·Used car market restrictions: 95% of cities are restricted to move in

In 2015, some car owners may have discovered a new problem: if they want to eliminate their own vehicles in the future, they may face a sharp price cut. The reason is that all parts of the country rely on “environmental protection” as the basis for painting. The implementation of restrictions on the use of second-hand vehicles in different places has been implemented, resulting in the obstruction of the national circulation of used cars, and the demand for used cars is severely constrained.

Two reasons for restrictions on localities

It is generally believed that there are two reasons for the restrictions on the use of used cars in different places. First, used cars are ordinary old cars. If they move in, they will exert certain pressure on the local environmental management. Therefore, local governments will generally restrict the movement of used cars in different places according to the local environmental protection standards for new vehicles. It is better to accept less used cars from different places." Another reason is that the immigration of used cars in different places will not only help the local taxation, but the future environmental protection (elimination of old cars) still requires local taxation subsidies. For every place, if you sell a new car, you can get more than 11% of the tax per vehicle, and you can still collect various taxes and fees during the re-transaction of the vehicle. There is no such benefit in the local area.

These two reasons all reflect the fact that the current restrictions on the movement of used cars in different places. In fact, like the new car market, the used car market is not a single market, but a market as a whole. The restrictions on the use of used cars in different places have fundamentally caused restrictions on the development of the local used car market. Regardless of the first-tier cities and the cities below the third-tier cities, the circulation of used cars has a beneficial effect on the new car market. Imagine that in today's market environment where the replacement ratio of new and old cars is higher (the proportion of new and old cars in Beijing has exceeded 50%), if there is no reasonable circulation of used cars, the new car market will also be severely constrained. A few years ago, in order to speed up the elimination of old cars, the Beijing market restricted the use of second-hand vehicles in the field, and implemented a subsidy policy for used cars that were relocated locally, thus speeding up the replacement of old cars to some extent, but nowadays Under the market environment with expanded scope of restrictions, the rising rate of replacement rates for new and used vehicles began to slow down. The new car market in Beijing began to experience negative growth, and the used car market was subject to certain restrictions.

Used car transaction tax-free fee adjustment

China's second-hand car market was born out of the production materials exchange market. After decades of development, although the number of private cars has reached 105 million, accounting for 90.16% of the total number of passenger cars, it still uses the used car brokerage model. . Buying and selling used cars only needs to go to the market to transfer the account, pay a certain transfer fee, you can complete all transactions of used cars. Many years ago, the relevant state departments once promoted the marketization of used car trading and gave car companies the right to use used cars. However, in this kind of used car brokerage environment, used car companies with management rights still use the old used car trading mode. It seems simple: the used car brokerage model can help companies pay less.

Therefore, no matter whether it is from the government or the industry, the used cars are not included in the market-oriented management system. It is widely believed that used cars are old cars, which are unfavorable for local environmental management. The industry still regards used cars as production materials, and does not regulate the market through taxation. Therefore, the current wide-ranging restrictions can be expected. However, despite the continued growth of the automotive market, in the first ten months of this year, the used car transaction was still completed with 7,537,900 units, with a turnover of 442.122 billion yuan. According to estimates, the volume of used cars will be more in 2016. It is expected to reach 10 million vehicles. Such large-scale second-hand car trading volume is still lacking in marketization, and it still fails to form several "legitimate" operating second-hand car enterprises. This is a sadness of the industry.

As we all know, there are large regional differences between the used car markets. Taking Beijing as an example, the number of cars has reached 5.4 million, ranking first among the 35 cities with more than one million cars. Such a high car ownership indicates that a city like Beijing has become the largest used car distribution center in the country, and the second-hand car distribution center like Beijing includes 10 Chengdu, Shenzhen, Tianjin, Shanghai, Suzhou, Chongqing, Guangzhou, Hangzhou and Zhengzhou. city. The number of cars in these cities is more than 2 million. It is a trend to eliminate a large number of used cars into the undeveloped markets in different places every year.

