The rapid development of second-hand car replacement business discusses its advantages and disadvantages

With the vigorous development of the domestic used car market, the replacement business of used cars has developed very rapidly in these two years. Through a number of 4S shops, it has been learned that many 4s shops have improved their performance in the used car replacement business, and some 4s stores have already used more than 5% of their total sales. A few 4S shops observed that apart from some car buyers who came to buy new cars, a large part of the public mainly wanted to consult how to replace used cars.

The replacement business is basically based on the purchase of car invoices, you can buy the equivalent of used cars, or make up for the difference after the replacement of newer cars.

Talking about why many 4S stores are now targeting the used car replacement business, the industry also gave their own views: Now the new car sales have entered a relative low point, and near the end of the year, in order to complete the annual sales task, the various brands Dealers have to look to the “car owners” to drive car sales through replacement operations.

1. For 4S shop

Many 4S shops have been using used car replacement business for several years, but they have been in a tepid state. In the past year, a number of 4S stores have mentioned the replacement of used cars to an important position. Especially in the past six months, as the replacement policy has benefited the people, the daily sales of a number of 4S stores have significantly increased, and the sales volume has almost doubled.

2. For dealers

Although many brands of second-hand cars are currently buying old multi-brand cars, their brand cars will be replaced, which will constrain the expansion of acquisitions to some extent. However, in terms of operations, pricing, etc., the replacement of branded used cars can play a significant role in promoting market regulation. Therefore, in the next few years, branded used car replacement will dominate the pre-owned car trade.

3. For independent brands
Some self-owned brand 4S stores indicated that, in terms of used car replacement, in fact, 4S stores did not make any profit, but because the brand used car has a brand guarantee, after-sales warranty strategy is also in place, so many car buyers are willing to go to the 4S shop for replacement .

The so-called replacement of used cars means that consumers use the residual value of used cars to offset the purchase of new cars from the brand 4S stores. Because 4S stores have a good reputation, they can bring trust to consumers who carry out replacement operations, and provide more transparent, safe, and convenient services. Therefore, more and more consumers who want to change cars will now choose this service. In the replacement business, it is necessary to comprehensively consider the new and old car prices to truly benefit. In addition to paying attention to the brand, cost-effectiveness, and quality of the new car, consumers also need to pay attention to the price of their used car. However, this price should include both the old car price and the new car price. The most convenient is the replacement one-stop service of the 4S shop, which fully solves the customer's troubles in handling various procedures during the transfer process.

The reason why second-hand car replacement business has been developed to various degrees in various cities is because it has two distinctive features: First, it is convenient and convenient to worry about affordable prices, and second, it is the brand used car quality guarantee. For consumers, the replacement business is convenient and fast, and consumers simply sell the car to the 4S shop, basically no need to bother. 4S shop will fully handle (provide one-stop service for new cars and old cars).

The deficiency of the used car replacement business is that the purchase price of the 4S shop is generally lower than the overall market price of the outside market. From the data analysis, it can be concluded that the purchase price of the 4S shop is 8-90% off the market price.

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