I want to be emperor

Chapter 1204 The Disappearance of the Carriage

It was a long journey, which was pretty good for Jiao Tiancheng in the beginning, but not so good in the ending.

Who could have thought that an old friend would suddenly die of a serious illness.

After simply helping to deal with the aftermath, Jiao Tiancheng returned to Songjiang with his old friend's eldest son and his own family.

He placed his old friend's eldest son in his own auto repair shop and asked an old auto mechanic to take care of him and teach him carefully.

As for Jiao Tiancheng himself, he returned to his busy life as usual.

However, he is not busy with the auto repair business. In fact, his auto repair business is now relatively stable. The three auto repair shops he opened successively have all been relatively stable, and he has also hired store managers who are dedicated to managing the shops. Therefore, there are not many things that Jiao Tiancheng needs to handle personally.

After returning to Songjiang City, Jiao Tiancheng focused his main energy on the used car business.

Before this, Jiao Tiancheng's second-hand business actually relied on the car repair business.

Since I repair cars, I always come into contact with a lot of car owners. Some of them want to sell their cars for various reasons, and occasionally I also meet people asking about used cars.

With this natural convenience, Jiao Tiancheng initially adopted the introducer model, introducing car buyers to those who wanted to sell cars and collecting some commissions from them. His main purpose was not to make money, but to facilitate customers.

Later, Jiao Tiancheng discovered that there were quite a lot of people buying and selling used cars. In addition, his family also ran a car repair shop, so he could easily identify the vehicles, distinguish the performance, whether there had been serious accidents, whether they could be repaired if there were any problems, how much it would cost to repair, and so on.

Under such circumstances, Jiao Tiancheng began to try to buy some second-hand vehicles, refurbish them and clean them, and those with problems were repaired and then sold directly in the repair shop.

However, what I didn’t expect was that after this attempt, I found that the second-hand sales were quite active and the business was actually quite good.

Later, Jiao Tiancheng simply opened a second-hand car shop, where he displayed various cars he had acquired and specialized in the second-hand car trading business.

After half a year, business is pretty good.

After all, cars are relatively large commodities, and brand new cars, especially sedans, are relatively expensive. For many people, especially those who need a car but are short of money, buying a used car is a more suitable option.

After half a year, the profitability of his used car business has surpassed that of the three repair shops.

Compared to the car repair business, which is relatively stable but difficult to expand on a large scale, the used car business is able to continue to expand and increase profitability.

Therefore, he spent a considerable amount of money to rent a large area in the nearby suburbs, then built a large parking shed and moved the repair shop there.

And started to acquire more second-hand cars, refurbishing and repairing them before selling them.

At the same time, we also accept consignment sales from some car owners. This consignment model does not make a profit from the price difference, but earns a certain percentage of service fees... Although the profit from a single car is small, there is no need to pay a large amount of car purchase costs in the early stage.

Under both models, Jiao Tiancheng's used car business is still pretty good!

However, what he didn't expect was that the consignment model developed faster than he expected, and many car owners came to sell their cars through the consignment model... Many people thought that the purchase price given by Jiao Tiancheng's used car dealership was too low, so they were unwilling to sell directly to the dealership, and instead adopted this consignment model.

Jiao Tiancheng accepts all offers and even welcomes consignment sales... because this way there won't be a huge cost to buy the car, and it doesn't matter whether the car can be sold or not, and there won't be any depreciation cost if it can't be sold for a long time.

As for the site cost, there is not much. He rents large tracts of wasteland in the suburbs... Parking sheds don’t cost much, and large areas of parking are actually open-air.

Jiao Tiancheng even charges a certain storage fee for the parking shed. Although the fee is very low, it can basically cover the cost of the site.

Most of the employee salaries are based on commissions, and the base salary is very low...

As a result, the used cars sold in his used car dealership expanded rapidly like a balloon. In just two months, the number of vehicles in his dealership exceeded 300... Only more than 40 were used cars owned by his dealership, and the rest were all consignment.

This model has extremely low costs, and as long as the products are sold and there is profit, it is all net profit.

And as the number of vehicles increases, the scale effect is also rapidly increasing.

Because his used car dealership is the first professional large-scale used car trading platform in Songjiang City, and it can even be said to be the first in the country, which has attracted a large number of people who want to sell and buy cars.

