On September 15th, under the guidance of Southern Finance and Economics All Media Group and China Automobile Circulation Association, and sponsored by 21st Century Business Herald and China Auto Finance, the 2021 China Auto Finance Closed Door Seminar (Shanghai Station) with the theme of "The Break and Stand of Used Car Finance" was successfully held. Through theme sharing and in-depth discussion, the guests looked for the difficulties and pain points of used car operation and used car finance, discovered the opportunities of the used car market, and explored the entry point of used car finance.
Wang Dani, Secretary-General of The China Auto (Finance) 50 Forum and Editor-in-Chief of China Auto Finance, shared the "Used Car Market and Used Car Finance Overview", she pointed out that in 2020, the sales ratio of new cars and used cars in China is 1:0.57, while the ratio of the United States and the United Kingdom is 1:2.4 and 1:4.1 respectively, and China's used car market still has a lot of room for growth. The crazy money throwing in the past few years of the second-hand e-commerce platform has not changed the pattern of the main body of the second-hand car transaction, and the second-hand car market is still the main channel for the second-hand car transaction. After the Chinese auto market entered the stock market from the incremental market, OEMs and dealer groups began to attach importance to the used car business. Used car finance also has huge market potential, and the imminent landing of the second-hand car temporary property rights system is a great benefit for used car finance, especially supply chain finance.
Wang Dani, Secretary-General of China Auto (Finance) 50 Forum and Editor-in-Chief of China Auto Finance
Wei Dong, vice president of Yongda Group, pointed out in the theme sharing of "Taking standardization and digitalization as the core to drive the upgrading and development of used car business" that the used car business is the most complex, longest chain and most difficult to manage business in the entire current 4S store business system. In the used car industry, there are four main participants: car dealers, e-commerce, dealer groups and individual transactions. At present, the more obvious trend of change is the rapid rise of dealer groups, and traditional car dealers are also upgrading and developing by leaps and bounds. With the introduction of favorable policies for used cars, the domestic head dealer group has taken the development of the used car business as a very important driving force for the current stock market to further achieve business scale and profit growth. Yongda's used car business also achieved leapfrog growth: in the first half of 2021, used car transactions increased by 71.9% year-on-year, distribution revenue was 897 million yuan, retail distribution gross margin was 9.13%, and new business growth was achieved through efficient use of stock resources.
Vice President of Yongda Group Wei Dong
Zhang Yuxiang, general manager of the used car development department of Ping An Bank's auto consumer finance center, said in sharing the exploration and innovation of Ping An Bank's used car finance business that the financial penetration rate of the second-hand car market will be about 30% in 2021, and it is optimistic that it may reach more than 35% by 2025. The scale of the used car financial market is expected to exceed 365 billion in 2023, with great market potential. The pain points of the used car industry have magnified the financial problems of used cars. Prudent and standardized is a long-term solution for the development of used car finance. Taking the direct operation of the team as the entry point, Ping An Bank has built a professional direct sales team, laid out the B+C financial service system, and built a second-hand car mall to create a one-stop service platform of "finance + trading + aftermarket", providing full-chain services and building a second-hand car ecology to enhance customer viscosity.
Zhang Yuxiang, General Manager of used car development department of Ping An Bank's Auto Consumer Finance Center
Guo Chun, assistant vice president of Yixin Group, pointed out when sharing the exploration and innovation of Yixin Group's used car finance business that there are two very core difficulties in used car finance, the first is reflected in the second-hand car trading link to financial risk prevention, and the second is that the second is that the financial risk management ability and risk acceptance ability of used cars are a very big challenge for the vast majority of financial institutions. In terms of channels, as the second-hand car finance industry has gradually entered a relatively mature stage, Yi Xin is also doing channel transformation, before 2017, all in the form of financial leasing, the current second-hand car finance business is basically directly operated, SP accounts for less than 5% of the entire business scale.
Guo Chun, Assistant Vice President of Yixin Group
In the discussion session, we had an in-depth discussion on the following issues: What kind of used car financial products do manufacturers need? What are the current difficulties and pain points of used car finance? How to solve it? How can technology companies help the used car business grow?
Wei Dong, vice president of Yongda Group, said that the second-hand car business has its characteristics, relatively speaking, there are still some differences between customer needs, characteristics and new cars, and there is a need for a better customer experience, including product introduction, rapid response, after-sales protection, etc., hoping to use good financial products to facilitate transactions, and continue to remain in the brand's loyal customer base. At this stage, the financial products of second-hand cars are not rich enough, and the financial penetration rate is low, which will lead to some customers being unable to solve the financing pain points of buying a car. It is necessary to have the empowerment and assistance of finance, make some innovations and breakthroughs, and then make positive contributions to the expansion of the scale of used car transactions and the improvement of consumer experience in the industry.
