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Are you planning to purchase a used car from China? China's ever-growing used car market has become a goldmine for buyers. According to the China Automobile Dealers Association, more than 18.41 million used vehicles were purchased in , with a total transaction value reaching $165.81 billion.
As the Chinese used car market expands, due diligence is paramount to ensure the purchase process is easy and you get a quality unit. In this guide, we'll educate you on the key things to note before purchasing a used car from China. Read on!
The Chinese used car market has been experiencing consistent growth since . According to Statista, the market value was around 200 million Yuan, but by , it had risen to around 1.1 billion yuan.
Usually, car owners sell their old cars during holidays after purchasing new ones for celebrations. Considering China's automotive industry is growing with several automakers emerging from the country, the costs are reducing yearly. Reduced costs make it easier for owners to dispose of their old cars and acquire new ones.
China has numerous holidays all year, like the New Year, Qingming Festival, mid-autumn festival, and Golden Week, among others, making it easy for dealers to stock numerous used cars any time of the year.
In , vehicles aged between 3 and 6 years collected a significant share, while those aged 7 to 10 years were lower. Check the table below:
In , auto sales grew by 12% on overseas demand when China sent 160,000 more used cars to overseas countries. These numbers show that China's automotive market is growing fast, creating a need to dispel older vehicles from the domestic market in favor of new ones. However, it's important to note that mileage and condition are paramount when buying a used car from China.
When buying your first used car from China, determine the features you need. All you have to do is think about the number of people or the types of goods you regularly transport. For instance, if you're purchasing a family car, you may need a vehicle with three-row seating to ensure comfort for all members.
Besides choosing the features, you must also determine your budget, keeping in mind that after the dealer ships your car to the nearest port, you'll pay the customs duty.
Before purchasing a used car from China, ensure you have the right dealer. A reputable car dealer will be willing to answer all your questions, and their job execution should be precise to you. Here are the steps to ensure you have the right dealer:
Online search is the ideal way to find dealers in China, especially from overseas. Most dealers have professional websites and social media pages; therefore, checking their background is easier. In this case, gather information about their business, including registration details, online presence, and contacts.
After researching the background, verify that the seller possesses the necessary credentials and licenses for international auto trade. Ideally, request their licensing information and cross-check with the official databases to ensure their legitimacy.
Evaluate the seller's reputation within the industry to ensure their commitment to ethical practices and customer satisfaction. The process is simple: seek out reviews and feedback from previous customers to gauge their reliability by visiting the social media pages, the website, and Google reviews.
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Gather detailed information about the vehicle model you intend to purchase. This process is critical, and you can carry it in two ways:
Visit the dealer's location in person. Inspecting the vehicle in person will enable you to establish a direct relationship and better understand the dealer's operations.
Alternatively, consider a third-party inspection company to help you complete the process. Professionals from a reputable third-party inspection company can perform an unbiased and comprehensive inspection to ensure you have an accurate assessment of the vehicle's condition.
Here are the key activities to perform:
Request the car's history, maintenance records, and any relevant certifications, including the title and registration papers. Ensure that the information aligns with the seller's claims to avoid potential misrepresentation.
Look at the car's sides to determine the quality of the paint. Also, check the tires for wear or misalignment and inspect the exhaust system and the undercarriage for corrosion and other damages.
The engine is the heart of the car, so you must ensure it's in good condition. After inspecting the engine block, check the hoses and belts for damage. If you're purchasing an electric car, ensure the battery and the motors are in good condition; an expert should conduct this inspection.
Check the car seats and upholstery for tears and stains. Then, switch on the accessories, such as the radio and AC, to determine if they are functional.
Drive with one of the dealership's professionals so you can ask them questions about the vehicle. Note the engine performance and other systems' responsiveness during the test drive.
Once you have tested the vehicle or received the assessment report from your truncated inspection company, negotiate the price with the dealer, depending on the quality. Here are additional activities to carry out before importing your used car from China:
Verify the customs duties and taxes applicable to car importation in your country. Understanding these financial obligations prevents potential delays and saves you from unplanned expenses.
Most car dealers include the shipping costs to ensure you have an easy time bringing your dream car to your location. However, if your used car from China is being shipped internationally, confirm the shipping method, estimated delivery time, and other details such as insurance coverage.
Nowadays, digital payment methods help trace the payment details in case issues arise. Regardless of finding a reputable dealer, use secure and traceable payment methods. Escrow services are ideal for huge investments to ensure you dont risk your money.
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