Combined Capital And Policy: Second-Hand Car Market Is Expected To Usher In The Second Half Of The Blowout.

Just past March

Issuing financing news repeatedly seems to confirm the signs that capital markets will pick up in the spring.

In addition to capital, policies seem to be beginning to favor this industry.

In March 30th, the melon seed used car announced the completion of the A round of $204 million 500 thousand.

On the same day, everyone car also revealed that it was carrying out the D round of financing of about US $150 million; in March 31st, the strategy of car cat net was invested in the real car used by the national motor vehicle.

More importantly, in March 25th, the State Council issued the "eight national" - "opinions on promoting the convenience of second-hand car pactions" document, which undoubtedly gave the second-hand car industry a boost.

In view of the eight of the country, the China Automobile Circulation Association is constantly convening the industry to discuss the detailed rules, and Yang Haoyong optimistically estimated at the A round of financing of the melon seeds. "At the end of May, this policy will officially come out, and it will also release the limited purchase, finance, taxation, formalities and other policies. It is estimated that the second half of this year will be a blowout opportunity."

What can policy bring to second-hand cars?

Limited mobility is a major obstacle to the circulation of used cars. It may be irrelevant for melon seeds and everyone's car to be used as a C2C used vehicle business platform.

But it is very important for the B2C and B2B platform of the car cat network and the excellent credit shoot.

Car cat CEO Huang Wei told the titanium media that for off-road pactions, the proportion of 40% of its businesses was different. After the relocation policy was lifted, the sharing of vehicles between vehicles would be better completed.

It is understood that there are three major obstacles to the second-hand car dealings: the first one is to limit the movement, the second is the collection of value-added tax and the third temporary property rights system.

Huang Wei believes that once the tax is reformed and the temporary property right system is established, the second-hand car will become a commodity paction instead of an asset paction, which will protect consumers' rights better.

In an interview with the media, the chairman of the China Automobile Circulation Association also said, "the temporary property rights system provides a lot of room for the further operation of enterprises to provide after-sales service for consumers.

And if the way of VAT levied can be changed, China's second-hand car market will also undergo major changes.

For these policies, the impact on offline dealers may be far greater than that of the electronic business platform. But for B2B, B2C and other e-commerce platforms involving offline dealers and used car circulation modes, these policies will also greatly change their market structure.

"The scale of pactions between B2B and B2C is still far greater than that of C2C, and the C2C mode is more for local consumers, with limited paction scale."

An industry insider told titanium media that within three years, the B2B and B2C models might be able to "win or lose".

In the past year, capital has also changed the industry.

For most people who don't have the demand for cars, the concept of used cars in 2014 is still not clear. Maybe there are few more second-hand car business platforms.

But in the 2015 advertising bombardment, even if you do not buy a car, you can name one or two used car electric business car slogan.

The role of capital in the market is self-evident. At least, the concept of used cars has spread to more people.

Last year, CEO Li Jian, who also spent money in advertising, said to the titanium media that everyone cars will choose the mainstream media to advertise this year. In addition to promoting the brand, advertising is more important to convey trust to the users.

And Huang Wei said that although the cat did not throw money to do online advertising, but the role of marketing can not be denied.

"A few rich and ideal players are educating the market through advertising. This is a positive behavior. After all, most people understand the second-hand car more clearly."

He said to the titanium media reporter.

Capital also plays a role in promoting the birth of new players.

In September 2015, it used to be a fair car, renamed the second-hand car of melon seeds. It was valued at $1 billion for 14 months. In 2015, its sales totaled more than 3 billion 700 million yuan, and was rapidly ranked among the mainstream players of C2C used cars.

According to Shen Danyang, spokesman of the Ministry of Commerce, at present, there are about 172 million cars in China, and more than 24 million new cars are added each year.

The proportion of used cars and new cars in developed countries is generally over 1.5:1. According to this ratio, the annual volume of second-hand cars in the future is expected to exceed 36 million. According to the average of 55 thousand yuan, the paction volume is nearly 2 trillion yuan.

The total market share of second-hand car business is only about 20%. They still need capital boost to further change the traditional second-hand car trading pattern.

So many models, but used cars never make money.

In terms of mode, the complete second-hand vehicle paction chain should be "C2B2B2C", so the links of each second-hand vehicle business platform are not quite the same. They are specifically divided into four modes: C2B, B2B, B2C and C2C. However, for these modes, a certain "hand renewal" is the main mode of revenue collection, and some electronic business platforms even choose to give the "fee" revenue to the car dealer or C end user again.

Take the C2C mode as an example, 3% of the service fees for all cars and melon seeds used cars are charged.

Everyone car CEO Li Jian told titanium media that at present, the average car paction can earn about two thousand or three thousand per paction.

But to sell a car, everyone car also needs to pay human costs, operation costs, and marketing costs.

Li Jian told titanium media that the profit of selling cars is very thin. Auto finance and automobile aftermarket are good profit points, but the chain of second-hand cars is very long. Every node has corresponding players. It is to do or to open to third parties. It is a second-hand car business platform that needs to be considered clearly.

"The self built mode is too heavy, and it may not be very reasonable for the e-commerce platform focusing on the second-hand vehicle paction link, so we choose to give it to those who are better at it."

Li Jian said.

In the earlier reports of the titanium media, it was mentioned that the open ecosystem is one of its plans this year. Li Jian believes that the foundation of choice is whether it can provide users with better services. Auto finance, new car replacement and second-hand car auction already have enough professional platforms, so they choose to cooperate.

Li Jian's "abacus" is that every open ecosystem node can provide users with perfect services, and can also make Commission on the basis of cooperation.

"This year's goal is to hope that each paction can earn 8 thousand yuan."

Li Jian told reporters on titanium media.

Basically, there is no second-hand car business platform selling cars alone.

In the B2C mode, the car cat net adopts the way of joining. They pform the second-hand car dealer store under the line into a "car cat Certification Center", providing unified brand, financial products, passenger source and online Internet operation for the traditional dealers, signing 50 partnership stores within one month.

"Finance is the largest source of profit for second-hand car business."

Huang Wei told titanium media that the revenue of car cat will mainly come from the joining of second-hand car dealers and the charges of financial products.

Last year, the car cat joined Zhejiang Fu holdings and duqian net to set up a cat and Internet financial company, invested 10 billion to make second-hand car financial products.

In March 15th this year, "meow meow speed loan" formally launched the Face++ face recognition, and for its buyers can complete 2-8 million unsecured credit loans in 30 minutes.