Used car market - reaction is not only reflected in the price

Since the beginning of this year, the price cuts of cars have been heard. The auto market has been chilling for a long time in the "black months" period. As a second-hand car market with a high degree of relevance to the new car market, it has naturally been attacked by a "black storm." "The news that every manufacturer's price reduction is a bad news for us." The manager of an old car dealership complained to reporters. In order to survive, in order to reduce the risk of operating used cars, some used car dealers not only adopt zero-inventory, consignment-based business methods, but also artificially predict the future price of used cars, such as Santana announced price cuts, they also sensitively Jetta is also forecast to drop, thereby reducing the price of used cars in the same market in advance. With the growing use of the second-hand car market, this behavior of used car dealers on the new car market is gradually reflected. The use of dry rivers in the used river market as a replica of the new car market has made it difficult for the new car to cut its prices and the market will suffer. Although reporters still saw bustling crowds in the trading floor of the old motor vehicle trading market in Beijing, Liu Hualin, the deputy general manager of the market, said that their market transactions are currently declining month by month. As of the end of June, the old car market in Beijing traded 70,000 used cars. In the months of May, June and July, the market’s trading volume was declining month by month. In May, a total of 12,000 old cars were traded, and 10,000 old cars were traded in June. In July and August, according to the past, Experience, due to the hot weather and the off-season, the optimistic estimate that the transaction volume can reach 10,000 cars is considerable. Liu Hualin believes that the used car market is mainly affected by the automobile climate, so some people who are ready to buy used cars are also on the sidelines. “It's just that the change in the used car market is not as obvious as the new car, and there is not as much reduction in the new car market, such as new cars. The market has shrunk by 50%, and the used car market has only decreased by about 20%, because some consumers who have lost confidence in new cars that frequently cut prices will switch to the used car market and prepare to buy second-hand cars as excessive. The quantity is smaller than the new car, but Yang Yang, the marketing manager of China United Motor Vehicles, admits that the risk of operating a used car is much greater than that of a new car. “New car dealers drop profits, and individual sales are only a handful, and new cars are If you do not sell it, you can see that the new car market is the same as the price of the brand one day at a time. If the used car brokerage company cannot see the market, it will be in your hands. Statistics show that the profits from used car operations are rapidly declining. Taking Beijing as an example, the profits from trading in used cars were more than 35% before 2000. In 2002, it fell to about 17%. In 2003, it was between 10% and 12%. By this year, the profit was only 5% to 8%. "It's not bad to have 2% in the last two months." The manager of an old car brokerage company said with frustration. The dance on the blade Although the days of used car dealerships seem to be dancing, Liu Hualin said that as of now, none of the old motor vehicle brokerage companies in their market has been delisted because of the lack of support. Liu Zengyong, general manager of Beijing Wanbao Old Motor Vehicles Co., Ltd., said that in order to deal with the market, they basically do not maintain inventory, and they mainly use “consignment” methods to operate. The so-called consignment is a kind of intermediary behavior. For example, some people who want to sell the car can send the information to the brokerage company. Before the brokerage company can find the buyer, they can still continue to use the car until the buyer and the seller meet and the transaction is successful, and the brokerage company can collect some intermediary fees from it. Before it was sold, the price of the old car that was commissioned for sale was uncertain and could be fluctuating with the market price. The transaction price was determined at the last moment when the buyer and seller reached an agreement. In this way, the brokerage company can avoid the risk of price fluctuations in the new car market after the early acquisition of used cars. It is reported that at present most of the old car brokerage companies have adopted this mode of operation. For the old motor vehicle brokerage companies, if the major brands operated by them frequently cut their prices, the operational risks of the brokerage companies will also be very high. Therefore, dealers of second-hand vehicles rarely have a single brand. Liu Hualin told reporters that in order to reduce risks, used car brokerage companies are particularly sensitive to the prices of new cars on the market, and their insights are also very strong. Santana, for example, announced a price cut, and the used car brokerage firm will then adjust the purchase price and sale price of Jetta in advance. In other words, once a brand's models have announced price cuts, the prices of all brands of the same brand in the used car market may be mobilized. Moreover, if a brand sells poorly, used car dealers will abandon them at the first time. The reaction is not only reflected in the price of active price cuts for second-hand car dealers. A car manufacturer said that at present, they do not care too much because their energy is mainly on the promotion of new cars. An industry source said that although used car dealers do not have the power to dominate the market, their active price cuts will have a corresponding reaction to the new car market. In this regard, the State Council Development Research Center, Deputy Minister of Industry and Economic Research Feng Fei said: "In theory, there will certainly be a price linkage between the two, the second-hand car market in advance of the price reduction will have a counter force on the new car market. If the used car market is relatively small, this impact will be relatively small.” According to statistics, although the transaction volume of used cars in China is increasing at a rate of 25% per year, its trading volume only accounts for 30% of the new car transaction volume. In Japan, annual sales of used cars have surpassed new car sales for six consecutive years, and annual sales of used cars in Germany and the United States have been 2 to 2.5 times that of new cars, and in Britain it has been as high as 3.5 times. Wang Meng, of Beijing’s old motor vehicle trading market management office, believes that the counteractive force of second-hand car dealers’ initiative to cut prices on the new car market will not only be reflected in prices, it will affect consumer choices. The original old cars were generally used after 5 years of trading. The difference between the old and new cars is very large. In recent years, the use of one or two years to change the car is very much, the difference between used cars and new cars is relatively low. For example, the difference between the use of two years Guangben and the new car is 30,000 yuan, so many people will give up the old car and buy a new car. Now the old car dealers take the initiative to lower prices, and the difference will increase accordingly. Some people will return to buy old cars. This is the performance of counteraction. (Yang Fenglei)

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