Jin Yongsheng, CEO of Turners Xinhuaxin Market Consulting (Beijing) Co., Ltd., said bluntly: The mention of "the first year of used cars" has been mentioned almost every year in the past, but it has come very slowly, mainly three "subject to": first, demand is subject to supply; second, the supply side is not strong, and the root is subject to the poor development of used cars of manufacturer brands; third, the development of official used cars of car companies is not effective, and from its internal point of view, it is subject to the backwardness of business thinking and business model. At present, the scale of quasi-new cars has been expanding, from the product point of view, the previous old and broken single structure is changing, and each brand has also launched its official used car, at least from 0 to 1 breakthrough, followed by a geometric growth from 1 to 100 to 10000, so at least every year is closer to the first year of used cars than the previous year. The development of the second-hand car market also means that there is a good foundation for the creation of financial products.
Jin Yongsheng, CEO of Turners Xinhuaxin Market Consulting (Beijing) Co., Ltd
In the view of Guo Chun, assistant vice president of Yixin Group, compared with new car finance, there is a lot of room for improvement in the future. "I think that in the process of the in-depth development of the second-hand car industry, there are indeed some problems that plague the industry. However, with the promotion of policies and the improvement of the trading environment, the second-hand car finance industry is expected to usher in greater development in the future. ”
Wang Zheng, general manager of the business department of Huake Financial Leasing Co., Ltd., directly pointed out that the biggest problem in the second-hand car finance industry now is the problem of transaction authenticity, which involves the problem of backdoorship, the problem of communication between car dealers and car dealers, and the problem of how to cooperate with each other in order to achieve their goals... The core problem is that the entire transaction management information is not transparent enough. Funds, car sources, people can not be separated from the transaction scene, most of the transaction scenarios are concentrated in the domestic first- and second-tier cities and even the second- and third-tier cities of the market behavior end, mainly shantytowns, which leads to the uncertainty of the second-hand car trading behavior scenario, which is the current market pain point, but also a problem that needs to be solved.
Wang Zheng, General Manager of The Division of Huake Financial Leasing Co., Ltd
Speaking of the means to enhance consumer confidence, SAIC Insurance sales of second-hand car project leader Gan Peihua, SAIC Insurance is currently trying to explore the residual value replacement guarantee combined with the financial leasing model in the new car sales end of the product side, for the vehicle two to three years or even five to six years of residual value can have a bottom, can enhance consumer confidence in the brand, to ensure that the vehicle price system is stable, but also can be often replaced, more in line with the needs of consumers.
Gan Peihua, head of saic insurance sales used car project
In the view of Lu Mingxiang, director of the Auto Finance Center of China CITIC Bank, for some manufacturers, although they have their own used car certification brands, the starting point for manufacturers to do used car certification is to solve the residual value problem and promote new car sales. Some manufacturers' own product lines and ownership determine the relative scarcity of the same brand certified car sources, resulting in a relatively thin demand motivation for manufacturers in the entire second-hand car chain. Dealer group multi-brand operation, the space and room for second-hand car certification is larger than the manufacturer's single-brand product line.
Lu Mingxiang, Director of Auto Finance Center of China CITIC Bank
As a third-party appraisal party, Fan Mingkun, executive president of Chee Valuation, said that looking at the entire auto loan asset transaction chain, the appraisal service can intervene in five major sectors: The first is in the product design link, usually, many back-end product personnel need to refer to the entire life cycle when designing products, and through the appraisal service, they can give a more objective and accurate reference. The second block is the second-hand car trading link, which transparents the condition and price of the second-hand car transaction through the evaluation service. The third block is the vehicle monitoring link, which monitors the changes of vehicle assets in real time, which is conducive to the control and management of assets by the capital. The fourth block is the standardized testing of pre-loan data and post-loan recovery vehicles. The fifth block is the asset rating process.
Car e-estimation executive president Fan Mingkun
Dong Guangming, chairman of Shenzhen Jurui Cloud Control Technology Co., Ltd., which also provides related technical services for the second-hand car business, said: "Our overall goal is to connect with the main body of the B-end through digital, systematic and platform operation, return to the customer from the customer, dig the pain points from the entire operation scene, solve their pain points, and cooperate with the implementation." ”
Chairman of Shenzhen Jurui Cloud Control Technology Co., Ltd. Dong Guangming
It is reported that the China Auto Finance Closed Door Seminar, as an important part of the 2021 China Automotive "Golden Engine" series of activities, has successfully held two closed-door seminars at Guangzhou Station and Shanghai Station this year, and will also hold Beijing Station next. China Auto Finance Closed Door Seminar (Shanghai Station) for more in-depth reporting, please pay attention to the third quarter of China Auto Finance in 2021.
Beijing Railway Station:
Theme: Status Quo and Countermeasures of Commercial Vehicle Finance
Date: October 2021 (proposed)
Location: Beijing (specific address will be notified 10 days before the meeting)
Tel:020-87385101
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