Data released by China Automobile Dealers Association shows that in June this year, the trading volume of used cars exceeded the retail volume of new cars for the first time.

However, the expansion of the used car market does not mean that life for car dealers will be better. The sharp fluctuations in new car prices are accelerating downward to the used car market, pushing up the operating risks of car dealers. In particular, the impact of domestic new energy vehicles on the price system of luxury brands such as BBA. Real-time data on the Dasou platform shows that the price of the Mercedes-Benz C-Class 2025 model dropped from more than 220,000 to more than 180,000 in just 20 weeks, a drop of about 17%. The BMW 3 Series, Audi Q2, and Lexus ES also declined steeply.

Such price fluctuations have brought huge challenges to used car dealers in judging the timing and pricing of vehicles.

"The core risk of used car dealers lies in the fact that today's new car sells for 100,000 yuan. I paid 80,000 yuan for the same used car. As a result, the new car will become 80,000 yuan tomorrow, and the used car in my hand will be ruined." Yao Junhong, founder and CEO of Dasou Car, said in a recent interview with First Financial News that the risk of used car dealers lies in the inventory cycle. The more volatile the market environment, the more digital tools can help car dealers avoid risks.

"In the era of stock, replacement will become the mainstream of automobile consumption, and the total circulation of used cars will continue to expand. But at the same time, the logic of the industry is also changing. In the past, it relied on information differences to make price differences, but now it has entered the era of small profits, striving for turnover, inventory management, and Risk control." Yao Junhong said that as the price war for new cars continues to spread downward to used cars, intensified competition will also accelerate the industry reshuffle, and car dealers who cannot actively improve operational efficiency may be eliminated.

In this regard, Dasou Car launched the "Big Windmill" system, which is a full-stack operation system for the B-end of used car dealers. It is an IT infrastructure for China's used car industry to move from traditional business methods to digital, networked and intelligent operations. Yao Junhong introduced that the market share of the windmill system is more than 90%, covering more than 60% of the second-hand car dealers nationwide, and managing the purchase, sales and storage of more than 1.7 million second-hand vehicles in real time.

"The earliest thing we solved was the problem of car dealers without Digital tools for operations. Today, with the development of AI technology, we are entering the intelligent stage-from helping car dealers manage their business to helping car dealers make business decisions. "Yao Junhong said.

Through the data on the windmills and AI intelligent assistants, car dealers can make decisions about purchasing models, purchase prices, and sales prices smarter than before. In the past, software told car dealers "how many cars are in the inventory." In the future, AI will further tell him "which cars should be sold as soon as possible and at what prices." In the past, the system recorded how much a car cost to purchase. In the future, AI will help determine "whether this car is worth receiving."

In addition, with the iteration of new cars, a large number of new energy vehicles are gradually flowing into the circulation of used cars. Yao Junhong said that new energy vehicles are changing the way the used car industry operates."You can understand the supply of new energy used vehicles as the entry of a new brand. The process from niche to mass, and the market will slowly adapt."

At present, 36% of car dealers have begun to operate new energy used vehicles. "Second-hand car dealers who have purchased new energy vehicles within one month account for about 36%." Yao Junhong said that this means that 36% of car dealers have already "stepped in" and are operating new energy used cars. The acceptance process of new energy vehicles by car dealers is gradual, and this proportion is still increasing.

In the used car market, the performance of new energy vehicles has a linkage effect with the new car market. "Whoever sells a new car sells better will sell a second-hand car." Yao Junhong said that Tesla, for example, has always been one of the second-hand car industries with relatively stable residual value ratios, and other leading new brands have also performed well in residual value.

Changes in the residual value of used new energy vehicles are one of the topics of greatest concern to the industry. "When the early ownership was low, a new hit car was very popular and the residual value of the used car was also high, but it was phased and could not be supported in the long term because the overall user base was not big enough." Yao Junhong said that as the number of possession increases, the situation is changing. The larger the number of cars, the more stable the price and the higher the residual value rate. "Maybe one day, you will find that the value preservation rate of new energy is higher than that of oil trucks."

Data transparency is the "natural advantage" of new energy vehicles. In the era of fuel vehicles, odometer tampering is a long-standing problem in the used car industry. Car dealers judge the true mileage by looking at the wear of the steering wheel and the rhythm of the pedals."That is too professional for small white people to jump on it. It is entirely based on experience and there is no digital basis." Yao Junhong said. New energy vehicles have changed all this."The digital traces of the trams are fully made, and the battery status, charging records, and historical data of the three power companies are all clear at a glance. This will be more transparent and helpful for future used car transactions. "But the key lies in whether manufacturers are willing to open up-" It depends on how much content these manufacturers are willing to open up."

Source: First Finance and Economics

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