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Q: Why is buying a used car not common in china?

Especially when the market for cars is so big

7 years 24 weeks ago in  Transport & Travel - China

 
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Owning a car is a relatively new thing for many people here.  Given that, there simply just isn't the used car market yet.  I expect that in another 5 years or so it will be a booming industry.

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7 years 24 weeks ago
 
Posts: 1559

Shifu

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I'll give you my personal car buying experience in China.  At first, I was completely set on trying to find a used car.  The chinese person (translator, friend) helping to do this could not understand at all.  And after a few weeks, I completely understood.  The only used cars I could find were JUNK!!!  High miles, terrible smells, dirty inside and out, random damage inside and out, questionable maintenance history, etc.  And the prices they were asking?  About the same as a new, albeit lesser model car.

So, I just went and bought a new car instead.  I got me a little BYD F0 for about 5000 usd, closer to 6000 usd after taxes and insurance.  For pooping around the town and the occasional jaunt down the expressway, it works great!

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7 years 24 weeks ago
 
Posts: 1633

Shifu

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Let me clarify my answer up front. I am not in any way taking a shot at any of the guys on the site who have married divorced, Chinese women. Just making a generalization that may or may not be true. I do however see some camparative logic in what I am about to post. The plight and stereotype placed on the divorced female in China is a shame.

New Car = Virgin = Face

2nd car = Divorced woman = Out to pasture (No Face to be gained here)

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7 years 23 weeks ago
 
Posts: 2256

Emperor

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I think it will be more common in the future, if cars are cheap enough for more people to buy them. Then I think that people will feel that having an old car gives more face than having no car.

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7 years 23 weeks ago
 
Posts: 2735

Governor

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When you think of buying a used car you think of several things. The first thing that comes to mind is that it is used and also the safety. Who knows why the previous owner sold the car in the first place. 

You know how Chinese car dealers or any type dealers are. They usually keep things that will make the customer leave out of the conversation. It's safer to buy a new car rather than an old used car in China. 

When most people buy a car they will think of safety first and then probably appearance. The used cars are the worst one's to buy if your thinking of those two things. Only someone who couldn't afford a new car will buy a used car and I don't really think they had any choice when they did. 

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7 years 23 weeks ago
 
Posts: 134

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Isnt that a coincidence... Mattaya whilst not only giving a good answer, also gave the exact answer that all my Chinese and Taiwanese colleagues gave when I wanted to buy a car....

I have recently bought one and gone through the exact same experience and wonderment. In the UK I have never bought a new car, its just plain silly, they will loose 1/3 of the value (if not more) as soon as you drive down the road.

But here everyone buys new cars, now you would think that means there is alot of old ones, especially with such rich folks that do need the latest cars for face. But unfortunately there is isnt a developed second-hand market, maybe in 5-10 years but not now.
When asked where all the used cars go to, people told me that they get sent out to the countryside where poeple arent so concerned with completely screwed cars.

The main reasons for people discouraging me to buy a used car were;

1. Safety; used cars can hide all sorts of problems, from wreck damage to cut n shut. People also beleive that used car dealers are seriously dishonest.
2. Scams; used cars can not be registered properly, have all maner of fake documentation and even be striped of official dealer parts and replaced with fakes. As a foreigner stay well clear of these as you cant understand the paperwork. The only was to be sure that the car you buy is genuine and genuinely yours is to buy from a reputable dealer.
3. Face; ok its true, Taiwanese and rich Chinese wouldnt be seen dead in chinese branded cars, even Toyotas and Honda were scoffed at when I said liked certain models. Brands are king here... Mercedes, Porsche, BMW, Audi. Followed by the americans, Chevolet, Buick, ford etc.
4. Resale value; it was suggested that I co-workers and acquatances would be more willing to releive me of my purchase should I have to leave China if I were to own a foreign brand, specifically german.

So all in all it was pretty tough time, shopping around took a long time by always having to take a friend to translate and getting taxis to all the dealerships.
So in the end I said Sod it! and just went down and bought an imported german made BMW. Drives like a dream!

Happy Motoring!

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7 years 23 weeks ago
 
Posts: 961

Shifu

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I understand what everyone is saying but also see so many new cars being driven around the place by the well off or those trying to appear well off. They get them cleaned and serviced regularly because it is relatively cheap for them to do so. What happens to all those cars when they tire of them and move on to the next new model for face reasons. I would think there must be lots of bargain basement used cars available due to the above reasons.

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7 years 23 weeks ago
 
Posts: 961

Shifu

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Do new car dealers offer trade in service? What do they do with the cars that are traded in?

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7 years 23 weeks ago
 
Posts: 2549

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Because people here have no clue about vehicle maintenence.
They beat the shit out of the cars here.
People would rather buy a Chinese car for 6000k new rather than an older import.....shiney and new and the gaining of face.

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7 years 23 weeks ago
 
Posts: 168

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I assumed it was like the lack of thrift stores here...its just bad luck to have 2nd hand items or something

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7 years 23 weeks ago
 
Posts: 259

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well, i live in shanghai, a bit more outside, and there is a huge 'used car' store right beside my building... probably  it is not that common, BUT it is available!!

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7 years 23 weeks ago
 
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https://www.news24.com/SouthAfrica/Local/South-Coast-Fever/used-car-sales-are-booming-20160615-2

 

Cars have become high tech expensive commodities. Half of Americans make less than 30k a year and over half the cars are over 30k, gee, I wonder what's wrong with buyers. Why would anybody buy a car in South Africa when they are stolen in broad daylight in car jackings everyday.

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46 weeks 6 days ago
 
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