of mouth, sense of identity, premium ability, technical strength, etc.), as well as the penetration rate of the model, and the high retention rate of a car means that the value of the whole vehicle is high to some extent. For users, they can get a higher return when changing cars, and even if they don't change cars, they can get psychological advantages. For car companies, it is a testimony to the strength of their products, but also the core benefits it brings to users, a key factor in enhancing the reputation of brands and models, and has an obvious role in promoting new car sales.
But the reality is that whether it is a data company, the media, or the public's traditional perception of the car retention rate, it is based on the new car manufacturer's guidance price to calculate the retention rate - that is, the price of the new car after a few years of purchase and use, sold in the market, divided by the new car manufacturer's guidance price to get the percentage ratio. But this does not really reflect the value of the auto market, especially the used car market - because the manufacturer's guide price is just a guide price. The price of the owner when he actually buys a new car is the market transaction price that is lower than the manufacturer's guidance price; of course, sometimes the market transaction price is higher than the manufacturer's guidance price. To paraphrase the basic theory of economics, "value determines price", the market transaction price that both buyers and sellers recognize when trading new cars is obviously closer to the value of the new car itself. Therefore, calculating the retention rate of second-hand car transactions at the market transaction price is obviously more scientific, and it also has more guidance and reference value.
It is precisely in order to clear the "fog" of various second-hand car retention rate lists, the list of the real retention rate of used cars launched by the online car market and Nanjing 300 Cloud Information Technology Co., Ltd. (hereinafter referred to as "300 Cloud") in an exclusive strategic cooperation has been officially launched today (www.cheshi.com - "Ranking" channel). The list subverts the traditional calculation method of car retention rate based on the manufacturer's guidance price, but is based on the transaction price of the new car market, which is more in line with the actual market situation and user interests, and provides industry and user value reference more scientifically.
It is understood that 300 Cloud is an authoritative provider of auto trading and auto finance digital service providers in China, which provides intelligent asset evaluation systems based on massive and unique industry data, which deeply combines artificial intelligence, big data, cloud computing and business scenarios. 300 Cloud's new car market transaction price data system is collected on its own data platform, dealer groups across the country, user submissions, group buying websites, new retail platforms, merchants (including 4S stores and secondary dealers) and forum owners of major websites, etc., and has the most complete and accurate new car market transaction price database in China. 300 Cloud also has the first software in the industry to realize the online and standardized valuation of used cars, providing consumers with services such as vehicle data information query. At present, 300 Cloud's second-hand car transaction data information not only serves institutions such as 58.com, Guazi, Renrenche, Uxin and Tiantianpai, but also serves brand dealers such as SAIC, GAC Toyota, Mercedes-Benz and BMW.
Mining key data in related areas of the automotive market to serve consumers has always been the best of the online car market, and it is also one of the core values of the online car market. As the first automotive platform and the top three automotive vertical websites in the domestic automotive field with the service concept of "data humanities" and the basic principle of market conditions and shopping guides, the online auto market provides Chinese auto consumers with comprehensive, objective and timely model data and creates a "one-stop" car purchase service. The list of real retention rates of used cars launched with 300 Cloud not only further enriches the "massive" database of the online car market, but also allows the used car market, which is getting larger and larger and healthier to develop, and has a list of used car retention rates that truly reflect value.
It is understood that according to the exclusive strategic cooperation agreement between the online car market and 300 cloud, the two sides will work together to release a list of more than 200 used car retention rates of more than 200 car series for 1 to 3 years to the industry and the market in a monthly time period.
In fact, based on the research of the online car market over the years, the above second-hand car retention rate based on the guidance price of new car manufacturers has long caused widespread doubts, and more and more consumers have begun to pay attention to the real retention rate of second-hand cars based on the market transaction price.
Some models have a high retention rate based on the guidance price, but due to reasons such as price increase, installation, and optional, the actual transaction price is significantly higher than the guidance price, and the depreciation loss when the user actually replaces and sells the car is very large. Taking Lexus ES as an example, under the traditional calculation method, its three-year retention rate has reached 86.45%. However, the three-year true retention rate based on the transaction price is only 71.00%. That said, the second-hand Lexus ES is not as valuable as we think.
Some models have a low retention rate based on the guide price, but because the actual transaction price is significantly lower than the guide price, the return rate when the user actually replaces the car is actually very high. Taking Yinglang as an example, under the traditional calculation method, its three-year retention rate is only 43.33%. However, due to the large discount margin of the terminal, the three-year true retention rate based on the transaction price reached 51.00%. Based on the terminal price of about 100,000 yuan in the 2019 Yinglang 18T automatic interconnection elite type, its actual depreciation loss is 49,000 yuan, not the traditional method of 77,000 yuan. Obviously, this has a great impact on consumers' choices about buying new cars and replacing them, as well as actual benefits.
With reference to the market new car transaction price, the second-hand car retention rate of many domestic brand models can also return to the normal value evaluation track. Because the price and configuration of these domestic brand models are more matched, and more sincere policies and concessions can be given in terminal sales, and consumers' recognition of domestic brands is increasing, the real retention rate is not as low as the traditional retention rate. Taking Changan Yidong as an example, its traditional retention rate is only 54.79%, but the real retention rate based on the transaction price has reached 61.00%. This is already a fairly high level, surpassing most of the mainstream joint venture brand models of the same class.
Summary: Different from the second-hand car retention rate based on the guidance price of the new car manufacturer, the real second-hand car retention rate based on the transaction price of the new car is the value curve that runs through the life cycle of a car, and the trend of this curve reflects the true value of the car in different periods. Whether it is a new car transaction or a second-hand car transaction, the real retention rate provides consumers with a more valuable reference, allowing consumers to establish correct price expectations and truly correlate their own interests.
For the industry, the real retention rate provides a more accurate market reference for car companies, and at the same time, it can also connect dealers to establish a fair and transparent second-hand car price determination mechanism, and improve the unified second-hand car business standards and replacement processes. In the end, let the indicator of "used car retention rate" be correctly recognized and better serve people and cars, which is also the profound significance of the online car market and 300 Cloud's launch of the real used car retention rate ranking list.