Manufacturers receive rights to second-hand car dealers to grab business models

With more and more manufacturers participating in used car operations, dealers are beginning to find new profit growth points in the cracks.



“Whether it is a branded used car or a B2B online trading model, it is a manufacturer-driven second-hand car operating platform. If a 4S shop wants to make a profit on a used car, it only has to avoid the manufacturer’s platform to find a new way out. In an interview with reporters, Cai Haiyou, deputy general manager of the Asian Games Village Automotive Trading Market, said that the continuous increase in the number of used car replacements in Beijing has become a major source of profit for brand dealers. Therefore, it is market-oriented to promote multiple marketing models for used cars. The innovation and construction is an inevitable trend in the development of the used car market.

According to the latest statistical data on the huge profit chain, the sales ratio of new and used cars in Beijing in May was 1:1.15, and the used vehicle turnover in May exceeded the sales of new cars by 14.8%. From January to May, Beijing used a total of 263,000 second-hand vehicles for sale, a year-on-year increase of 90.9% from the 90,440 vehicles sold in the same period of last year. The average monthly transaction rate of new and used vehicles was 1:1.1.

In Cai Hairen's view, Beijing's full supply of used car resources has supported the transaction volume to maintain a relatively high level, of which Beijing's second-hand car city in the transfer of old to old ratio of up to 56.7%.

It is understood that most of the 4S dealers in Beijing have carried out their own used car business, and in the new car sales, the replacement ratio has been raised to more than 30%.

An independent brand dealer told reporters that under the background of new car sales being blocked, the used car business will only increase. At least several hundred thousand yuan of funds will be credited each month, which has exceeded the profits from new car sales.

The reporter learned from the interview that at present, there are multiple trading platforms in the used car trade in Beijing. In addition to the traditional brokerage company transactions, the B2B trading model between dealers and C2C and B2C transactions based on the online platform. Patterns have emerged.

In fact, since the used car market experienced an adjustment last year, even though more than half of the used car dealerships have been closed down or transformed, the steady growth of used car transactions this year has attracted some second-hand car dealers to rejoin.

“Although 40 brokerage companies withdrew from the company last year, nearly 60 brokerage companies have applied to join the used car business district of the Asian Games Village Auto Trade Market this year.” Cai Haiyuan told reporters that at present, only registered car dealers in Beijing have 1000, due to the low threshold for entering the used car business, it also led to a more modest business model of the used car market.

Shen Rong, deputy secretary-general of the China Automobile Dealers Association, also stated that the emergence of second-hand car dealers and the number of developments depends on the total size of used cars. At present, the second-hand car companies in Beijing can be said to be the most active.

Manufacturers involved in the potential of used car market, as upstream manufacturers also began to intervene in the used car market, and participate in used car operations.

According to incomplete statistics, there are currently more than a dozen brand-certified used cars in China, including Shanghai GM’s “Chengxin Used Cars”, GAC Toyota’s “Hearty Used Cars”, Dongfeng Peugeot “Chengshi Used Cars” and Dongfeng Citroen “Dragon”. "Used Cars", Shanghai Volkswagen "Preferred Used Cars", Dongfeng Nissan "Certified Used Cars", Dongfeng Yueda Kia "Zhicheng Used Cars", Mercedes-Benz "Starcraft Used Cars", BMW "Prize for Used Cars", Audi " Recommended products such as used cars, etc., which luxury brand is established independent of the new car sales system outside the used car center, to strengthen the used car brand.

At the same time, more manufacturers involved in the used car business is an online trading platform for designated dealers. This action not only grasps the amount of customers that dealers actually replace old cars in the store, but also controls the prices of transactions.

Compared with the traditional second-hand car trade, the used car platform controlled by the manufacturers has a great advantage. On the one hand, the used car brand established by the manufacturer can solve the problem of credibility, on the other hand, it can save the transaction time for consumers.

According to statistics, last year, FAW-Volkswagen’s total sales accounted for 43% of the total sales; while Audi had nearly half of its sales came from used car replacement, and the penetration rate of replacement this year is still rising.

According to reports, with a monthly turnover of 50,000 second-hand cars in Beijing, and an average price of 50,000 yuan per vehicle, only used cars in Beijing will drive a turnover of 2.5 billion yuan.

The increase in trading volume has brought huge profits to dealers. Manufacturers also hope to select a used car auction platform according to the brand's standards, introduce this model into the store replacement business, and strengthen supervision and optimization of replacement business.

It is understood that at present, manufacturers in Beijing mainly use the B2B model to complete the transaction of used cars, among which excellent letter shot is a platform used by various manufacturers.

