The State Council executive meeting held recently pointed out that for small non-operating used cars, the move-in restrictions will be completely lifted from August 1, and the transfer registration will be separately endorsed and temporary license plates will be issued from October 1. What impact will the full cancellation of used car restrictions have on the auto market?
First of all, the accelerated circulation of used cars is conducive to the consumption of new cars. Restricted relocation of used cars, restraint of taxation methods, and lack of temporary property rights registration were once considered by the industry as three problems that hinder the convenient circulation of second-hand cars. In May 2020, after the implementation of the second-hand car value-added tax reform policy, the cancellation of relocation restrictions and the restoration of used car commodity attributes have become the main breakthrough directions of the industry. In May of this year, the State Council issued the "Notice on Printing and Distributing a Package of Policies and Measures to Stabilize the Economy", which clearly abolished the policy of restricting the relocation of used cars.
At present, most cities have canceled the restrictions on the relocation of used cars, but there are still “National VI” thresholds in key areas such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta. city market.
Because consumers in some developed areas cannot buy second-hand cars in the “National Five”, some high-quality used cars are undervalued in some cases, and car owners are reluctant to sell cars at low prices to update their vehicles. With the implementation of the policy, the source of used cars will be circulated unimpeded across the country, improving the level of rational utilization of resources, and will also encourage used car owners to update and replace new cars.
Secondly, the gradual establishment of the temporary property rights system for used cars is conducive to the sustainable development of dealers. According to the current policy and transaction process, used cars are more defined as "asset" rather than "commodity", and their ownership is transferred after the transfer, not when it enters the circulation field.
Used cars can be freely circulated after restoring their commodity attributes. Before the end user purchases, there is no need to pick up the car, transfer the ownership and other processes for each transaction, which will greatly reduce the cost and improve the turnover efficiency. At the same time, used cars are recorded according to commodities, and they can also be mortgaged in banks to obtain financing, thereby helping used car dealerships grow rapidly.
Thirdly, the implementation of separate endorsement for the transfer registration of used cars is conducive to regulating the market. At present, used car transactions are mainly carried out in the used car market, and many used car users who replace new cars also sell their cars to the used car market. And many auto 4S dealers will resell the used cars directly to used car dealers when they buy old cars to replace new ones, so many used cars from such dealers flow to the used car trading market.
Under the circumstance of implementing the policy of transfer registration and separate endorsement of used cars, used cars may be refurbished within the dealership system, and then sold as brands within a dealership group. Since the sales process of the auto dealer group is relatively simple, and the dealers have a certain quality assurance for the used cars of their own brands, consumers can replace and buy used cars with confidence, which is conducive to the circulation of used cars, enhances the brand reputation of used cars, and accelerates the renewal of new cars. .
