How does a used car cut into the Internet?

With the slowdown in the growth of the new car market in China in 2011, the sales volume only increased by 2.45% in the year, the lowest in nearly 13 years. The new car market in 2012 was also placid and did not show explosive growth (sales increased 4.33%). According to the data from the China Automobile Dealers Association, in 2012, the total volume of used car transactions in China totaled 4,791,400, an increase of 10.60% year-on-year; the transaction amount was 263.662 billion yuan, which was a year-on-year increase of 25.01%.

Because in the mature automobile market in Japan, Europe and the United States, used cars are the main force of the entire automotive market. In the United States, for example, the ratio of used car sales to new car sales is 2.5:1, which means that used car sales are 2.5 times that of new cars. In China, the ratio was 1:3.9 in 2012, and the volume of second-hand cars is much lower than the sales of new cars. There is huge room for growth in the used car market in China.

As of August 2011, the total number of cars in China exceeded 100 million, and is calculated as the annual increase in car ownership by 15 million vehicles. After 10 years, the total number of cars in China will reach 250 million, which is expected to be 20% in the United States. By 2021, China's annual sales of used cars will reach 50 million, which is equal to sales of new cars.

Four Business Models of Used Cars Cutting into the Internet

With the rapid development of the used car market in China, the Internet has penetrated into all aspects of used car transactions, including used car display, testing, evaluation, sales, payment, and logistics. The business model of used car service providers has also become more mature and more mature. Diversification.

Regardless of the used car business developed by the brand car sales company, apart from the traditional acquisition service providers (such as An Mei Tu second-hand car, Che Wang second-hand car) and information-driven second-hand car information service providers (such as 51 cars, the first In addition to a car network, in recent years there have been a number of innovative models of used car service providers, used car online auctions such as You Xinpai, Che Yipao, second-hand car trading services such as 273, Dazao, etc., on business models. Innovation has largely become the catalyst for the release of the huge market potential of the used car market at this stage.

Specifically, these Internet second-hand car service providers are mainly divided into acquisition, information service, transaction service and online auction.

First, acquisition type

Mode description:

The acquisition model means that used car dealers will first acquire used cars and then resell them to consumers and earn the difference.

At present, the second-hand car acquisition model is still the mainstream model of the domestic used car market. There are numerous market participants, including large dealers with annual sales of more than 10 billion yuan. The Internet, with its advantages of fast information dissemination and real-time performance, has become an important channel for traditional second-hand car dealers to obtain and publish used car information.

Second-hand car dealers obtain preliminary vehicle information provided by the owner through an online platform, and push the vehicle information to buyers through the Internet or mobile channels. Specific transactions can be conducted through offline physical stores. Typical acquisition-type second-hand car service providers include car king used car, Amway second-hand car.

Typical company:

Che Wang second-hand car: Established in November 2011, headquartered in Shanghai, the store has a total business area of ​​20,000 square meters and can accommodate 1,000 vehicles. It is one of the largest used car supermarkets in China so far. At the beginning of its establishment, the second-hand car of Chewang won the joint investment of the former Gome President Chen Xiao and Junlian Capital. Li Haichao, the founder of the car king used car, is a serial entrepreneur. He returned to China in 1999 and established a wireless service provider Pioneer Link (listed in the US in March 2004). In 2005, he established the 51 used car information platform car network. The second-hand car is the third company founded by Li Haichao.

An Amway Used Car: Established in May 2007, it acquires and sells used cars through a direct chain model, and provides value-added services such as assessments. As of June 2013, AtoMe used a total of five direct-operated stores for used cars, both located in Shanghai, and acquired and sold more than 15,000 vehicles each year. In December 2007, An Mei Tu was used to acquire IDG Capital and Haina Asia for a joint investment of US$5 million.

Second, information service type
Mode description:

The used car information service mainly focuses on the provision of on-line information services, providing a platform for both sides of the transaction to publish supply and demand information, and is the most traditional internet used car service. Used car dealers, brokerage companies, auction houses, and used car owners can publish car information on the Internet platform, and buyers can find vehicle information, evaluation information, and industry information that meets demand on this platform. At present, the industry's more representative second-hand car information service providers are the first car network, 51 car network, and the car company's Amoy car network.

After the platform has accumulated a large amount of used car information and resources of industry-related parties, used car information service providers can also provide market consulting services to car manufacturers, distributors, banks, investment institutions, and other third-party consulting agencies. In addition to online business, used car information service providers can also cooperate with car dealers to conduct second-hand car transactions and independent third-party inspections.

The income model of used car information service providers includes online advertising fees, market consulting fees, membership fees, and information service fees. Customers are mainly traditional offline car dealers, brokerage companies, and auction agencies.

Typical company:

51 Auto Network: It is a national second-hand car online information platform, providing consumers with a large number of real, professional and fast used car information. At present, the 51 automobile network has formed a comprehensive information distribution channel through the Internet, magazines and call centers, geographically now covers China's East China, North China, South China and Southwest China. So far, 51 automakers have completed two financings. In March 2006, they jointly invested 5.4 million U.S. dollars with Dragon Groove. In October 2007, they again received 4.5 million U.S. dollars in investment from U.S. capital.

First Carnet: Established in 2004, it is a used car information website and car data provider in China, providing information services and market research consulting services to used car consumers and practitioners. The website has published a total of more than 2.8 million used car information, and more than 5,000 new used car information have been added daily, covering all first-tier and second-tier cities in China's 31 provinces. In October 2006, the first car network received Lin Xinyi's investment of 1.85 million US dollars in A round of investment.

