As we have introduced before, China is the second cheapest country in the world to buy a Tesla Model 3. However, this price is only available through Tesla’s official channels. Because the current price of a second-hand Tesla in China actually is higher than a brand new Tesla. Even with the recall of the certain Tesla models which release earlier.
Such a situation is quite intriguing. China’s used car market has developed rapidly due to chip shortage, supply lines challenges, and Covid-related restrictions. The number of sold used cars in 2021 rose 22.6% in comparison with 2020 reaching 17.5 million second-hand vehicles. In addition, the Shanghai second-hand car trading centre’s employee also stated that there are very few new energy used cars in China’s used car market, and most of them are fuel vehicles. As a result, prices of used vehicles have increased as well. Although consumers have a bad impression of second-hand vehicles, some high-end used cars like Tesla are still popular. Thus some Tesla used cars cost more than new ones. Some dealers offer used Model Y even 2,700 USD more expensive than a new one with the same trim level directly from Tesla in China.
According to a second-hand car dealer in Shanghai, “the two Tesla Model Ys in the store are purchased right from the factory. The price of the Tesla Model Y will be about 276,000 RMB in September 2021. Because it takes about half a year to wait for a new car, so now the price of a used car has risen to over 300,000 RMB. In fact, the price of those used Tesla is higher than a new one.” Cui Dongshu, secretary-general of the China Passenger Cars Association, said that the popularity of the second-hand car market is mainly due to the increased willingness to trade in the second-hand car market. The increased willingness is because the shortage of new cars and the longer delivery time. “This year and for a period of time in the future, due to factors such as the increase in car ownership and the shortage of new cars, the price of new cars may remain high, which also means that the second-hand car market may continue to remain hot.”
As for Tesla, Cui Dongshu said, “Tesla’s brand status is relatively special. It is a high-end car. Lack of new cars has led to an increase in the price of used cars. Consumers may have to wait in line for three months to buy a new car, but it is more convenient to buy a second-hand car. To a certain extent, it has also promoted the development of the used car market, Which make the used Tesla’s prices are higher than a new one.”