After all, apart from his used car dealership, other used car transactions are not open to the public... They are basically private transactions, or small-scale transactions in repair shops.

But no one does what he does, building a super large place, and then putting two or three hundred cars in the huge parking shed, and just parking them there, allowing people to choose and buy them like cabbages.

Jiao Tiancheng turned the seemingly high-end vehicle trading into a supermarket shopping model...

There was no other way. There were too many second-hand cars to be purchased and consigned... He had no choice but to pile them up in the parking shed. There were even not enough parking sheds because there were too many vehicles, so some vehicles were parked directly in the open air.

When there are more cars, it looks more imposing, and the advertising effect is also created.

There is no need for special publicity. People gradually know that there is a super large second-hand car dealership here. You can come here to buy or sell a car.

The boss speaks nicely and even compliments you when he's trying to cheat you... I feel so good.

As a result, the used car dealership run by Jiao Tiancheng became the largest and only professional large-scale used car dealership in Songjiang and even in the whole country.

This period of time was actually not very long, only about a year or so.

Relying on this second-hand car dealership, Jiao Tiancheng completed the second rapid increase in capital in his life...his net worth exceeded the level of one hundred thousand.

Jiao Tiancheng worked in the auto repair industry for many years before he completed the initial capital accumulation and opened three auto repair shops one after another, but his net worth was actually only a few tens of thousands of Chu Yuan.

However, since this used car dealership changed its model and accepted the consignment model on a large scale, its transaction volume has increased significantly, earning him tens of thousands of Chu Yuan in August alone.

In this way, the value of this car dealership would be very high, at least worth hundreds of thousands of Chu Yuan.

After Jiao Tiancheng's professional second-hand car dealership model became successful, it attracted many people to imitate it.

But not everyone can get involved in it, there is still a certain threshold for this thing.

First of all, you need to have a certain amount of capital. Renting a venue is actually a small amount of money. You also need to have enough funds to purchase various second-hand cars... Many consignment car owners find that their cars are difficult to sell, and in the end they often choose to sell their cars directly to car dealers at a low price. At this time, you must have sufficient funds and strength to maintain the acquisition.

Once you stop purchasing, word will spread that not so many car owners will come to you.

Jiao Tiancheng's solution was actually quite clever. He bought the car and then mortgaged it to the bank, and then used the money to buy a second car. Otherwise, Jiao Tiancheng would not have so much money to buy a large number of second-hand cars.

Wait until a customer buys this used car, then pay off the vehicle loan to release the mortgage, and then transfer the vehicle to the customer.

To some extent, Jiao Tiancheng not only pioneered the professional second-hand car dealership and consignment model, but also pioneered the car loan model...

  You know, there are actually no vehicle loans these days. Not to mention car loans, even home loans are rare!

The banks in the Great Chu Empire are very cautious about private loans. If you do not have very good qualifications, the bank will not provide you with a loan.

So nowadays, people actually mostly pay in full for cars and houses... Of course, for houses, you can buy the house and then mortgage it to get some cash back, but the interest rate is not low... Because this is a pure commercial mortgage loan, the interest rate is still relatively high.

Because it is difficult to find a bank loan and the demand for purchasing houses is also strong, some housing purchase cooperative funds have appeared in the State of Chu. You can voluntarily participate in this housing purchase fund and pay a certain fee every month. When you buy a house, you can use the funds in the fund to pay the house price and then pay the fees every month.

This is actually a mutual aid housing purchase fund, which is somewhat different from the traditional mortgage. It has a lower interest rate and has certain welfare characteristics!

Of course, although the overall profit is low, the scale is large, the time is long, and the profit is stable, so many financial institutions are also interested in this business.

Currently, there are at least 200 housing mutual aid funds of various sizes across the country, and they are expanding rapidly.

However, there is still no corresponding financial product for private vehicle purchases...

This is mainly because houses are more likely to retain their value, and if a home loan is provided, it is usually a discounted loan. You still need to come up with a down payment of at least 30%, and as much as 50%. This means that even if you can't repay the loan due to loan defaults, the housing fund can still cover the cost more reliably by auctioning your house, and you won't lose money.

But as for cars, they depreciate too quickly... a new car depreciates by 80% to 90% as soon as it hits the road... and after driving it for a few years it's only worth half its price.

If financial institutions rely on mortgaged vehicles to cover risks, they will lose everything.