Amoy car network: for the Easy Car Company (NYEX: BITA) its second-hand car trading online information platform, launched in March 2006, formerly known as excellent card network (), in April 2012 changed its name to "Amoy car network." Amoy car network established a rigorous business credit evaluation system and second-hand car information identification, evaluation process, for users and used car dealers to provide inquiries, publish real and trusted used car information services. Amoy car network can be said to be one of the most used professional car websites that cooperate with major portal websites, and has implemented data sharing with Sina, Sohu, Tencent, Netease, Yahoo, tom, and Hexun.

Used car cut into four Internet business models <br> <br> Third, the transaction service

Mode description:

Unlike car dealers, although used car transaction service providers are involved in the entire automobile transaction process, they mainly provide core used car dealer brokerage services and extended online information services without earning a difference.

Trading brokerage service means that owners can publish used car information through online platforms. Used car transaction service providers help owners to find buyers and provide professional evaluations. Buyers can obtain vehicle information on the platform and pass offline information. Chain stores for further consultation. During the transaction, the buyer and the seller negotiate with each other. After the deal is reached, a certain percentage of the commission is charged to both the buyer and the seller.

In addition to commissions, service fees charged to vehicle owners (such as vehicle identification fees and assessment fees) are also an important source of income for used car dealers. After the trading platform reached a certain scale, the platform accumulated a large number of vehicle source information and buyer information, launched precise vehicle information push services, and received information service fees from buyers to achieve revenue. At present, the 273 used cars and large search vehicles are typical representatives of domestic transaction service type used car dealers.

Second-hand car transaction service providers mostly use the online and offline O2O model. The online information platform provides consumers with real and comprehensive vehicle information and provides vehicle information publishing services for owners; offline franchise chain stores provide second-hand cars for consumers. Certification, transaction negotiation, quality assurance and other services. And more and more second-hand car transaction service providers adopt direct-to-join approaches to quickly expand offline service networks and channels.

In terms of revenue model, in addition to service fees and commissions, offline store initial fee, transaction brokerage service fee (such as vehicle identification fee), and used car information service fee are the major sources of income for used car dealers. The possibility of auto finance business.

Typical company:

273 China Used Car Trading Network: In September 2003, 273 used car trading network was formally launched to provide vehicle owners and consumers with publishing and access to vehicle information services, and based on the online brand accumulation to explore offline offline car trading business model. The nationwide service system consisting of “network platform”, “offline chain store” and “customer call center” has been completed and the current network has covered the entire country. In 2009, 273 received Morningstar Ventures' $3 million Series A investment.

At present, the information on the availability of 273 used cars is 1.66 million units. The offline channel basically completes the national layout. As of May 2013, 273 used cars had 346 offline chain service outlets in 92 cities in 24 provinces in China; The average transaction volume of the shop was 11.56 million yuan.

The 273 used car introduced a solution to the problem of “transparent conditions, opaque vehicle prices, and payment security” in used car transactions: Che Jubao, which issued a report from the 273 Vehicle Condition Appraisal Center to disclose the condition of the car; Selling cars by way of online auctions makes the prices fair and reasonable; Che Fubao pays the third-party payment security system, the car payment is settled by car Fubao, and the payment is transferred to the seller only after the buyer's verification and transfer procedures are completed.

In order to allow its services to penetrate into all aspects of the used car industry chain, the 273 used car will also launch automobile finance services such as auto loans.

Da Souche: Founded in December 2012 by Mr. Yao Junhong, a founding team member and former executive vice president of China Car Rental, is a new member of the used car trading service field. The first store is located in Beijing Shiji Jinyuan Shopping Center, with a business area of ​​more than 20,000. Square meters, is currently being promoted on a large scale in the Beijing subway. In January 2013, Dazai Automobile received Morningstar Ventures and Yuandu Venture Capital for a total of one million US dollars in investment.

Used car cut into four Internet business models <br> <br> Fourth, online auction type

Mode description:

Online bidding is one of the best ways to achieve the circulation of used cars. Used car online auction companies mainly earn income by collecting commissions from car owners. Second-hand car online auction companies use the online auction system to conduct auctions. The parties to the transaction are free from geographical restrictions. The entire transaction can be completed without meeting and the transaction cost is reduced. Finally, the vehicle is captured by the buyer with the most suitable conditions, which improves transaction efficiency. When a consumer photographs a vehicle on a network platform and pays the car, the used car auction company can also send the captured vehicle to the consumer. Along with this surge, excellent second-hand car online auction companies such as Youxinpai, Che Yipai, Second Car Network, and Instant Beat have emerged in China.

Typical company:

You Xinpai: It is a second-hand car auction network service platform officially launched in September 2011. The platform integrates bid auction, vehicle inspection, safe payment, logistics transportation and after-sales service agency into a whole, and it is a brand for domestic auto manufacturers. Dealers, used car dealers, and large car companies provide real-time car auction services. At the beginning of the establishment of Youxinpai, it won the angel investment of Yibin CEO Li Bin and founder Dai Li; in April 2013, the company won four joint ventures of Junlian Capital, DCM, Bertelsmann, and Tencent Industrial Fund with a total of US$30 million. Financing.

Car Yipai: The company was established in 2010. It is the second-hand car auction network e-commerce platform of Beijing Jingfeng Technology, and it provides users with second-hand car trading services based on the standardized testing technology of 268V used cars. Up to now, Che Yi Pai has provided more than 30,000 sellers of cars with used car bids and car sales services, and continues to provide more than 100 4S stores for over 10 brands such as FAW Mazda, Guangzhou Automobile Honda, and FAW Audi. Used car auction replacement service. In 2010, Autocar won a million dollar financing.