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Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Original Author: Wang Meng (Used Car Xiao Fat)

Interview: National Used Car Dealer (Anon.

Picture and text from: Internet authorized use

Originally, around the May Day Golden Week every year, it was a small peak in the first half of the year for second-hand car trading, after all, the spring has begun, many people still need to "wave a wave", whether it is old for new or buying used cars, it is a good day above average throughout the year.

Unfortunately, in April this year, the national used car, are too difficult, immediately May epidemic is not necessarily, June-August off-season, this year, this is already the third year of the beginning of the epidemic.

According to the data of all kinds of second-hand car businesses in the national partnership, in April alone, the price of second-hand cars of most second-hand car operators in the country fell by an average of nearly 20%, and the sales volume decreased by more than 15%.

Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Inventory dumping, new mining caution, electric risk!

Beijing's less than said, the recent sale of car clues are particularly many, he is mainly docking a lot of second-hand car dealers, equivalent to professional procurement, he found that the price of the recent second-hand car acquisition has generally dropped by 10-20%, some large displacement, old car age, poor car condition, kilometers of second-hand cars No one wants, the bid is not.

Even popular used cars such as toyota prado, xena, lexus ES and the like have cut their purchase prices by at least 5%.

Boss Wang of Jiangsu, Zhejiang and Shanghai frankly said that nowadays, more than 2 months of inventory is bound to lose money, and many cars lose more, don't look at the new car price increase there is a hot head, second-hand cars are not easy to sell, the price is reduced, no one asks, everyone dares not spend money, delay the replacement, this is the problem.

He said that at present, the second-hand car dealers in Guangzhou and Shenzhen can still collect some of the national six cars, and there is no contact in other areas, everyone can't sell, naturally they will not accept it.

Northeast China, Inner Mongolia is the main inflow of used cars in Beijing- Tianjin and Hebei, due to the previous period of epidemic reasons, now it has just begun to ease, but the price of used cars has fallen all the way, the overall decline of 10% is more optimistic, many old irons are currently reluctant to cut meat, so there is no cash circulation to make up positions.

Shandong, Henan, Hubei, Hunan, Jiangxi itself sandwiched in Beijing-Tianjin-Hebei, Jiangsu, Zhejiang, Shanghai, Guangzhou-Shenzhen, second-hand car environmental protection restrictions are not much, and not limited to purchase, all kinds of second-hand cars should be very smooth, but also affected by various influences, can not sell.

A larger boss said that every month the normal wholesale and retail of 1200 units, now 500 units are laborious, inventory desperately reduce the price to withdraw funds, new procurement carefully considered, not suitable, do not take the car.

Lao Li, a high-end used car owner, said that at present, high-end used cars such as Rolls-Royce, Bentley, Ferrari, Lamborghini, mercedes-Benz G and so on on the market have been reduced by 10-20%, basically according to the price that can only be sold in September.

Well-known but not popular used cars like McLaren, Auston Martin, Maserati, etc., have a higher rate of price reduction.

There are also several businesses in Beijing and Shenzhen that do electric second-hand cars, saying that at present, many second-hand car merchants, whether it is the old jianghu or the novice village, feel that electric second-hand cars are good, vicious competition is fierce, and the price of Tesla Model3 new cars for one year has been collected, that is, gambling users are anxious to buy, the result is a high position, waiting for rabbits, and finally thin profits are not much, and even losses earn.

Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Traffic volume, e-commerce chaos, bad money fight!

Shandong Lao Bai recently live broadcast more and more tired, he said that the original OK, investment is not much, not so much trouble, now this second-hand car live broadcast, the charges are more and more varied, all kinds of "demons and ghosts" more, if you do not invite a beautiful girl, the skirt is shorter, you are embarrassed to do live broadcast.

Serious about the car, explain the few clear, wipe the edge ball and mess, even if there is now a "certificate to work" live broadcast requirements, but the "selling certificate" began to be high again, really tired no.

Chengdu is the second-hand car traffic concern to do the most, old C said, the company invited a few girls to do live broadcast, every month there are "digging the wall foot", the effect is not the same, the price is getting higher and higher, feel that the second-hand car earned money is not enough to give these "small net red tuition".

Beijing's small X originally used car Internet conversion play well, vertical website clue conversion transaction can do 8%, live broadcast can do 5%, very powerful, the result since March, the overall clue quality is too much, the conversion rate is only the original 10% is less than, converted to each car, there is no way to do.

In addition, Chongqing's car dealer T brother said that it is not easy to Uxin, melon seeds, renren car these "melon baby" second-hand car e-commerce is not much tossed, this understand car emperor began to build offline stores in Chongqing, while collecting car dealers advertising fees, clue bags, tea money, while buying and selling used cars, but also want to be XX and want to set up XX, not chaotic to blame.

A platform used car old employees, from the platform out of the business, can also be regarded as more than 10 years of industry old master, recently said, he found that after 2019, with the second-hand car e-commerce, 4S stores out of many second-hand car "new generation" and other industries to come in to pan for gold "stunned blue" to catch up with the black swan of the epidemic, the original foundation of their own is not solid, resources are unstable, coupled with the impact of the epidemic, so now the bad currency effect and vicious competition is more obvious.