95% of cities are restricted to move in

According to the statistics of Beijing Huaxiang used car market in 2014, in the year with the highest volume of used cars in Beijing, the transaction volume reached 680,000 vehicles, of which more than half of the transaction volume entered the used car relocation market. Beijing's second-hand car moved to Jilin, Inner Mongolia and Shandong. Among the three provinces, Siping, Liaoyuan, Tonghua, Chifeng, Hohhot and Baotou are the main cities to move into; the second echelon is Xinjiang, Yunnan, Hebei, Liaoning, Henan and Heilongjiang. And in Shanxi, Gansu, Shaanxi, Guizhou, Anhui, Hubei, Jiangsu and Hunan, as well as Sichuan, Zhejiang, Ningxia, Qinghai and other dozens of markets, there are also a large number of used cars moving in. These immigrant cities are grounded as second-hand vehicles, not only facing environmental pressure, but also facing the loss of tax revenue.

It is precisely because of this factor that the first- and second-tier cities began to restrict the migration of used cars from different places and gradually spread to below the third- and fourth-tier cities. According to incomplete statistics, by the middle of last year, 95% of cities across the country had restricted the entry of old cars that could not meet environmental protection requirements. According to statistics in the industry, there are 12 national standards and above. In addition to the first-tier cities of Beijing and Shanghai, there are second- and third-tier cities such as Nanjing and Shijiazhuang, and there are even four or five-tier cities such as Zhangjiakou and Xingtai. There are 51 national standards above the national standard and only 2 national standard standards. This phenomenon has already begun to lead to the difficulty in moving the second-hand cities in the first- and second-tier cities with rich vehicle sources for more than 6 years.

According to the estimates of the relevant industry, if the transaction volume exceeds 10 million levels before and after 2016, the transaction volume will reach 550 billion yuan based on the average price of 55,000 vehicles. The compound car sales volume has a compound growth rate of 16.3% in the past 10 years. With reference to this growth rate, the used car transaction volume is expected to enter the trillion-dollar market within three years. However, to this day, the restrictions on the movement of used cars have not been broken, and the restrictions have seriously hindered the development of the used car market.

No need to break through the cage

Under the support of huge car ownership, the new format of the Chinese used car market is developing very rapidly. Around 2010, in the era of high growth in the used car market, there has been a second-hand car auction e-commerce platform that has left the tangible market, and has rapidly expanded around the 4S shop replacement business nationwide. Today, the e-commerce auction platform, which is dominated by Che Yipiao and Youxin, has occupied an absolute share of the used car auction market. After that, the traditional second-hand car auction companies also quickly participated in the number, reaching a number of hundreds, becoming an important part of the second-hand car circulation. In addition to the second-hand car auction e-commerce platform, in the market environment of the Internet +, various capitals have also begun to flood into the used car market, and the investment has reached 10 billion US dollars. These capitals are involved in the field of used cars B2B, B2C, C2C business, but due to The nationwide restrictions have led to a sharp decline in the price of used cars, and the actual transaction volume has been greatly affected. Therefore, most of the e-commerce companies are basically in the stage of brushing traffic in the surrounding areas, and it will take time to achieve profitability.

It should be said that there are many "predators" in China's second-hand car companies, but how to use their own advantages to break through the restrictions is the top priority for these used car companies. The general view is that under the current market environment of governance environment, second-hand car companies can only achieve a win-win situation if they participate in the local environmental management from the perspective of the government. At present, it seems that second-hand car companies must strengthen communication with the local government and start from their own to solve the two pain points of moving into the place. First, the car companies with management rights must carry out the necessary maintenance and repair for the moving vehicles. After the emission standards, legally moved into the local market; second, through the tax adjustment, giving the legal status of used cars, so that the ground can benefit from the used car transactions.

At present, it seems that there is still insufficient understanding of used car consumption in various places. If the reform can be used to make the use of used cars to the local economy and taxation, the cake in the used car market will eventually grow bigger.

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