Guazi launches a new-auto site at Maodou.com
14 Oct 2017
Guazi ershouche (瓜子二手车), one of China’s leading c-to-c, used-auto transaction platforms, launched a new site, fronted by superstar AngelaBaby (with 84 million followers on Weibo; on screenshot below).
Maodou (毛豆新车网) is a departure from Guazi’s used-auto roots, as it will retail only new vehicles, both on a direct-sale and a financial-leasing basis. The site operates on an online-to-offline model, with users arranging for the delivery of their preferred models to one of five “experience centers” currently in operation.
Maodou has already signed cooperative agreements with 20 auto manufacturers and will launch with 46 available models.
Guazi had previously ventured into new autos and a financial-leasing model with a “micro program” on Tencent’s social network and chat platform WeChat (微信). Called “Get a new auto with a 10-percent down payment” (付一成新车), it uses big data to determine a potential consumer’s credit score, before providing financing on what it calls a “1+3 mixed-lease model”.
Guazi, which is minority-owned by classifieds giant 58.com, is currently considered to be top of the heap in c-to-c used autos in China, ahead of rivals Uxin (优信二手车) and Renrenche (人人车).
In late September, however, Renrenche secured $200 million U.S. in funding from ride-hailing giant Didi Chuxing (滴滴出行). Renrenche reportedly will be rolling out a version of its transaction services within the Didi Chuxing app, tapping directly into a massive 400 million-strong user base.
Financial leasing was popularized in China by Tangeche.com (弹个车), a subsidiary of c-to-b giant Souche.com (搜车).
Yixin Group’s Taoche.com (淘车) also offers a financial leasing product called Let’s Go (开走吧). Let’s Go offers new vehicles with a down-payment of only 10,000 RMB ($1,480 U.S.), and the opportunity to either buy the vehicle outright or upgrade to a different model down the line (which we reported on here).
Earlier this month Guazi, working again with Baidu Finance, issued its first asset-backed security (ABS) product (which we reported on here). In November 2016, Guazi teamed up with WeBank to provide its first-ever in-house financing products.
Guazi estimates approximately 50 percent of the users of its platform is in need of some kind of financing, but only approximately five percent of used-vehicle purchases in China are currently financed by credit.