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Will new energy overwhelm the used car market?


In recent years, the United Kingdom, France, the Netherlands, and India have announced timetables for discontinuing the sale of fuel vehicles. China has also started to formulate this plan. Therefore, it is a general trend for new energy vehicles to replace fuel vehicles as the main model.

The increasing proportion of new energy vehicles in overall new car sales also means that the proportion of new energy vehicles in the used car market will also increase, but this is the biggest crisis in the used car industry.

According to the data in the "2019 China Car Hedge Rate Report" issued by the China Automobile Finance and Hedging Rate Research Committee, the three-year average value preservation rate of mainstream new energy vehicles in China is only 32.31%, while similar fuel vehicles are generally about 60%. Some car dealers said that if new energy vehicles are rushed back, it is likely that they will not be sold for months or even half a year, and during this period, the risk of discounting the vehicles is also high.

In other words, if the problem of battery consumption of new energy vehicles is not solved in one day, it will be difficult to increase the value preservation ratio in the used car market. Once the proportion of new energy vehicles in car sales increases in the future, the used car market must If new energy vehicles are not accepted, then these used new energy vehicles will not be sold for a long time, which will directly bring down the entire used vehicle industry.

Data from a used car management system show that used car dealers in China sell about used cars with an average price of about 150,000, with an average gross profit margin of about 5%, which has continued to decline in the past two years. The average gross profit margin was only 4.6%. In the future, if new energy vehicles continue to be sold at such a low value preservation ratio in the used car market, excessive turnaround time will greatly increase the cost of the industry, and the average gross profit margin of used cars will be further reduced.

Therefore, there are already car companies exploring the residual value management model of new energy vehicles. For example, Weimar has established a used car detection system, a used car e-commerce platform system, a used car official certification system and a used car quality assurance system. Xiaopeng Automobile provides a new version of the 2019 G3 owners with a 40% discount to repurchase Xiaopeng Automobile's equity after 3 years.

However, these measures are doomed to the symptoms and not the root cause, and the source is still the battery.

Traditional fuel vehicles have been stable for 5-7 years in various aspects and do not require overhaul. According to current battery technology, it takes about 3-5 years to replace the batteries. What's more, the current replacement of new energy vehicles is more frequent. The longer they are used, the lower the value in the used car market and the lower the possibility of their being sold. As the current second-hand car practitioners worry, "If you rush to take back new energy vehicles, you will probably hit your hands."

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