Second-hand car market performance differentiation

“Now the 'BMW Premium Used Car' is not the initial stage of losing money and earning money. We began to make profits.” On September 8, the used car manager Pan Wei of Bao Zexing Automobile Sales & Service Co., Ltd. introduced BMW’s pre-owned used car. When business is developing, his face is full of smiles.

In August of this year, for example, Baozexing purchased a total of 84 used cars (including BMW and other brands) and sold 77 vehicles, of which 10 were used cars of BMW. It is worth noting that Bao Zexing’s new car purchases in the month were in a loss situation, while the used car trading business contributed 15% of the entire store’s earnings. Although BMW's pre-owned used cars are still in the early stage of sales, the source of profit is still only from the difference, but due to the good prospects, Bao Zexing has plans to expand its business and choose the opportunity to enter the after-sales field of used cars.

However, compared with the booming situation of the brand-approved used car business such as Baozexing, the performance of the used car market in Beijing is hardly optimistic. Since entering 2013, Beijing's used car transactions have been relatively sluggish. In the first half of this year, only 318,700 used cars were sold in Beijing, a year-on-year decrease of 31.9% from the previous year. The average rate of emigration was 40.1%, a decrease of 10.2% from the same period of last year.

On September 8th, Xiao Nan, Marketing Director of Beijing Old Motor Vehicle Trading Market Co., Ltd. complained to reporters: “In September, the situation improved slightly compared with the first three months, but compared to this time last year, the traffic volume decreased. It's too much."

Insiders pointed out that for the traditional second-hand car market transactions, its current evaluation system is not perfect, and there are many problems in after-sales service. Since the technology is not detected, the seller may intentionally conceal some defects and even provide false information to deceive the buyer. The emergence of branded second-hand cars made it possible to solve the above-mentioned concerns of car buyers.

However, most of the brand-certified used cars are 4S store operations, which are authorized by the manufacturers, standardized in management, safe and reliable, and the process is transparent and open, and the warranty and after-sale protection are guaranteed. Take BMW's pre-owned used car as an example. “Strict selection criteria for 5 years or 120,000 kilometers, 100 professional technologies and safety inspections, complete and authentic vehicle driving and maintenance records, and maintenance guarantees for all BMW original parts”.

High-end used car market

At present, there are a number of car companies that use brand certification for used cars, such as the Shanghai General Motors new used car, Dongfeng Citroen Longxun used car, Dongfeng Yueda Kia sincerity used car, Guangzhou Automobile Honda joy used car, Guangzhou Automobile Toyota hearty used car And so on, but brand-certified used cars are not yet the main business. In addition, the traditional second-hand car market trade still occupies certain advantages because of its price advantage.

But specific to the high-end used car field, this situation is quietly changing. At present, BMW's premium second-hand car as the representative, Mercedes-Benz Starcraft used cars, Audi recommended second-hand cars and other high-end brands used car business development is good.

"On the purchase of high-end used cars, people are less sensitive to prices than mid-size cars. The weight of brand awareness and reputation is increasing," said one industry insider. A second-hand car brokerage company in Beijing named Zhuo Jie Xing, whose main trading vehicle price is about 100,000 yuan, is rarely seen in high-end luxury used cars.

“Compared with the transactions between the traditional big market and used car dealers, the branded second-hand car business is more reassuring.” On September 7, Beijing Zhuo Jie, vice president of the old motor vehicle brokerage company Yuan Bing Indicated.

BMW prides itself on using second-hand cars to make people feel at ease. After the consumer purchases BMW's pre-owned used car, BMW provides a 12-month or 20,000-mile warranty for the used car (which is limited to the first-timer), as well as a one-year roadside assistance, and provides agency procedures, vehicle replacement services, and contact claims. Wait, this is almost the same as buying a new car.

Through the use of second-hand cars to explore the market, "BMW's selection of second-hand cars launched, to provide people with the possibility of having a low-cost BMW. Used car business in the future will certainly snatch the new car market. For example, our store downstairs new car now has no X3, In order to prevent the loss of this customer, we will recommend him to buy a used BMW X3." Pan Wei said.

In fact, BMW is using low prices for used cars to attract those who buy new mid-size cars, and is sneaking down the market. Since then, with the improved financial capabilities of BMW's used car owners, due to the brand loyalty of BMW's used cars previously cultivated, they are likely to grow into BMW higher-level new cars or users of higher-level used cars.

As a result, BMW can use its used cars to build a highly competitive luxury car system in China together with the new car and increase the value of the new BMW car. This will help further enhance the brand loyalty of BMW's original owners. This will undoubtedly have a certain impact on the entire luxury car market.

From 2006, BMW introduced the pre-owned used car brand into China. In 2011, the sales volume reached 10,000 units in a single year. In 2012, the sales volume in one year soared to 15,000 units.

"Restriction" brings opportunity

While the traditional and scattered second-hand car business is being hit by restrictions on purchases and restrictions on relocation, branded used cars, especially high-end brand-certified used car businesses, have ushered in opportunities for development.

Experts generally believe that the purchase restriction policy makes the car buyers tend to choose higher-priced, higher-quality brand models. As a result, BMW has chosen fertile ground for the use of pre-owned cars.

According to a BMW dealer in Beijing, for the BMW brand, the odds of buying a new car and a used car with a number that is not easy to shake are almost as high. This is unexpected.

After Shanghai, Beijing, Guangzhou, and Guiyang implemented the automobile purchase restriction policy, there were rumors that Tianjin, Shenzhen, Hangzhou, Chengdu, Shijiazhuang, Chongqing, Qingdao, Wuhan and other eight cities may also impose restrictions on purchases. With the expansion of the scope of purchase, the development of high-end certification brand used cars may become an important force affecting the entire used car market.