Therefore, in the contemporary Chu State, there are no financial products for private car purchases. There are only some subsequent mortgage loans, but they are generally not very good.

But Jiao Tiancheng is different. His loan is not from a private individual but an institution... He mortgages the car he bought to the bank as an asset for a loan.

The collateral appears to be the car itself, but in reality it is additional security provided by the used car dealership.

Unless the company goes bankrupt, there is no need to worry about not being able to recover the loan.

In addition, Jiao Tiancheng's used car business is doing very well and is very profitable, so the bank is also happy to cooperate with them.

With the financial support from the bank, Jiao Tiancheng's car dealership was able to expand so rapidly.

At the same time, the modern used car business also requires a certain technical threshold, especially when purchasing a vehicle, you must discover and find various problems with the car... Otherwise, if you spend a high price to buy a used car with many problems, you will lose a lot of money.

In addition, many vehicles received have some problems, especially some vehicles that have been in accidents and need to be repaired.

Car repair is also a skill, especially low-cost repair!

This technical threshold may seem low, but it is still relatively high in modern times.

Because technical personnel who understand the inspection and repair techniques of a large number of vehicle models are very scarce. Even the engineers in those automobile manufacturers are at most familiar with their own brand of cars, but their understanding of other brands is very limited.

Especially some hidden problems and defects that cannot be seen on paper.

Technical personnel who know the problems of a large number of brands and models are often only found in private third-party repair shops.

After all, only they can have large-scale and intensive contact with a variety of different cars.

And there aren't many of them.

Nowadays, car mechanics are still a relatively scarce talent.

Jiao Tiancheng owns three auto repair shops and has trained enough auto repair talents.

  Jiao Tiancheng has completed an ecological closed loop by relying on his own auto repair shop and used car dealership!

They have channels to contact a large number of car owners and purchase vehicles without suffering any loss, or even at a bargain price. After the purchase, the vehicles are sent directly to their own repair shops for refurbishment, and accident vehicles are sent for repair.

The car is repaired and refurbished and then sent to a used car dealer for sale.

If others want to get involved in this industry, they need to meet many conditions at the same time, which is not easy in modern times.

This also made it difficult for other competitors to catch up, and they could only watch Jiao Tiancheng's used car dealership grow rapidly and even run to the North City District to open a second used car dealership.

But no matter what, under the leadership of Jiao Tiancheng, a large-scale second-hand car trading market emerged in the Great Chu Empire.

The large-scale second-hand car transactions are driven by the rapid development of the automobile industry in the Great Chu Empire in recent years.

The prerequisite for used car transactions is that you must first have a sufficient new car market.

Large-scale second-hand car transactions will only occur when there are enough cars in stock, otherwise they will just be small-scale transactions that cannot be brought to the table.

This is also why large-scale second-hand car transactions first appeared in Songjiang, rather than other places...

  Because only Songjiang City has such a huge number of cars!

By the 55th year of Chengshun, among the population of over 10 million in Songjiang City, the number of cars alone had reached 300,000.

This does not include various types of tricycles, trucks and other motor vehicles, among which there are even more tricycles... A considerable number of middle-class families have chosen to buy tricycles as a means of transportation.

In the past, they could afford to buy a private horse-drawn carriage but could not afford to use it or even park it... They could not afford a four-wheeled car either. However, they could afford to buy, use it and park a tricycle.

Therefore, in contemporary Songjiang City, or some other cities, small household tricycles designed specifically for short-distance travel have become the most popular large consumer item for urban middle-class families.

  And the number of cars in China is still increasing rapidly!

Due to the rapid increase in motor vehicles, the threat that Songjiang City would one day be flooded with horse manure, which once worried countless people, was completely ignored in just over a decade!

Because in the past ten years, the number of horse-drawn carriages in Songjiang City has rapidly declined after reaching its peak in the 1940s. Today, fifty-five years later, the number of horse-drawn carriages in Songjiang City has actually become very small.

People have widely used various types of cars, buses and family tricycles for travel, and various freight tricycles and trucks for cargo transportation.

Various types of motor vehicles completely replaced the role of horse-drawn carriages in urban transportation, so that horse-drawn carriages quickly disappeared in the long river of history!

  It is estimated that within a few years, the people of Chu will probably have to recall from historical photos and written records the scene of various private and freight horse-drawn carriages crowding the streets!

This is the tremendous change brought about by technology!

(End of this chapter)