New cars are dropping in price, but used cars are getting hotter? Should you buy a new car or a used one?

Source: China Business Herald

As competition in the automotive industry intensifies, the landscape of both new and used car markets has undergone earth-shaking changes.

According to the latest data released by the China Automobile Dealers Association, in June, the trading volume of used cars surpassed that of new car retail sales for the first time, marking a turning point in the development of the used car market. Meanwhile, BBA (BMW, Mercedes-Benz, Audi) companies are facing downward pressure on their operations.

01 Used Car Sales Surpass New Cars

Data shows that in June, the national trading volume of used cars reached 1.6184 million units, a month-on-month increase of 1.05%; during the same period, the domestic retail volume of passenger cars was 1.6020 million units, with new car sales continuing to be in negative growth territory, underperforming market expectations.

Looking at the overall trend in the first half of the year, the trading volume of the domestic used car market has risen steadily, showing robust growth momentum. Data indicates that in the first half of 2026, cumulative used car transactions reached 9.7132 million units, a year-on-year increase of 1.5%, an increase of 143,100 units compared to the same period in 2025, with total transaction value approaching 640 billion yuan.

In previous years, increases in used car volumes were mainly supported by sedans and SUVs. However, in June, trading volumes for both sedans and SUVs declined year-on-year, and the commercial vehicle market performed flatly. The industry's ability to achieve overall positive growth relied entirely on the incremental pull from MPVs and crossover passenger vehicles. Detailed data shows that in June, MPV transactions reached 115,300 units, a month-on-month increase of 1.17% and a year-on-year increase of 5.09%, becoming the core driver of market growth.

Lu Guangzhi, Deputy Director of the Used Car Information Department of the China Automobile Dealers Association, stated that the logic of used car consumption is undergoing profound changes. Consumers are increasingly valuing the practicality and multifunctional attributes of vehicles, directly driving up the trading volume of related models, including seven-seater MPVs.

Beyond scale expansion, the value of the used car industry continues to rise, and the sector is experiencing comprehensive, deep structural changes. The China Automobile Dealers Association predicts that with the implementation of expanded policies for motor vehicle scrappage and renewal, the total annual volume of vehicle scrappage and renewal is expected to hit a historical high.

02 Strong Rise of New Energy Used Cars

Notably, new energy used cars are gaining increasing favor in the market. Zhao Zhifeng, Head of Used Car Business at Dongchedi, stated that in the first half of the year, the online browsing and transaction growth rates for new energy used cars on the Dongchedi platform saw significant surges. Moreover, consumer demands when purchasing new energy used cars have undergone several obvious changes.

Firstly, early users buying second-hand new energy vehicles focused more on entry-level prices. Now, more and more consumers focus on core indicators such as battery health, three-electric system inspection reports, and the remaining term of original factory warranties. Smart cockpits and assisted driving have become essential screening criteria for many consumers. At the same time, car buying is no longer limited to local areas; using online platforms to "hunt" for beloved cars across regions nationwide has become a new trend. Additionally, after-sales guarantees such as 7-day returns, three-electric system warranties, and lifetime buyback for major accidents have become decision-making factors for consumers placing orders.

The stereotype that "new energy vehicles do not hold their value" is changing. According to the "2026 First Half China Auto Retained Value Research Report" jointly released by the China Automobile Dealers Association and auto data service platform Jingzhen Gu, the 3-year average retained value of fuel vehicles in the first half of 2026 was 46.07%, while that of new energy vehicles was 44.8%. Compared to historical data, the gap between the two is narrowing.

In the market for second-hand new energy vehicles, the circulation popularity of independent brands is rising. Zhao Zhifeng analyzed that in recent years, the rapid sales growth of new energy vehicles from independent brands has expanded the base for used car circulation. Independent brands precisely cover full-price-range needs through product stratification, providing consumers with a broad selection space. From 30,000 to 80,000 yuan new energy commuter cars to luxury new energy vehicles costing 500,000 or even over 1 million yuan, independent brands maintain a significant lead.

03 BBA Collective Price Cuts

While the second-hand car market is booming, luxury new cars like BBA are seeing collective price cuts.

This year, the price defenses of Mercedes-Benz, BMW, and Audi have loosened, with competition shifting from dealer secret discounts to corporate price adjustments and public benefit pricing. Those participating in price cuts are no longer just electric vehicles, entry-level cars, or niche models, but gradually covering main products like the A6L, Q5L, C-Class, and GLC, which once supported the sales and price systems of luxury brands.

In terms of pricing, Audi's concessions are the most aggressive, with comprehensive discounts on the Q6 reaching up to 130,000 yuan. Models that previously had on-the-road prices around 500,000 yuan can now be bought for a bare car price of 330,000 yuan; the A7L standard version is 380,000 yuan, and the Black Warrior version is 410,000 yuan, whereas previously on-the-road prices approached 600,000 yuan. Mercedes-Benz GLB offers discounts of around 100,000 yuan, and the C-Class offers 90,000 yuan in discounts. One BMW dealership is clearing out its last batch of iX1 inventory, with a full payment of slightly over 180,000 yuan, and financing options bringing it down to over 170,000 yuan.

Multiple frontline sales personnel from SAIC Audi stated that terminal discount margins for some models have already reached 150,000 to 160,000 yuan, "now is the best time to buy, and there's still room for negotiation on price."

Would you buy a new car or a used car?

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