Even a manufacturer's officially certified used car and dealer group used car known for its brand advantage are constantly in trouble, and there are frequent problems such as employee job crimes and refunds of one loss and three losses.

From 2015 to 2016, there were 700,000 used car practitioners in China, with 1,000 lawsuits for one loss and three compensations per year.

From 2020 to 2021, there will be more than 2 million second-hand car practitioners in China, with more than 2,000 lawsuits for one refund and three losses per year.

In 2015, China's used car trading volume was 10 million, and in 2020, China's used car trading volume was nearly 19 million.

The forest is bigger, there are more birds, in fact, there are more problems.

Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Face the difficulties, throttle open source, and see you comfortably!

In fact, since I entered the industry in 2003, China's used car industry is still relatively flat, the comfort zone is far greater than the challenge zone, as long as you are not lazy, not too lacking in morality, not too good, there is still a way to live, relative time freedom, low threshold, the academic requirements are not high.

However, since the beginning of 2019, the competition is indeed much fiercer, not only the automotive industry chain has begun to pay attention to second-hand cars, laymen have begun, real estate has also to do the second-hand car market, the game field to invest in second-hand cars, local governments began to comprehensively use the circular economy and so on.

China's second-hand car field should be regarded as the final stage of the final "reform and opening up dividend", and the era of early exploiting loopholes, boldness, and blindfolding to sell is really over.

The industry has been doing 20 years of old K said that the epidemic has brought a lot of changes, the original company is "jianghu brothers", water margin model, when the days are good, hello everyone I eat meat and drink, the days are not good, it reflects the problem.

So nowadays, there are fewer people singing, less drinking, everyone controls the cost, exercises, really reads books, calms down and does something, and leans down to simplify the government, which is actually quite good.

The original repair plant turned to the second-hand car of Xiao Liu closed the exhibition hall of Beijing East Fourth Ring Road, after all, the cost is too high, anyway, it is also wholesale-based, in Beijing East Seventh Ring "Ring Beijing Expressway" the whole wholesale live broadcast store, the same area, the original monthly rent of 200,000, now less than 20,000, employees are partner system, no basic salary, have the ability to earn 100,000 a month, no ability to be lazy, then leave.

Lao Wei in Chengdu to do used car days are very comfortable, but Chengdu and Beijing market size is similar, the number of used car operators in recent years is more than twice that of Beijing, although the local bicycle profit is high, loan penetration rate is high, there is no purchase restriction, but rent, water and electricity, labor, marketing, various costs are not cheap.

Therefore, Lao Wei listened to my suggestion at the beginning of this year, the corporatization became zero, and it became a "independent group" model led by several employees, and Lao Wei changed from a boss to an "investor", and the surface earned less, and the time and energy actually saved, the risks and problems reduced, were still very cost-effective.

The good days of used car comfort have long gone, and the comfort zone goodbye, at present may not only be the challenge zone, or even Hard mode, or hell mode!

Prices plummeted, sales were dismal, used cars, is it time to bottom out?

Old cars are low, new cars are expensive, waiting to bottom out?

To tell the truth, recently many friends asked me, is it suitable for changing cars, especially many female customers are sold a vigorous flicker, especially a lot of electric vehicles, not called sales, called Fellow, small fresh meat little girl that is active, in fact, now life is not good, or have to calculate the account.

Electric vehicle prices rise, subsidies are reduced, recently is not a good time, do not think that saving fuel can save money, electric vehicles after three years of depreciation can buy how much oil? Are you anxious about the time cost of charging? Of course, if there are conditions at home, or there is no way to give cards, then there is no way.

Fuel vehicle short-term price increase is not normal, the epidemic shutdown, chip tension, in fact, if our production capacity and supply chain are released, or oversupply, but the current special, or some people hoard goods are just strange, you are in a hurry, then increase the price to buy.

Recently, a BMW second-hand 5 series, for a Land Rover Range Rover, relative to the market after the Spring Festival, the old car sold 30,000 less, the new car spent 100,000 more, 130,000 inside and outside, not bad money can not be too losers, right?

Recently the price of second-hand cars to buy the price of the decline, is indeed the epidemic caused by the circulation problem, abnormal, it is expected that with the improvement of the epidemic situation will be adjusted, the new car is also preferential reduction is staged, from the current point of view, the old for new at least increased the cost of about 10%, you calculate it yourself.

According to the historical performance and normal industry laws, it is expected that in the second half of the year, the supply of new cars will ease, the epidemic will be stable, the prices will be normal, and even the government will promote consumption subsidies.

Now, it is difficult to make money, confidence is insufficient, I hope that the relevant departments can promote a hand, such as short-term liberalization of car purchase restrictions, increase replacement subsidies, etc. Originally, natural disasters, let's reduce some "man-made disasters".

This year's used cars, really hard! What do you think?

—THE END—

Wang Meng, the author of this article: Internet ID used car Xiao Fat, post-80s Beijing native, nearly 20 years of practice, automotive undergraduate major, MBA, successively served as the largest domestic used car market director, dealer group used car leader, well-known enterprise consultant independent director, etc. He is currently an expert of China Automobile Dealers Association, deputy secretary general of Beijing Automobile Circulation Industry Association and other social positions, and is currently mainly engaged in consulting, training, media, content, investment and other businesses related to the automotive industry.

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