Luxury Used Gas Cars Plummet—Many Six-Figure Models Now in the $10K Range

At Qingdao’s Luhai Auto Trading Market, a Bentley Flying Spur over eight years old is listed at RMB 268,000, entry-level used Porsche Macans are priced as low as RMB 150,000, and a second-hand Volkswagen Touareg—originally priced close to RMB 900,000 when new—is now selling for just RMB 68,000. Mid- to large-size luxury SUVs from brands like Mercedes-Benz and Land Rover have also seen significant price drops, with some models falling from the million-yuan range into the price bracket typical of ordinary family sedans. According to used-car dealers, depreciation for premium used internal combustion engine (ICE) vehicles historically stayed below 30% annually, but in May 2024 alone, depreciation reached 30%. Compared to the same period in 2023, the prices of eight-year-old Porsche Macans and Bentley Flying Spurs have plummeted from approximately RMB 320,000 and RMB 550,000 respectively to current levels—nearly halved. Data from Autohome shows that a 2012 Bentley Flying Spur 6.0T Limited Edition is now quoted at RMB 358,000 (original price: RMB 5.62 million); a 2004 Mercedes-Benz G 500 is priced at RMB 338,000 (original taxed price: RMB 1.5034 million); and a 2013 Audi A8L 50 TFSI quattro Prestige model is listed at RMB 88,800 (original taxed price: RMB 1.4817 million). In May 2024, for the first time ever, all top ten best-selling passenger vehicles in China’s retail market were new energy vehicles (NEVs), completely pushing ICE vehicles off the list. The China Automobile Dealers Association noted that continuous price cuts on new ICE vehicles have directly dragged down the used-car market, especially impacting mid- to high-end models. According to data from the Passenger Car Association (CPCA), ICE vehicles accounted for only 37.1% of the passenger car market in May, contributing 82% of the total year-on-year decline in sales volume. Meanwhile, NEV retail penetration hit a record high of 62.9%. Sales of joint-venture NEV models surged by 51% year-over-year, while ICE vehicle sales dropped by 41%. Amid these market shifts, some 4S dealerships have scaled back or removed ICE vehicle displays, and used-car dealers are allocating less capital toward acquiring ICE vehicles while increasing their share of NEV acquisitions. Despite the current low prices of premium used ICE vehicles, multiple risks remain: many cities enforce China VI-b emission standards for vehicle relocation, barring China IV and V vehicles from entering first-tier cities; China VII standards are already being piloted in certain regions, potentially expanding restrictions on older, high-displacement models; German luxury cars typically have parts-to-whole ratios exceeding 600%, with annual basic maintenance costs surpassing RMB 8,000 and expensive repairs for critical components; older models commonly suffer from oil leaks, excessive oil consumption, and aging electronic systems, and aftermarket parts often lack compatibility, forcing reliance on OEM components; additionally, high-mileage luxury vehicles frequently carry transaction risks such as odometer fraud, undisclosed accident repairs, unresolved liens, and severe aging of chassis and rubber components due to long-term storage. Industry experts advise that only specific groups should consider purchasing such vehicles: local commuters without inter-city relocation needs who plan short-term usage and accept steep depreciation; classic car collectors with professional repair capabilities and proper storage conditions; and businesses requiring vehicles for wedding services or corporate hospitality. For average consumers using vehicles for long-term family transportation, daily commuting in first-tier cities, or planning ownership beyond three years, buying used premium ICE vehicles is not recommended, as their long-term total cost of ownership far exceeds any initial purchase savings.