A customer surnamed Qin said a salesperson at Guazi offered to refund their RMB 4,500 (around $670) commission after they signed a contract to buy a second-hand Honda, according to a statement by Uxin on popular messaging platform WeChat.
Such activities could allow companies to attract more customers by removing their commissions, while potentially not recording the refunds in order to alter their financial results.
Uxin claims Qin showed it screenshots of the WeChat money transfer. The deal was allegedly made in the southern Chinese province of Guangxi in January. Uxin said it found “huge” numbers of similar cases in 30 cities around China and accused Guazi of cooking its books.
In a statement, Guazi denied the claims, saying the move is part of a sales promotion to “accelerate the circulation of vehicles and encourage its salespeople.” The company added that its promotional strategy was created based on reasonable financial models. Guazi said Uxin should be more worried about its businesses, given that its market value has shrunk considerably.
Nasdaq-listed Uxin’s share price has fallen nearly 65% since late December.
“We hope Uxin will learn lessons from slandering other players,” Guazi said in a statement, adding that it has confidence in the new-retail market for second-hand cars.
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