China's 2026 used car sales nearly match new car purchases

TIANJIN - Liu Ke, a resident of North China's Tianjin municipality, recently purchased a used BYD new energy vehicle (NEV) through an online automotive platform's certified pre-owned car store in this city.

"My household already has a gasoline car. This second-hand NEV is mainly for short-distance commuting, as it's affordable to run and reasonably priced. The platform also provides a fairly detailed inspection report," Liu said.

Across China, a growing number of consumers are turning to used cars. At the 2026 China Used Car Conference, a statistic drew wide attention: for the first time, the ratio of new car sales to used car transactions approached parity — a clear sign that the used car market is gaining traction.

Data shows that in the first five months of 2026, new car retail sales had reached 8.148 million units, while used car transactions hit 8.095 million units in the same period.

Within this growth, the NEV segment has stood out. Zhao Zhifeng, head of used car operations at Dongchedi, an auto information and trading platform, said that in the first half of this year, both online browsing and transaction growth for used NEVs had significantly outpaced the domestic average. Meanwhile, consumer priorities when selecting used NEVs have shifted in several notable ways.

Buyers are moving beyond simply hunting for a cheap commuter car and are now paying closer attention to quality, battery health and value retention. "In the past, used NEV buyers focused mostly on price. Today, more consumers care about battery condition, inspection reports for the battery, motor and electronic control system, and how much of the original factory warranty remains," Zhao said.

Smart cockpit features and assisted driving capabilities have also become key filters for a growing number of buyers. Purchases are no longer confined to local markets, as a new trend has emerged, with consumers searching nationwide for their ideal vehicles via platforms like Dongchedi and Guazi.

Another boost to the used NEV market comes from changing perceptions about poor value retention. According to the 2026 First Half China Automobile Value Retention Rate Research Report, jointly released by the China Automobile Dealers Association (CADA) and data platform Jingzhengu, the average three-year retention rate for gasoline cars in the first half of 2026 stood at 46.07 percent, compared to 44.8 percent for NEVs, signaling a narrowing gap.

The used NEV market, notably, is shifting from a niche player to the mainstream. Its national penetration rate rose from 3.6 percent at the end of 2022 to 11.6 percent in April 2026.

Domestic brands are gaining ground in the used NEV space. Zhao attributed this to the rapid growth in new NEV sales of domestic brands in recent years, which has expanded the pool of used vehicles. Through product tiering, domestic brands have covered demand across all price points, offering consumers a broad range of options.

An interesting finding from the Young User Used Car Consumption Insight Report, jointly released by China Automotive Information Technology (Tianjin) Co Ltd and Dongchedi, shows that used cars are increasingly becoming the first vehicle of choice for younger generations.

The top motivation is cost reduction and easing financial strain, which is cited by 61 percent of respondents. Another 47 percent said they want to avoid the depreciation risk associated with new cars. Both figures suggest that young consumers are generally prudent and pragmatic when it comes to buying used cars.

Online platforms have greatly improved the efficiency and reach of used car circulation. According to a representative from Guazi, with a nationwide integrated sourcing and delivery network, physical stores are no longer isolated outlets serving only local customers. Buyers can compare prices across the country and take the lead in negotiations.

Guazi's first nationwide physical store, located in Suzhou, East China's Jiangsu province, not only meets consumers' demand for centralized viewing and on-site price comparison, but also enables swift dispatch of inventory vehicles from storage hubs within a 300-to-500-kilometer radius, thus delivering on the promise of "nationwide browsing online, fast delivery offline."

Luo Lei, vice-president of the CADA, noted that the long-term fundamentals of China's used car industry remain solid. The vast automotive ownership base acts as a reservoir. With trade-in incentive policies continuing to take effect, and thanks to the two blue-ocean opportunities of NEVs and exports, the used car industry is poised for strong incremental growth.