Recently, the China Automobile Dealers Association released data on the retention rate of cars in February. Last month, some cities with limited purchases launched new regulations on used car turnover indicators, which played a role in promoting the overall circulation of used cars. Affected by the extended delivery period of some hot models, the price of used cars has also increased.
In terms of policy, Beijing has issued a management measure for the turnover indicators of second-hand passenger cars, which will be implemented in April. Because the turnover index specifically serves the second-hand car circulation enterprises, other families, individuals, and institutions are not allowed to apply, and the number of application indicators is linked to the parking spaces leased in the market, which is equivalent to the limited scale, but not the number of turnovers. According to the regulations, turnover indicators are not allowed to go on the road. Previously, in the restricted purchase cities, second-hand car transactions have long been limited by indicators, which not only restricts the growth of transaction volume, but also increases the hidden cost of car dealers in the rental indicators. Among the cities with purchase restrictions, Shenzhen has issued a management measure similar to the turnover indicator in July 2021. Therefore, the introduction of relevant management measures in other purchase-restricted cities will also help promote the overall circulation of second-hand cars.
The 3-year-old Porsche value ratio is still 95.2%
Because February is the Spring Festival holiday, the overall working day is less than usual. Therefore, it is normal for used car transactions to decline month-on-month. In all levels of used cars, in addition to low-end MPV, the retention rate has increased. This is due to the fact that the tool attributes of such models are relatively strong, and the working days in February are relatively short, so the demand and transaction volume of low-end MPV have declined. In addition, luxury brands such as BBA and Land Rover were increasingly favored last month, squeezing into the living space of joint venture brands.
In terms of the retention rate of luxury brands, BMW, Land Rover and Cadillac have a significant increase compared with the previous month. Although Lexus and Porsche have the highest retention rates, the high retention rates also dampen the rise in transaction volume, which is not conducive to the expansion of the brand's scale and market share. Both brands have made high-profile announcements about electrification strategies, and some changes in consumers' definition of luxury are expected in the future. Last month, the Land Rover retention rate was relatively prominent, mainly to capture consumers' preference for SUVs, including domestic models and imported models. As a result, the retention rate is on an upward trend than before.
Wuling Lynk & Co GAC Trumpchi retention rate has dropped
Among the mainstream multinational brands, Japanese brands are still in a leading position. Among them, Toyota brought new energy models to the Winter Olympics in February, which greatly improved their brand image in the field of new energy. Korean brands have seen a large increase compared with last month, and modern and Kia products have been greatly updated, which is also helpful for the improvement of brand retention rate. In terms of other second-tier joint venture brands, due to the seasonal rebound in the retention rate, there was also a certain increase compared with the previous month.
In the camp of independent brands, Wuling, Lynk & Co and GAC Trumpchi have declined to a certain extent, while the retention rate of Changan and Weipai has increased slightly.
As for new energy used cars, prices have also fluctuated due to the impact of new cars. On the one hand, the price of electric vehicles in the new car market has generally increased, and the supply is in short supply. On the other hand, the delay in delivery of electric vehicle manufacturers has caused dissatisfaction, among which the problem of direct brands is more prominent. It should be noted that some models are affected by the suspension of sales and delisting, which will bring certain risks to the residual value of used cars. In addition, for the discontinued models, the price of used cars will quickly "dive" from a higher position, which shows that electric vehicles are more risky than fuel vehicles in this regard.
Nandu reporter Liang Luozhe (The data in this article is jointly provided by the China Automobile Dealers Association and Jingzhen Valuation)