December 23, 2024

Why does a used car C2C squeeze out 10% of profits?

C2C used car is plain, that is, the car in the previous owner's hand is sold, and the user who purchased this car can directly see and purchase the car on a certain platform.
The platform here is completely free or only receives information fees, warranty evaluation fees, and no other extra charges, it can be called a true C2C platform.
The consignment platforms previously known to us, such as Dazao, UW finished products, and Zhuojie line, cannot be classified as C2C. Because in their mode of operation, buyers and sellers did not meet, nor did they directly engage in fund transactions. Instead, they paid more to pay commissions or agency fees to the consignment platform.
What's more, the model of the consignment platform is only available for sales because its salespersons will eventually become eager to promote sales. The real C2C should be a win-win model for buyers and sellers.
The C2C that discussed the fire in the last round was to gather cars and cars for everyone.
However, I doubt that they are alleged to leave 10% of the profits earned by traditional used car dealers to buyers or sellers.
This kind of thinking must be put forward by people who have not really operated the actual income collection business of used cars. At least, our country's used car trading environment does not have such conditions.
Because a car can earn a 10% profit in a used car dealership or an oxen, but it can't sell 10% more if it is sold by individuals.
If the individual does not dare to buy a car from an individual, the transaction cannot be realized, let alone make a 10% increase.
The reason is because China's C2C market is not as active and mature as the US C2C market. This is not because the United States used car market is large, but the consumption habits of the US used car sales have been cultivated. Many American owners have already purchased many used cars.
Then back to China's used car market, 244 million car licenses, used cars only trade 0.1 billion vehicles a year. It is not difficult to see from this data that Chinese consumers have not yet developed the buying habit of buying and selling used cars.
Yes, spending habits can be cultivated. However, the habit of cultivating users to consume used cars requires a lot of capital cost and time cost. I personally expect that this process will take at least 3 to 5 years.
What kind of degree will be achieved in 3 to 5 years? That is, 5-10% of the used car transaction will be traded through various types of C2C platforms. After 10 years, it will reach 20%, and finally it will not exceed 35%. Because the various auction companies will occupy 30% of the market share, 10% of branded second-hand car dealerships, 5% of used car manufacturers, and 5% of consignment platforms, the remaining 15% of the trading market and the equivalent weight of cattle.

        The C2C time front is still relatively long. For now, what needs to be done to develop C2C?
I think that to find the so-called pain point for users is to find out why users do not go to personal hands to buy used cars, and why not sell them to individual users?
Through the investigation of users in Beijing, it is found that the biggest problem for car buyers is that they do not trust and worry about the condition of cars and procedures. After all, not everyone has a friend who is a used car and can help you see your car transfer. .
For car buyers, it is time cost is too high and concerns about transaction security. Taking Beijing as an example, it is difficult to make a deal in the same city in Beijing. The road conditions in Beijing you know, this is the time cost is too high. Trading security is what happens in case of a fraudster?
There is also a high level of fear of transfer procedures.
Solve these problems, in order to enable our users to trade with confidence, in order to achieve true C2C.
Another difficulty is that the transfer cycle, that is, you educate a user, then after he bought a used car, it will be 2-3 years slower then 5-6 years before it will be changed again. Therefore, the road to C2C is still very long and it takes a long way to go, but I am very optimistic.
But as soon as it comes up, we must achieve a certain level of legend in 2015. It is for investors, and friends in the industry do not need to spray people. After all, they are all doing business for users. Purely personal views, exchanges of personal views, and if there is something wrong, look for understanding.

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