The new policy for used car circulation is good for compliant car dealers

1. Purify the market environment, get rid of competition from inferior currencies, and increase the premium of boutique car dealers

Completely eliminate black-hearted merchants who make profits by concealing vehicle conditions, adjusting meters, and accident vehicles

The new regulations force the traceability of one vehicle by one code, unify the contract, and conceal the condition of the vehicle and directly refund one compensation of three +500,000 to 500,000 yuan. The living space of retail investors, roadside dealers, and merchants who renovate accident vehicles is locked. There is less competition from peers who only make high-quality cars, and there is no need to buy low-price cars and compete with bad car dealers.

Consumer trust has rebounded sharply, and customer flow and transaction rate have increased.

In the past, buyers were afraid of stepping in on the pit and dared not buy used cars; now, legal test reports, official contracts, and mandatory quality guarantees are triple, and car purchase concerns have disappeared. The overall transaction volume in the market continues to rise, and compliant stores accept incremental customer sources.

The premium for premium vehicles in the original quality has been significantly increased

Accidents, soaking in water, and adjusting meters cannot be disguised. Buyers are willing to pay more for transparent and guaranteed high-quality cars. The profits of high-quality cars are more stable and the overall market is no longer lowered by problem cars. The residual value of vehicles is increased by an average of 5%-8%.

2. Liberalize national circulation, expand vehicle sources and customer sources in both directions, and broaden profit channels

Completely cancel disguised relocation restrictions, collect and sell cars across the country

Non-operating small cars at the national level and above can move freely across provinces and are no longer restricted by local policies; car dealers can go to first-tier cities to collect low-priced quasi-new cars and sell them to third-and fourth-tier cities, and make use of regional price differences to earn additional profits.

Trans-provincial transfer and electronic archives greatly save time and costs

Transfers in different places are handled in one window, eliminating the need to transfer files back and forth between the two places. A single vehicle saves transportation, agency, and time costs; inventory turnover days are shortened, funds are withdrawn faster, and the same fund can be turned over 2-3 more times a year.

The choice of vehicle sources is extremely rich, and the initiative to collect and negotiate is stronger.

Local slow-moving and unpopular models can be exported to other places, and local scarce models can be purchased from other places. The risk of slow sales of inventory is reduced, and there is no need to passively suppress prices and collect local low-quality car sources.

3. Reduce tax and transaction processes and reduce long-term operating costs

0.5% differential value-added tax long-term stable discount

Car dealers who have completed distribution registration continue to enjoy a simple tax deduction of 3% minus 0.5%, which is not available to pure brokers; the tax burden of formal distribution companies is stable, and illegal transaction service fees and file lifting surcharges in various places have been fully cleared to reduce additional expenses.

Reverse invoicing simplifies the vehicle collection process

Car dealers can issue purchase invoices themselves when accepting personal used cars, without having to go to the trading market to open them on their behalf. This improves the efficiency of car collection and reduces agency fees and labor consumption.

Standardized reduction of transaction registration fees

With a unified cap on transfer and file transfer fees and the elimination of various hidden miscellaneous fees, car dealers with high-frequency trading can save considerable processing costs throughout the year.

4. There are unified standards for operation to reduce the risks of legal disputes and after-sales wrangling

The Ministry of Commerce unifies standard contracts, eliminating the cost of formulating contracts and avoiding loopholes

The official template has clearly stated mileage, accident, mortgage, and warranty terms, and comes with fraud liability clauses; customer wrangling and subsequent rights protection disputes have been greatly reduced. In the event of unreasonable claims by customers, the contract has complete legal support, making rights protection easier.

Official inspection report for each vehicle and one code makes it easy to prove the vehicle condition

Vehicle condition records, maintenance and insurance incidents can be checked on the entire network. When buyers question the condition of the car, they can directly scan the code for verification, without repeated explanations or verbal evidence, reducing customer complaints and wrangling.

Standardize legal quality assurance, and standardize after-sales system

The policy uniformly requires a three-month/5000-kilometer warranty period for three major parts, and the industry service standards are unified; regular car dealers who originally provide quality assurance do not have to educate customers on "after-sales protection" alone. Customers generally accept quality assurance fees and extended value-added services to open up new profit points.

Capital supervision policies reduce customer distrust and make transactions easier

Third-party supervision of car purchases has dispelled buyers 'concerns about "rolling money and running away". The conversion rate of online live broadcasts and remote car bookings from other places has increased significantly, and the difficulty of obtaining customers online has decreased.

5. Policies are biased to support large-scale and brand car dealers will benefit first

Resources for special pilot projects of used cars in 8 cities are tilted (Shenyang, Chengdu, Xi'an, etc.)

Pilot implementation of a hierarchical credit system for dealers, and merchants with high compliance scores enjoy: online traffic support, industrial park venue discounts, bank special auto finance credit, simplified approval process, and priority application for trade-in subsidies.

Encourage brokers to transform distribution, support branding and host certification of used cars

The policy guides merchants to conduct standardized distribution and supports stores with self-built testing, maintenance, and after-sales workshops; the main engine factory certifies second-hand car channel and opens up cooperation opportunities, allowing them to obtain original vehicle sources and extended warranty supporting facilities to create differentiated competitiveness.

Second-hand cars going to the countryside and trade-in subsidies will be given priority to compliance registration dealers

Individual retail investors and unqualified intermediaries cannot apply for subsidies; regular car dealers can add replacement subsidies to enhance the attractiveness of transactions, use subsidies to benefit customers, and further increase transaction volume.

Online live broadcast transactions are standardized, and the traffic dividends of compliant stores are enlarged

Live car sales are mandatory to publish test reports, and accounts without qualifications and reports are restricted and blocked; in live broadcast rooms with long-term standardized operations and transparent vehicle conditions, the platform will continue to tilt traffic, making the cost of online customer acquisition lower.

6. Upgrade the profit model, get rid of the mere dependence on price differences, and increase income from value-added services

Extended insurance, maintenance, finance, and high-quality products have become stable new profits

Consumers attach importance to vehicle conditions and after-sales sales, and are willing to pay for extended warranty, full-vehicle maintenance, and low-interest financial packages; the new regulations standardize services, better promote value-added services, and improve the comprehensive income of bicycles.

The circulation facilities of new energy used vehicles are complete, seizing the second-hand air outlet of new energy

The new policy supports the testing and quality assurance specifications of new energy and three electric companies, arranges compliance car dealers of new energy used vehicles in advance, and relies on improving testing and after-sales sales to form differentiated barriers and seize the fastest growing market segments.

7. Long-term industry dividends: industry concentration has increased, and regular car dealers have become bigger and stronger

After the industry reshuffle, retail investors will gradually clear out, and the market will be concentrated in brand car dealers with exhibition hall, testing, after-sales, and national collection and sales capabilities; compliant car dealers can take the opportunity to expand stores, develop chains, and open up dual business of domestic sales + used car export. Long-term market share continues to rise.

Source: Xiong Yu, digital automobile export

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