“Whether it is building a branded used car or a platform through excellent letters, the information on the used car is focused on the second-hand car center established by the manufacturers. The manufacturers control the final resources,” said a FAW-Volkswagen dealer. .

The divergence of mode differences is looming. Although the second-hand car transactions involving manufacturers increase the transparency of the market and attract some consumers, the external concern is whether the investment in the manufacturers has shown signs of overheating. At the same time, due to the fact that the price is not open, the specific business model has great differences, etc., which make the manufacturers profitable.

In fact, compared with other provinces and cities in China, the scale and market of used cars in Beijing are relatively mature, but only 40% of the models actually auctioned through the Internet.

Shen Rong told the reporter that at present, the second-hand car trade in Beijing mainly focuses on auction platforms such as Youxinpai, Instant Beat, Che Yipa, and Beiqi Penglong, which already account for about 30% of the trading volume of the used car market in Beijing. If manufacturers participate, the interests of all parties will be re-divided.

The reporter learned from the interview that due to the small number of transactions, the turnover rate of various trading platforms has been high. However, as the number of downstream auctioneers is difficult to match with the over-expanded auction sites, the number of car dealers has become severe. Shrinking.

It is not difficult to see from the statistical data that the transaction volume of used cars has increased in May this year, but the transaction rate has declined. In May, the amount of online use of used cars increased by around 5%, while the turnover rate dropped from an average of 51% to 44%.

In addition, due to the fact that the used cars certified by various brands are basically limited to 5 years or 100,000 kilometers, this is also an invisible barrier to the use of used cars, allowing more unqualified used cars to flow to other channels.

A person in the industry who is engaged in used car certification work believes that brand manufacturers are involved in the used car market for the needs of project operation and management. There is no mistake in this choice. Dealers must also be accounted for independently. Although manufacturers provide a platform, if they do not handle the distribution of benefits and services, at this stage of operation, dealers are willing to follow the inherent market model.

A variety of business trends have faded Even though manufacturers are involved in used car operations, dealers still have great room for development. Cai Haiyuan said that dealers relying on brokerage companies generally have close-knit or self-established brokerage companies. As a result, there are many connected transactions in profitability, and the profitability is relatively higher than other models, and the financial growth rate is also high. very nice.

It is reported that due to the special nature of Beijing's new car market, many dealer groups have already penetrated into the used car field, not only establishing their own export channels, but also already established a brokerage company to get involved in used cars.

However, the used car industry in Beijing is facing another risk. Compared with other provinces, the external flow of used cars in the Beijing area is very obvious. In 2011, the used cars in the Beijing area will flow directly to and out of the land more than 60%, and this figure will also have a significant increase. Since the beginning of this year, all localities have begun to implement the policy of foreign investment access. Some used cars that do not meet the local environmental protection standards cannot be circulated among cities. The enthusiasm of car dealers for bidding for used cars is seriously frustrated. If they still rely on the original model, they will be serious. Obstruct the road to dealer expansion.

At the same time, the second-hand car trade under the guidance of manufacturers has also encountered bottlenecks, and the trading volume of used brands of various brands is also difficult to make breakthroughs in volume.

Cai Hairen said that the online trading platform is not only a supplement to the traditional second-hand car trading model, but also an effective way to solve the deployment of used car resources. The involvement of manufacturers is not in contradiction, and it will only better export used cars from Beijing to the country and increase the speed of turnover.

However, Shen Rong believes that “If you use a second-hand car in China, you will only be followed by manufacturers and will be constrained by manufacturers, and you will not be able to see the changes in the market. Running in accordance with your own model will also be limited in the downstream, and it will be difficult to form a scale.” The problem of resource integration still exists in the used car channel, and the used circulation of used cars has not yet been formed in the country. Various models are still at an experimental stage.” Shen Rong believes that with diversified operations, the operation of the entire industry chain is the future direction.

Although this direction is relatively remote, it is not unthinkable. According to public information, many automobile companies also agree with the second-hand car dealers that the dealers invest in, in addition to establishing a used car center to coordinate distributor resources. "As long as mutual understanding and coordination, and to resolve the interest division of used cars, the development of used cars is still profitable." Cai Hai said.

According to industry forecasts, around 2014, the total scale of used car transactions in the Chinese market will be expected to reach 10 million vehicles. At present, the total amount of used cars in the Beijing region alone can carry the new transaction model. Along with the increase in the number of second-hand car transactions, it also provides guarantees for the development of various trading models.

Shen Rong said that at present, almost half of China’s vehicle ownership has entered the market in the last three years, and as the vehicles gradually enter the second-hand car trading cycle within five years, the total amount of domestic used cars will increase significantly. The development of transaction models provides room for growth.