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"I have more than 20 cars in my hands now. If I can't sell them all this month, my capital chain will be completely broken!" Lao Chen, who has worked in Beijing Huaxiang used car market for many years, complained to "Qi Che Ba Tan" about the bleak market situation. But Lao Chen's experience is not an isolated case, it is also a common phenomenon in the entire used car industry.

Since entering August, the used car market, which has been affected by the new car price war, is still suffering in the traditional off-season. According to data released by the Circulation Association, the cumulative transaction volume of used cars from January to July this year was 10.9923 million, a year-on-year increase of 6.3%, an increase of 651,500 vehicles compared with the same period, and the cumulative transaction amount was 730.039 billion yuan.

However, in actual used car inventory, the average inventory cycle in July was shortened to 54 days. Although it was reduced by 2 days compared to 56 days in June, it did not fundamentally alleviate the inventory pressure faced by car dealers. Car dealers need to continue to pay attention to and effectively manage inventory levels.

In the hot summer weather in early August, even on weekends, the number of consumers who came to see cars at the Huaxiang used car market was very small. Many used car dealers gathered under umbrellas, browsing their phones, playing cards and chatting. However, when a customer stopped in front of a car, they would quickly stand up to greet him.

"I rented 6 parking spaces in the market. The monthly rental cost is very high, but now I can't sell many cars a week. I can't make ends meet." Lao Chen told "Auto Talk" that he has a mileage of 20,000 kilometers and was manufactured in 2022.CamryIt took a total of three months from purchasing the car to selling it. Adding the time and site costs, the net loss for one car was about 20,000 yuan.

As new car prices continue to drop, used car prices are also following suit. Other car dealers told Auto Talk: "New car prices have dropped, and many customers have gone to buy new cars. Now the prices of many new cars are lower than our purchase price. So what else can we do if used car prices don't drop as well?"

Compared with car dealers who sell a wide range of models, second-hand car dealers who focus on luxury brands have a harder time. Take BBA as an example. The sharp price cuts in the terminal market have caused dealers to complain bitterly. Compared with small car dealers without storefronts,BenzBrandMr. Wang has his own office, so he doesn't have to suffer under the scorching sun. Although the environment is relatively comfortable, he still has a hard time dealing with the backlog of inventory.

"Nowadays, new cars are often reduced in price by hundreds of thousands of yuan, which has completely squeezed our living space!" It is understood that since May this year, Mr. Wang has been selling almost all his Mercedes-Benz models at a loss. "Domestic cars are better, C-Class andGLCThey are all considered "hot items" and can be sold at a fair price or with a small loss, but imported cars are more troublesome!"

Mr. Wang has a 2020 modelCLSFor example, it cost nearly 400,000 yuan to purchase it at the beginning of the year, but after several months of waiting, few people are interested in it even if it is listed at 340,000 yuan. "Imported cars basically lose 50,000 yuan for each sale, and you can ask other companies and they are the same.MaybachandBig GWe don’t have the resources to buy a car like that, so we can only hold on.” Mr. Wang said helplessly.

According to statistics from the Circulation Association, 92% of used car dealers have suffered losses in recent years, and the survival and development of used car dealers have been severely challenged. In contrast, the official used car business, which is supported by new car manufacturers, is under tremendous operating pressure under fierce market competition.

Mr. Yin, head of an American brand dealer in Beijing, told "Auto Talk" that there are many companies that rely on acquisitions to convert used car customers into new car customers, but it is becoming increasingly difficult to dispose of the acquired used cars in the store.

"The car dealers who cooperated with us before are no longer operating in Beijing. No one will do business that doesn't make money." According to Mr. Yin, many of the brand-name used cars that the store originally purchased, except for some cars in good condition that were kept for their own preparation and sale, most of them were packaged and wholesaled to used car dealers for sale in other places. But now with the withdrawal of the cooperating car dealers, how to quickly deal with the old cars on hand has become a problem that needs to be solved urgently.

At the same time, the acquired used cars of their own brands are also facing the pressure of price cuts. Finally, the support provided by the manufacturers for official used cars is not as strong as before. "The price of new cars is very low, so customers will naturally not consider buying used cars?" said Mr. Yin.

"Qichebatan" learned that the original manufacturer would give a certain percentage of cash subsidies for each used car that was recycled and resold, but starting this year, this subsidy was completely cancelled. The store has to bear the costs of maintenance and warranty after collecting the car, which undoubtedly increases the operating costs of official used cars. Mr. Yin said: "The wool comes from the sheep. Our costs have increased, and this part of the cost can only be transferred to the user."

As we all know, used cars are an asset-heavy industry. Car dealers cannot realize cash in a short period of time after investing a large amount of money. At the same time, they need to pay for storefront and parking space rents, which may lead to cash flow difficulties. The asset-light operation model of online live broadcasting of car sales has naturally become one of the means for many used car dealers to imitate.

Especially in April this year, 360 Chairman Zhou Hongyi publicly auctioned his Maybach S600, which attracted the attention of many second-hand car dealers. Some dealers also conducted a full online live broadcast, hoping to use this traffic to increase their own popularity while opening up new customer acquisition channels.

Although many used car dealers are trying live streaming, only a few can stick to it for a long time. Mr. Wang, who specializes in Mercedes-Benz brand, said frankly: "If we only rely on the market's own customer flow, there are not many consumers who come to consult and look at cars every day. Many of them are attracted through platforms such as Douyin."

Although live streaming is relatively simple to attract customers, the operational costs still deter many car dealers. "For me, hiring a live streamer and cameraman costs more than 20,000 yuan per month. Add to that the maintenance of the comment area, etc., and the profit from selling one car often cannot cover the expenses."

In Mr. Wang's opinion, selling cars through online live streaming is not a long-term solution. After all, there is a lot of traffic and popularity at present, but it is still unknown whether it can be sustained in the long run. At the same time, many live streaming platforms require merchant certification, and the cumbersome procedures and requirements have also discouraged many car dealers who are interested in cooperating with live streaming.

After some investigation, we can find that the current used car industry has become more difficult in the context of the new car price war. As the market accelerates the reshuffle, more car dealers will inevitably withdraw from the market. In the future, as market uncertainty increases, car dealers must also rationally estimate actual market demand based on actual conditions. Only by putting cost reduction and efficiency improvement first can we overcome the difficulties.