"We firmly oppose the 'sales of 0-kilometer used cars' and other behaviors that undermine the order of the industry." On July 20, Jikrypton issued the above statement in response to the recent "0-kilometer used car" controversy.Previously, according to the China Securities Journal, Jikrypton was accused of treating a large number of insured and transferred inventory vehicles as new cars through its direct-operated store system and selling them to unsuspecting consumers with "limited time discounts" and other tactics, triggering a large number of complaints.
In a statement on the 20th, Jikrypton said: After investigation, the vehicles involved in the report are all show cars that can be sold normally. In order to ensure safety during the display period, although the exhibition car has been insured with compulsory traffic insurance, it has never been issued a retail invoice, nor has it been registered or plated as a new car at any vehicle management office. Its legal attribute is always an unregistered brand-new commercial car.
Regarding the crusade against "0-kilometer used cars", as early as May this year, Wei Jianjun, chairman of Great Wall Motors, mentioned in an interview that there was a chaos in the sales of "0-kilometer used cars" in the automobile industry. He said, "As soon as the new car was registered, it re-entered the market as a second-hand car. It seemed that it was sold, but it returned to the hands of second-hand car dealers. There are three to four thousand (second-hand car dealers) selling it, which is very chaotic."
One stone stirred up waves, and "0-kilometer used cars" quickly attracted attention.
What is a "0-kilometer used car"? Zhang Xiang, secretary-general of the International Intelligent Transportation Technology Association, told Times Finance, "For example, when national subsidies or corporate policies expire near the end of the year, the dealer will buy the car first and complete the vehicle registration procedures, invoices, etc. The car actually has an owner, but has not been driven, and the odometer is 0. After the '0-kilometer car enters' the second-hand car market, it is actually a new car, but its price will be cheaper."
The increasingly fierce competition in the domestic automobile market may give rise to “0-kilometer used cars”. According to industry insiders, in order to achieve sales targets, some dealers may first buy vehicles in the name of a company or individual, and then the vehicles will flow into the market for sale at a lower price.
In addition, Zhang Xiang introduced that some cars are exported to Eastern Europe and other regions in the form of "0-kilometer second-hand cars". "Because regular new car exports have higher tariffs."
"0-kilometer used cars" may increase the sales of car companies in the short term. Reading Motors, which once became the sales champion of low-speed electric vehicles, was reported by Caixin for a similar situation. A former mid-level employee of Reading Auto revealed that in 2018, Reading's real sales volume was approximately 150,000 vehicles, but it publicly stated that its sales volume was 287,000 vehicles.
"'0-kilometer used cars' will cause car sales data to be watery and unreal. In fact, it is an overdraft of the future market." Zhang Xiang said: "A lot of data on '0-kilometer used cars' can be queried online. If car companies use '0-kilometer used cars' It is easy to detect if the car is sold as a new car. It should be said that few car companies will take such a desperate risk. As a high-end new energy brand, if such a move is taken, it will cause great harm to its brand." Zhang Xiang believes that Jikrypton's statement is reasonable. "If any car company sells '0-kilometer used cars' as new cars, it will destroy its future."
As a high-end new energy brand incubated by Geely Automobile, Jikrypton can be said to be "born with a silver spoon in its mouth." Its first model Jikrypton 001 once sold more than 10,000 units per month. Since then, Jikrypton has further expanded its product matrix. Currently, Jikrypton 007, Jikrypton 7X, Jikrypton 009 and other models are on sale, covering multiple categories of SUVs and MPVs.
However, as competition in the new energy vehicle market intensifies, the sales of the Jikrypton brand have also come under pressure. According to the car expert, since March this year, the sales volume of Jikrypton 001 in a single month has been less than 3,000 units. In the first half of the year, the Jikrypton brand sold a total of 90,740 vehicles, a slight increase of 3% year-on-year, completing 28% of the full-year sales target of 320,000 vehicles.
In the automobile market, it is not uncommon to use car exhibitions as a means of promotion. For example, at the beginning of 2024, Times Finance learned from a new energy manufacturer that at that time, all its exhibition cars could receive a discount of 24,000-40,000 yuan, and the discount range varied depending on the age of the vehicle.
In a clarification statement on July 20, Jikrypton emphasized that exhibition cars usually have 3-5 months of storage age, so discounts and explicit sales will be based on the display history or storage age of commercial vehicles. Consumers who purchase the new car also enjoy all the car rights of the first owner of the new car. This discount sales model for new energy exhibition cars is a normal business practice and is essentially different from "second-hand car" transactions.
Zhang Xiang told Times Finance that, unlike "0-kilometer second-hand cars," the show car has not been transferred and may have purchased compulsory traffic insurance. "Purchasing compulsory traffic insurance for exhibition cars may be due to safety considerations. For example, if an exhibition car makes a mistake and suddenly starts up during an auto show, you can make a claim if you purchase compulsory traffic insurance."
"On the consumer's order page, we have clearly marked the nature of the vehicle and effectively safeguarded the legitimate rights and interests of consumers." Jikrypton said.
At present, many parties in the industry are calling on relevant departments to rectify the "0-kilometer used car" chaos. According to the Daily Economic News, at the end of May this year, the Department of Consumer Promotion of the Ministry of Commerce convened a symposium with car companies and related industry organizations to standardize and rectify the "zero-kilometer used car" chaos, and at the same time guide the export of used cars.
For consumers, buying a “0-kilometer used car” may involve hidden worries such as not being able to enjoy the rights of the first owner. How should they identify this during the purchase process?
According to official media reports from the China Automobile Association, it is recommended that consumers first check the registration and production dates to avoid purchasing vehicles with more than 6 months of inventory to prevent buying "quasi-new cars" that have been overstocked for a long time; secondly check maintenance records: confirm whether the vehicle is a test drive or a show car through the 4S store (or car company) system to avoid buying "highly used" vehicles; thirdly check third-party inspection reports: focus on battery health, tire wear, chassis damage and other indicators to avoid buying "hidden disease cars".