NET test water Used cars: Do you know how deep the water is?

Although already premonition that the second-hand car industry will have the big capital to enter, but Net's movement still lets the industry personage surprise. December 2, net held a conference in Beijing, announced the Fair Car Project on line, the company officially entered the O2O field of second-hand cars.

Unlike other second-hand car sites, the business model Net said that its biggest aspect is, in the Fair Car Project, the first Consumer-to-consumer trading model and one-stop integration transaction services, the traditional second-hand vehicle electric business model into a real sense of personal, trading service platform and transaction security platform, Thus eliminates the traditional second-hand car trade link information opaque, the middle expense is too high and so on the malpractice.

The announcement immediately sparked concerns about the business model of the second-hand car industry. As one of the first Web sites engaged in online trading and data analysis of used cars, Lin, deputy director of the first Vehicle network data center, told the 21st century economic reporter that they were studying the business model of a good car project in the market, but declined to comment on it.

In fact, in the context of the more restrictive policies this year, the traditional second-hand car trading model is being seen by more and more second-hand car operators because of the declining return on investment. From the electric business model to find a breakthrough, is this year, the common choice of second-hand car manufacturers. They want to use the network platform to achieve the Consumer-to-consumer trading model of second-hand cars, but the complexity and repetition of information makes them think that the realization of personal point-to-point trading is not as simple as imagined, even if the market good car is difficult to fully transparent information.

The traditional pattern goes to the end

Looking for a new business model is almost the subject of all used cars this year. "No way, if according to the traditional mode of operation to do second-hand cars, now basically do not make money." "A second-hand car dealer, who declined to be named, told reporters that it is difficult to buy and sell second-hand cars in a formal way."

"A second-hand car valued at 100,000 yuan, if 5 points of the Commission profit as the goal, then the formal preparation of the transfer fee is 1200 yuan, 4S store requirements to use resources to paint the cost is 800 yuan, car washing time is a week, if the quality is not good, sales have difficulties. So a 100,000-yuan second-hand car to labor, petrol, land, renovation, time costs and other costs together, costs close to 4000 yuan, it is difficult to make money. ”

The second-hand car dealer told reporters that this year 4S stores general stock pressure, the current nearly 50% of the dealers are negative profit management, and the second-hand car business profit margins are worse. Many second-hand car businesses are exploring a diversified business approach, including building an internet platform, to the platform to invest money to do the scale, trying to create effects through scale, but only to scale up this one link, it puzzled a lot of people.

In the Joint venture fund general manager Li Jianche, now the problem of used cars is that the whole industry does not have a leading enterprise, so low prices often become a business competition, but this is not a long-term solution. With the advent of mobile internet, information symmetry becomes the new demand of the market, it requires the second-hand car business as long as the corresponding supporting services can be, but this needs the scale of funds, so for second-hand cars, big operators to enter, the big capital follow-up will be the future trend of development.

In fact, some commercially sensitive investors have begun to lay out in the field. From the end of last year to the beginning of this year, Sequoia Capital, Jingwei Chong Investment, Morning Hing Venture Investment and other large number of investors to tens capital into the second-hand car e-commerce trading platform, they are waiting for the Chinese auto replacement and the arrival of second-hand cars.

Some people in the industry are expected to experience the 2010-2011 Car Sales Peak, with the Chinese transfer cycle of 4 years to calculate, this two-year second-hand cars will be a burst of growth, the demand for related services will become more and more.

But the problem is that the properties of used cars are different from the new car, it's each car because of the condition, the maintenance of different conditions, are separate products, so it can not be like a new car, the same model of a price sales, but the need to form a set of price mechanism for each second-hand car products pricing, in order to make large used vehicles across regional scale transactions. But the price mechanism does not yet have a successful E-commerce website, including NET, which has just announced its entry into a second-hand car.

The pain point of the car Consumer-to-consumer

And the domestic already appeared business-to-business and the transaction mode of the trader is different, net this proposed second-hand car trade pattern is consumer-to-consumer, hoped by this reduces the second-hand car the information communication cost and each link cost, causes the transaction two ends to realize the information seamless docking.

This is a very bold attempt. Prior to this, many second-hand car dealers or investors, have attempted to use the Internet platform to open the personal and personal second-hand car trading channel, but because the second-hand car exchange needs of multiple nodes.

Compared with the new car, the consumer-to-consumer of the second-hand vehicle exchange needs the node coordination including: Information search, analysis, docking, vehicle quality inspection, valuation, the security of the transaction process, after-sale warranty and so on. Each node, in addition to the need for large data support, but also the involvement of third parties. At present, there is not a Web site in the industry to achieve all the information symmetry of the car, providing information flow services.

Although as a provider of classified information service, Net thinks its information superiority and the possibility of business extension, can realize consumer-to-consumer after expanding the information domain of O2O, but from the expression of its business model, it still does not revolve under the cooperation of the team.

According to the market good car project leader Wang Xiaoyu Introduction, in the design of the model, in order to build the trust of buyers and sellers, the market good car Che Yuan strict restrictions on the platform on the seller's car can only be 6 years within 100,000 kilometers of personal used cars, and to this end set up a professional vehicle assessment testing Team In order to reduce the buyer's trouble in the car, market good vehicle project personnel will accompany the whole transaction, free agent transfer.

This is actually the e-business model that most of the second-hand car makers are trying. Zhang Yajun, the financial services director of Beijing Czech-Yatai trading company, told reporters in order to reduce the cost, they now set up the business model is, and excellent letter clap, car easy to clap such E-commerce Web site cooperation, their own appraiser responsible for overcharging, excellent photo and car Easy PAT is responsible for sending people to do testing, valuation, and then upload the car information to the network. After the sale of the car, the profits to the Czech-Thai, the car easy to beat and excellent credit only charge 1%~3% commission.

The market good car project and the difference is that the source of the vehicle from the second-hand car to become a consumer individual, and the middle of the third-party assessment and trading agent by net own business. Although this design eliminates the second-hand car business link, but a series of unavoidable question is, how net lets own vehicle appraisal inspection team to obtain the transaction both sides the trust? Who is responsible for the later maintenance service after the vehicle transaction is completed? If it is an off-site transaction, how can net guarantee the security of the transaction process? (Edit Xu He Fang)