second-hand car transactions have a profound impact on "trade-in"
2024-09-01
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
the relevant policies on car trade-in have been transmitted to consumer terminals. the picture shows car buyers choosing domestic new energy vehicles. (visual china)
our reporters: ni hao, yang shasha, ren yiran, huang xing, liu yatingin mid-august, the ministry of commerce and seven other departments issued the "notice on further improving the work of auto trade-in" (hereinafter referred to as the "notice"). compared with the "detailed implementation rules for auto trade-in subsidies" issued in april this year, the "notice" clearly stated that the maximum subsidy for individual consumers who scrap old cars and buy new cars has been raised to 20,000 yuan. the new wave of demand for scrapping old cars and replacing old cars with new ones has attracted more and more attention to the used car trading market. in march this year, the "action plan for promoting large-scale equipment renewal and consumer goods trade-in" issued by the state council proposed that by 2027, the amount of scrapped cars recycled will increase by about one-fold compared with 2023, and the volume of used car transactions will increase by 45% compared with 2023. this means that in 2027, the volume of used car transactions in my country will reach 26.699 million vehicles, becoming an increasingly important trillion-level market. an industry insider told the global times reporter that compared with some developed overseas auto markets, there are still some details in my country's used car trading links that need to be optimized, which will help the efficient implementation of the auto trade-in policy.both buyers and sellers have "bitter water"ms. lu from beijing owns a 7-year-old lexus suv. as the vehicle's mileage increases and her children grow up, she plans to sell the car in the summer of 2024. she told the global times that in her opinion, online second-hand car sales platforms are more trustworthy than offline car dealers. "i feel that the review of online platforms will be more standardized and strict, while the quality of offline car dealers varies. i have already done valuations on my car on multiple platforms, and the other party's offer is around 140,000 yuan." ms. lu plans to go to the 4s store of the car dealer to inquire about the trade-in policy. "although the offer may not be higher, i feel that the 4s store has more qualifications and guarantees."ms. lu shared her views on the major online second-hand car trading platforms: autohome, yiche, and dongchedi are mainly product information apps, suitable for learning about new cars, and they also have professional media evaluation articles. such platforms are more tool-oriented, but not suitable for directly buying and selling second-hand cars. guazi second-hand car and taocheche are pure second-hand car sales platforms. there are more car dealers on guazi, but fewer of them have their own car sources. taocheche basically has its own resources, but on a smaller scale. other second-hand trading websites such as 58.com and xianyu can also sell second-hand cars, but they are not professional platforms.ms. lu said that according to her understanding, there are also some professional apps that are used in the process of selling cars, such as qixiubao for checking vehicle production information, dr. cha for checking auto repair and maintenance records, and che300 for used car practitioners as a price reference, etc. ms. lu couldn't help but sigh that the large amount of information that needs to be understood in the process of selling used cars is not easy.while the complicated online channels confuse car sellers, many used car dealers admit that the current market lacks vitality, especially the decline in new car prices has affected the confidence of used car traders. since the "price war" broke out in the domestic new car market in 2023, the price system of the used car market has been greatly impacted. statistics show that in recent years, the proportion of used car dealers that have suffered losses has reached 92%, and the average transaction price of used cars has dropped from 61,600 yuan to 48,400 yuan.a practitioner told the global times that the trade-in of cars involves the circulation of the new and used car markets, and the two need to "grow in coordination". the continued decline in used car prices will suppress the demand of car owners to replace new cars, and ultimately affect the sales of new cars. wang du, vice president of the china automobile dealers association, previously said that the development of used cars is related to the entire automobile circulation and even the development of the automobile industry. if used cars are not smooth, the automobile industry will suffer from "intestinal obstruction", which is a vital matter.the latest statistics released by the china automobile dealers association show that although the domestic used car market transaction volume decreased both year-on-year and month-on-month in june this year due to insufficient demand and new car price wars, the used car market as a whole maintained a steady growth trend in the first half of 2024. the cumulative transaction volume of domestic used cars in the first half of the year was 9.3829 million, a year-on-year increase of 7.01%. in 2023, the cumulative transaction volume of used cars in china was 18.4133 million, a year-on-year increase of 14.88%, an increase of nearly 30% over 2020.promote further trust in the industrywhat are the difficulties in second-hand car transactions now? in an interview with the global times on the 29th, zhao chunlin, vice president of zeekr intelligent technology, said that the most difficult thing is that the industry has low trust in the history and quality of second-hand cars. "this requires the industry to improve self-discipline and build customer trust, which may be the most urgent task at present." zhao chunlin believes that the current domestic second-hand car market chain is not yet particularly mature, but in about five years, the industry will gradually improve itself.li jia, general manager of the used car business department of car inc., said in a recent media interview that in the past, consumers' concerns about used cars mainly came from