Beijing used motor vehicle trading market was established in 1985. Because it is located in Huaxiang Bridge in the South Fourth Ring Road of Beijing, it is often called “Huaxiang Used Car Market”. In the context of “lack of cores”, the used car market in the past six months can be described as “a double world of ice and fire”. The owner of the car, Mr. Luo, previously revealed that he sold the car in August last year, and the Model Y was recalled at a high price. And Sina Technology recently visited and found that the “good things” that Mr. Luo encountered have disappeared.
Is it that new energy vehicles are not fragrant?
“After entering 2022, all pure electric models that are evaluated on-site will receive a 50% discount on the evaluation price (based on the price of a new car) for about two years, and a 40% discount for most of the three-year models. The value preservation rate is extremely low.” A second-hand The car appraiser told Sina Technology that the price of fuel used cars will no longer go up and return to rationality.
Visit: Why are used car prices falling?
In the whole year of 2021, many car companies are deeply troubled by “lack of cores” and reduce production, resulting in prolonged delivery cycles of new cars and reduced discounts. Under the favorable policies, many consumers turn to second-hand cars.
The influx of demand has pushed up the prices of some used cars. “Actually, it is more about BBA (Mercedes-Benz, BMW, Audi) and other used car prices. Some special car models (such as Camry, Passat, Teana) did not directly increase the price, but the price is very stable.” One of the used car market in Beijing Huaxiang A car dealer told Sina Technology.
The car dealer said that before October 2021, if you charge a Camry, the price will be the same as two years ago; brands such as Mercedes-Benz C-Class, BMW 3 Series and other flagship models will even charge a higher price than two years ago.
The reason why used car dealers are willing to collect cars at high prices is because they can be sold at higher prices after recycling. “When last year was good, a car didn’t stay in our hands for more than 6 days. The fastest way to collect it in the morning is to sell it in the afternoon,” said an agent in the used car market.
Many economical vehicles, such as Volkswagen’s Golf and Toyota’s Corolla, have been affected by the increase in used car prices, and the price decline has also slowed down significantly. “In 2019, I wanted to sell my golf, but the second-hand car dealer gave an evaluation of 35,000 yuan, which I thought was too low. When I resold it after two years, the second-hand car dealer offered 33,000 yuan. It is equivalent to spending 2,000 yuan. Yuan has been open for two years.” Ms. Che Zhan told Sina Technology.
However, this round of used car price hikes will end in October 2021. A used car appraiser in Huaxiang said that as the end of the year approaches, major brands generally have to push their annual sales, and dealers also have to clear their inventory. The delivery period of some models that are not so dependent on chips will not be too long. to discount offers.
The owner, Mr. Li, told Sina Technology that when he went to see Audi in August 2021, the discount was not as big as before, and it was almost negligible. By the end of the year, the discounts will be much bigger. “Let’s go to see it before the Spring Festival, and there are even a few existing cars with a discount of 20%.” He said that second-tier luxury brands such as Volvo and Cadillac have more discounts than before.
The aforementioned used car intermediary said that as far as the second-hand car market is concerned, the months from March to September are generally the off-season, and the prices of second-hand cars show a gradual downward trend. The peak season is from November to February of the following year. However, 2021 is an exception. From March to October, the prices of used cars continue to rise, so it is better to sell them than to buy them; starting from mid-to-late October 2021, the prices of used cars are relatively stable, and the prices of many cars are going down. go.
Used car prices are greatly affected by the supply and price of new cars. Sina Technology visited the 4S stores of Volvo, Cadillac, Audi and other brands and found that many new car discounts are very strong, and the highest discount even reaches 110,000 for a single car. Although Audi’s 20% discount is only a rare case, many popular models have also given discounts of 30,000 to 40,000.
“This preferential policy will be extended from the end of 2021 to the Spring Festival in 2022. For the Spring Festival activities, there are some additional discounts.” A salesperson of a brand’s 4S store told Sina Technology.
