The core logic of used car exports: shift from inventory thinking to sales and orders model

For a long time in the past, people making used cars in China have become accustomed to a fixed method of playing: collecting cars, preparing, hoarding goods, waiting for customers, watching the market, and betting on price increases. This logic may be feasible in the domestic circulation market, but it can easily become a fatal shortcoming when applied to the track of used car exports. Overseas markets are far away, chains are long, exchange rate fluctuations, policy changes, and shipping cycles are uncertain... If there is a problem in any link, the cars hoarded in your hands may turn from "assets" to "liabilities." If you want to move steadily and far in the used car export industry, you must complete an upgrade of bottom-level thinking: from inventory thinking to an order model based on sales.

1. Understand first: Two kinds of thinking are vastly different

1.& nbsp; Traditional inventory thinking collects cars first, and then finds buyers to hoard cars and gamble on the market. A large amount of funds are accumulated based on the price difference to make profits. The risks are highly concentrated and the cars cannot be sold, and the costs are increasing every day.

2.& nbsp; Based on the sales and purchase order thinking, order first, then purchase accurately matches vehicle sources according to the real overseas demand, light assets, fast turnover, and low risk without gambling on the market. Simply put: inventory thinking is "cars wait for cars", and order thinking is "people wait for cars".

2. Why must the order model be used for exporting used cars?

1.& nbsp; Uncertainty in overseas markets is too high. Different countries have different requirements for emission standards, years, models, and left rudder and right rudder. Blind hoarding of cars is very likely to occur: cars are collected but do not meet the access of the destination country; market conditions change and prices continue to fall; shipping delays and funds are locked up for a long time.

2.& nbsp; Capital efficiency determines the living space. There are many links in the export of used cars and a large amount of capital occupation. In the hoarding mode, all money is pressed in the car, resulting in slow turnover and weak risk resistance. Under the order mode, cars are just "passing goods", funds flow quickly, and the same principal amount can be made on a larger scale.

3.& nbsp; The industry is becoming more and more standardized, and the focus is on operational capabilities. With the improvement of used car export policies and stricter supervision, the era of barbaric growth relying on poor information and gambling on the market is over. In the future, the competition is: customer acquisition ability, supply chain efficiency, delivery stability, and risk control level. These are the strengths of the order model.

3. How to determine procurement based on sales?

1.& nbsp; Front-end: Build order capabilities first and deepen target overseas markets, clarify access rules and demand preferences; stably obtain customers through cross-border platforms, overseas agencies, and offline exhibitions; start purchasing after receiving clear needs or even deposits.

2.& nbsp; Mid-end: Precise procurement, not blindly collect vehicles, and strictly select vehicle sources according to order requirements: year, mileage, vehicle condition, procedures, and emission standards correspond one by one; strictly control procurement costs, and reserve clearance, logistics, maintenance, and profit margins.

3.& nbsp; Back-end: Efficient delivery, shortening the cycle, rapid preparation, filing and transfer, customs declaration and inspection, and arranging sea transportation; tracking logistics nodes throughout the entire process to avoid additional costs caused by port suppression and detention; delivering according to the agreed time to establish a stable reputation.

4. Write it at the end

Used car exports are essentially cross-border trade, not simple reselling of used cars. A truly mature export model has never been to compare who has more cars and hoard them for a long time, but to compare who has stable orders, fast turnover, and low risks. The shift from "hoarding thinking" to "order thinking" is not only a change in business methods, but also an upgrade of profit logic. If you have an order first, you will find the source of the car; you will determine the purchase based on sales, and you will fast-in and fast-out. This is the long-term core logic of used car exports.


Source: Xiong Yu, digital automobile export

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