the lack of transparency in car prices and vehicle condition information. in his opinion, on the one hand, with the emergence of internet platforms, the information barriers that have long existed in the used car market have been broken, and price transparency has continued to improve; but on the other hand, the transparency of vehicle conditions has just barely passed, and there is still much room for improvement. li jia called for legislation and other means to force the disclosure of all vehicle maintenance and repair information throughout its life cycle, making the condition of used cars more transparent and allowing consumers to buy with confidence.xu guangjian, a senior observer of the automotive industry, told the global times on the 29th that in order to further optimize the old car processing process, it is recommended to first regulate the "gray area" in the car recycling process to avoid the phenomenon of "bad money driving out good money" where regulated recycling companies are unable to compete fairly with unqualified companies due to price disadvantages; secondly, the traceability of recycled car parts should be done well to ensure their quality during circulation and reuse.in order to promote the trading of used cars, many local associations and social groups such as industrial technology alliances have taken the lead in establishing group standards for the appraisal and evaluation of used cars. on march 15, ningbo issued the first group standard in the field of second-hand car appraisal and evaluation in zhejiang province, which is applicable to the appraisal and evaluation of four-wheeled used cars with nine seats or less, and has more detailed criteria for the appraisal of "major accident cars", "water-soaked cars" and "burned cars".online second-hand car trading platforms are also optimizing the transaction process. shenzhou used cars has established the "shenzhou auction" auction platform, which offers a variety of auction methods such as online auctions, on-site auctions, and simultaneous auctions. participants can bid on their mobile phones if they are optimistic about the car model and vehicle condition report. at the same time, shenzhou auction has a "0 service fee" for shenzhou's own cars this year.jd.com told the global times on the 29th that since january this year, jd auto has provided users with a one-stop service for scrapping, selling old cars and buying new ones. users can search for "auto trade-in" on the jd app to dispose of old cars and buy new cars. for old car disposal, users can click on the one-click valuation system for used cars or scrapped cars for online valuation. among them, multiple service providers such as guazi provide price comparison functions for used cars, and users can choose the one with the highest price. after disposing of old cars, users can buy new cars on the auto trade-in platform and enjoy subsidies.automobile companies are also becoming more deeply involved in the industry chain of replacing old cars with new ones. zhao chunlin said that in terms of used car recycling, the company had a relevant department to provide used car trading services when it was first established. "the entire life cycle of a car, from manufacturing, replacement to final recycling, can all be solved in zeekr. zeekr brand used cars can be refurbished through the official after-sales network and then returned to the market. the used car department not only purchases its own products, but also recycles vehicles of other brands, and relies on the resources of its parent company geely auto to certify used cars."drive more industrial chains"today's cars are becoming more and more like electronic consumer products such as mobile phones, and the pace of updates and replacements will be very fast." zhao chunlin said that new energy vehicles use a large number of intelligent functions. with the expansion of chip functions, smart electric vehicles are developing very rapidly. all vehicle manufacturers are working hard to provide users with more creative applications, which has promoted the pace of updates and replacements for automotive products and also allowed users in the automotive ecosystem to speed up the pace of vehicle updates.according to the asia daily on the 29th, the korea trade-investment promotion agency (kotra) released a report titled "the impact of chinese regional governments' promotion of trade-in schemes on korean enterprises" on the same day, showing that the large-scale equipment renewal and consumer goods trade-in activities being promoted by the chinese government in various regions are aimed at promoting investment and consumption growth through economies of scale, and are expected to bring new market opportunities to korean enterprises. ling ji, vice minister of commerce of china and deputy representative for international trade negotiations, said at a roundtable meeting on large-scale equipment renewal and consumer goods trade-in policies in july that china will support domestic and foreign enterprises equally in participating in large-scale equipment renewal and consumer goods trade-in."auto trade-in will have a positive impact on upstream production and manufacturing, as well as downstream automobile circulation and automobile maintenance." xu guangjian suggested that china's second-hand car exports should be further encouraged. "many of the scrapped and recycled cars in china are in good condition. parts including the five major assemblies can be recycled and remanufactured to meet relevant quality requirements. this will support the export of second-hand cars and achieve a win-win situation."the future used car export market is also extending an olive branch to china's new energy vehicles. a recent analysis article published by autohub, a japanese used car dealership platform, believes that "environmentally friendly cars" such as electric cars and hybrid cars are becoming popular in the used car export market. the article states that on the one hand, compared with traditional cars, their maintenance costs after purchase are lower; on the other hand, with the innovation and improvement of battery technology, the service life and performance of "environmentally friendly cars" are greatly extended, allowing them to maintain a high value retention rate in the used car market. ▲
