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The auto market is looking for increments from the stock, is trade-in a savior?

author:The people evaluate the car

Recently, a message from the Ministry of Commerce appeared on the hot search: it said that promoting the trade-in of cars is the focus of promoting consumption this year. The intention is obvious, the old car does not go, the new car does not come, and the consumption of new cars is promoted by replacing the old car.

The auto market is looking for increments from the stock, is trade-in a savior?
The auto market is looking for increments from the stock, is trade-in a savior?

Now the automobile market has entered the era of stock competition, and the number of cars is also rising, but with the acceleration of car replacement, it is difficult for vehicles with long ages to provide safety and comfort in place, and many consumers have also come to replace vehicles. If the relevant departments introduce the trade-in policy, it will further stimulate the growth of new car market sales, and even drive the development of the second-hand car market. But everything is a double-edged sword, and the trade-in policy will also allow some dealers to seize the shortcomings of consumers who do not understand the second-hand car market, and specially design some traps to make profits.

It's not the first time that a trade-in is not the first time

At present, the number of cars in the mainland has reached 340 million, and the sales growth rate of fuel vehicles under the impact of new energy vehicles has slowed down, and it has become saturated. Then the car trade-in policy will stimulate the desire of old car users to change cars.

In fact, the trade-in initiative is not the first time in the automotive industry. As early as 2009 and 2020, the state introduced corresponding policies and gave corresponding subsidies to car owners. At the same time, major car companies are also responding positively, bringing good preferential policies to vehicles. Although the effect of the trade-in policy was not as good as that of cars going to the countryside, the price of buying a car has really come down.

The auto market is looking for increments from the stock, is trade-in a savior?

The effect of lower car prices on sales is clear. Now all major car companies are fighting a price war, and after the price of the head brand vehicle is lowered, the vehicle sales performance has ushered in a significant increase. If the car trade-in policy is released in 2024, superimposed on the original preferential price of the vehicle, it means that the entry threshold for the vehicle will be lower than now, which can better stimulate the increase of vehicle sales.

Consumers exchange old cars for new ones, which also contributes to the environmental protection of the society and the industrial upgrading of the automobile industry. The exhaust emission pollutants of old cars are more than those of new models, and they have a certain amount of pollution to the air environment. If consumers are more willing to choose the current new models, especially the new energy vehicles that are now popular, it will help further purify the air environment.

As for the automobile industry, more consumers buy new cars, which will help car companies to get better development, and then bring consumers a better car experience through continuous product and technology upgrades.

The auto market is looking for increments from the stock, is trade-in a savior?

The implementation of the new policy is still difficult

However, there are two sides to the development of everything, and there are certain drawbacks to the car trade-in policy. Since many consumers do not have a deep understanding of the value of old cars, when they evaluate the price of old cars, many dealers tend to exaggerate the problems of old cars in order to maximize profits, and then buy old cars at a very low price.

It is not excluded that there will be dealers who take advantage of the trade-in policy and do not intend to sign an old car purchase and sale agreement in the process of replacing the old car, or the content of the agreement is very vague and the responsibilities of both parties are not clear. Once there is a problem with the old car, it is easy for the user to cause unnecessary losses. At the same time, the trade-in policy also allows dealers to blur the preferential price of new models, causing users to spend more money to buy new cars.

The auto market is looking for increments from the stock, is trade-in a savior?

In order to protect their rights and interests, consumers will have more concerns when replacing their old cars, which is also not conducive to the implementation of the trade-in policy. In the early years, it was difficult to significantly increase sales under the trade-in policy, mainly because there were too many difficulties and the interests involved were complicated.

How to implement the car trade-in policy, how to effectively protect the rights and interests of consumers, how to fix the amount of replacement subsidies, etc., before there is a specific answer, it is estimated that consumers' enthusiasm for changing cars will not be significantly improved, and the implementation of the trade-in policy is not as easy as the phenomenon.

It cannot be ruled out that the Ministry of Commerce will further improve the trade-in policy this time. In order to promote the trade-in of old cars, the Ministry of Commerce may take a series of measures, such as providing policy support such as replacement subsidies and tax incentives, strengthening publicity and education, improving consumers' awareness and acceptance of car trade-in, and is also expected to improve supervision, so that consumers who exchange cars can get better protection of their rights and interests, so that the trade-in policy can really benefit consumers and make the automotive industry develop more healthily.

The auto market is looking for increments from the stock, is trade-in a savior?

The people evaluate the car

In 2009, the trade-in policy was proposed against the backdrop of the global financial crisis, and in 2020, the central government once again mentioned the trade-in policy because the development of China's auto market had encountered a bottleneck. This promotion of car trade-in is of great significance for promoting consumption upgrading, environmental protection demand and industrial upgrading. It's just that the current auto market has changed a lot compared with that year, and the mainland auto market has changed from increment to stock, and the game in the era of stock, whether the trade-in will be a breakthrough remains to be verified by time.