However, many used car dealers are still stepping up their car collection, hoping to seize the tail of the peak season to impact performance. “The price in February will definitely not be the same as in March, which is much lower than in February. So now we are all stepping up to collect cars and then ship them out.” A car collector in the Huaxiang used car market said that at present they are more Willing to collect some low-cost small-displacement cars, and then ship them to other places. “Best-selling models such as Mercedes-Benz C-Class and Camry, if the car is in particularly good condition, will now be charged,” he added.
Although prices have fallen, the proportion of new energy models in used car transactions continues to increase.
“A year ago, there was only one new energy vehicle out of 10 that we tested at our door. Recently, almost 4 out of 10 are new energy vehicles.” said a second-hand car platform inspector. , Many new energy car owners have already stood at the time point of 3-5 years to replace, such as the first batch of imported Model 3 car owners, it has been almost three years since now.
This was unimaginable a year ago.
The person in charge of a used car platform said that at the beginning of 2021, the market share of new energy vehicles is not high, and the price is more unstable, so the transaction ratio of new energy vehicles in many used car platforms is not high, “On our platform, 2021 There are only three or four new energy models on sale at the beginning of the year.”
By the end of 2021, the number and number of new energy models on the used car platform will increase significantly. Sina Technology found on multiple platforms such as Guazi used car, Uxin, and Renrenche that there are many new energy models on sale, including representatives of new car-making forces such as Ideal, NIO, and Xiaopeng, as well as Mercedes-Benz and Tesla. and other foreign brands.
According to the survey data of China Automobile Dealers Association, for the whole year of 2021, 50% of new energy used cars will be priced below 50,000 yuan, of which 28.02% will be below 30,000 yuan, and 30,000-50,000 yuan will account for 28.02%. The ratio is 22.98%. 82% of the new energy used car transactions are less than 120,000 yuan.
However, 63% of the new energy vehicles entering the second-hand market in 2021 will be less than four years old, and 22.6% of them will be less than two years old.
The used car market continues to boom?
From 2018 to 2020, the cumulative sales of passenger vehicles in China declined for three consecutive years, and did not return to positive growth until 2021. In stark contrast, in 2018 and 2019, China’s used car transaction volume maintained positive growth.
At the beginning of 2020, due to the impact of the epidemic, the transaction volume of used cars shrank. However, at the end of 2020, the transaction volume of used cars rebounded strongly. According to data from the China Automobile Dealers Association, in December 2020, the transaction volume of used cars in China exceeded 1.7 million units, even higher than the transaction volume in December 2021.
Statistics from the China Automobile Dealers Association show that in 2021, China’s second-hand car trading volume will continue to maintain positive growth, an increase of 22.62% over 2020. If the impact of the epidemic is excluded, compared with 2019, China’s second-hand car transaction volume has also increased by 17.84%, which is much higher than the new passenger car transaction volume.
In the past three years, the used car market has received more and more policy support, boosting the prosperity of the market.
In the government work report of the 2018 Two Sessions, it was proposed to “completely cancel the policy of restricting the relocation of used cars”. The March 2021 “two sessions” government work report mentioned “cancellation of unreasonable restrictions on used car transactions”. Subsequently, the Ministry of Commerce, the Ministry of Public Security, and the State Administration of Taxation issued the “Notice on Promoting the Cross-province Registration of Second-hand Car Transactions to Facilitate Second-hand Car Transactions in Different Places” (hereinafter referred to as the “Notice”) in April 2021, once again accelerating the promotion of second-hand cars. Cross-regional circulation.
From June to August 2021, the number of pilot cities notified has also been expanded from 20 to 218. Data from the All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce shows that after the implementation of the new policy, the proportion of local and non-local transactions has changed from 7:3 to 4:6. Consumers can go through transaction registration procedures at the place where the vehicle is transferred, avoiding the need to travel between the two places. It is time-consuming and labor-intensive, and transaction costs are greatly reduced.
The domestic second-hand car market is undergoing structural upgrades and adjustments, and there are even optimistic expectations that the transaction volume of China’s second-hand car market will stand before the 20 million mark in 2022. Luo Lei, deputy secretary-general of China Automobile Dealers Association, predicts that, benefiting from favorable factors such as the continuous “relaxation” of my country’s used car market restrictions, the transaction volume of used cars in my country will exceed 19 million in 2022, and will attack 20 million. .