Luxury Gas-Powered Used Car Prices Plummet as Market Activity Shrinks

Recently, prices of luxury internal combustion engine (ICE) vehicles in China's used car market have dropped significantly. The 2019 Maserati Ghibli has fallen from RMB 880,000 to RMB 248,000, the 2015 Mercedes-Benz GL450 from RMB 1.355 million to RMB 178,000, and the 2013 Bentley Mulsanne Mulliner Special Edition from RMB 6.28 million to RMB 1.088 million. Data shows that in May, nationwide used car transaction volumes declined both month-over-month and year-over-year, with high-end used cars priced above RMB 300,000 accounting for only 2.8% of total transactions. This price decline stems from multiple factors: premium new energy vehicles (NEVs) have gained dominance in the RMB 300,000–800,000 segment due to their advanced smart features, zero fuel consumption, and preferential access to green license plates, diverting substantial buyer demand away from ICE models. Meanwhile, increased discounts on new luxury ICE vehicles have narrowed the price gap with older used models, encouraging consumers to opt for new cars instead. Additionally, aging large-displacement ICE vehicles face rising maintenance costs, stricter annual inspections, and tighter driving restrictions, further eroding their residual values. Compounding these pressures, used car dealers are grappling with bloated inventories and cash flow constraints, forcing them to slash prices to clear stock and accelerating vehicle depreciation.