In the era of diversified consumption, second-hand new energy vehicles have already been accepted by the market.
Wed, Jun 03 2026
In the era of diversified consumption, second-hand new energy vehicles have already been accepted by the market.
In today's era of diversified consumption, the second-hand new energy vehicle market has gained recognition. By 2024, the price drop for new energy vehicles could be very significant. In April this year, Xu Ming, who lives in Beijing, finally decided to sell his Tesla Model Y that he had purchased three years ago. At that time, the price of this Standard Range version was close to 260,000 yuan. However, when he consulted the second-hand car market, he was surprised to find that the value of his own car was less than half price, much lower than his expectations. Originally planning to exchange for a brand-new SUV, Xu Ming turned to focus on the second-hand car trading platform.
Meanwhile, two young friends of Xu Ming were also choosing the first car of their lives. They all agreed that a new energy vehicle was a good choice, but there was a difference in opinion between buying a brand-new car and a second-hand one. Some people believe that buying a new car allows experiencing more advanced technology and enjoying the so-called 'new feel'. However, the rapid iteration of technology also means that the value preservation rate of new cars will decrease very rapidly, soon facing the dilemma of slashing value. Often, we can find answers in market trends.
According to information from the China Automobile Dealers Association, in March 2024, a total of 91,500 second-hand new energy vehicles were traded nationwide, a month-on-month increase of 41.4%, and a year-on-year increase of 63.5% over the same period of the last year. Data reports from the Guazi second-hand car platform indicate that more and more young people are becoming the main force in purchasing second-hand new energy vehicles. Against the backdrop of a diversified era of consumption, cost-effectiveness, return on investment, the experience of changing new vehicles, and the pursuit by young groups of trends, are proving the acceptance of the second-hand new energy vehicle market.
The youth and the new middle class are the main groups of new energy vehicle users. Compared with traditional fuel vehicles, consumers of new energy vehicles are younger, especially those under 35 years of age. This group has a strong interest in high-tech and new experiences, and are willing to pay extra for new technologies. Chen Yuan, a post-95s who works in Beijing's Guomao said: "My first car may not be a Xiaomi su7, but it'll definitely be a new energy vehicle." He loves skateboarding, is adept at operating drones, and is considering buying a new energy vehicle for commuting. New energy vehicles have a strong appeal to the younger group in terms of economy, design sense, big screens, driving acceleration, and intelligence.
The data report also shows that young people and white-collar workers prefer to buy new energy vehicles, and brands such as Tesla, Xiaomi Autos, and Wei XiaoLi have proven this multiple times. Chen Yuan mentioned: "Our generation, many people have a special affection for Tesla. When it entered the Chinese market, it truly subverted our traditional perception of cars."
As time passes, the strong development of domestic brands offers more and more choices to young people. He believes that new energy vehicles also have social attributes to a certain extent, "You may verbally exclaim about traditional luxury oil cars, but many new energy car designs make you want to showcase them on social platforms." In April this year, the penetration rate of new energy vehicles in the domestic market exceeded 50% for the first time, surpassing traditional fuel vehicles and forming a market pattern where oil and electricity coexist. However, contrary to what many people imagine, young groups not only focus on high-quality life but also care about cost-effectiveness and return on investment.
For the new generation of young people today, luxury cars are no longer their first choice when buying a vehicle. Acquiring a car for them is not just about satisfying the need for transportation; it is a careful investment, especially apparent for those who have received higher education and are part of the new era. With the rapid and evolving development of new energy vehicle technology, many prefer to change cars every three to four years. However, when reselling almost brand-new new energy vehicles, owners often face a significant reality of depreciation, making it especially important to maintain the car's value.
According to big data analysis from the Guazi second-hand car platform, as of April 2024, the retention rates of vehicles with different energy sources have shown significant differences over the years. Especially, the retention rate of second-hand new energy vehicles is generally lower, with an additional 10% depreciation in value compared to their fuel vehicle counterparts in the first year. Specific data shows that during January to April, the average retention rates for one, two, and three-year-old second-hand new energy vehicles are 60%, 51%, and 43%, respectively, meaning that the car's value halves in just two years.
The low retention rate of second-hand new energy vehicles is mainly due to several key factors: firstly, the premium price of new technologies leads to a lack of price support for second-hand new energy vehicles; secondly, the degradation of battery performance causes anxiety, which is amplified in the market pricing; moreover, government subsidies for new energy vehicles have also reduced their retention rate to some extent. Furthermore, strategies to reduce the prices of new cars also have a significant impact on the second-hand car market. With the advent of new models each year and technological advancements, along with the decrease in battery costs, manufacturers usually adjust prices to enhance market competitiveness. Unfortunately, the price reductions of new cars have impacted the second-hand car market, making even well-performing second-hand cars less competitive in the market if priced higher than new models with reduced prices.
However, for second-hand new energy vehicles that have withstood the test of time and have stable value retention, they have actually become a better choice that aligns with the preferences of young consumers. To some extent, when the price of second-hand new energy vehicles falls below a certain threshold, their value tends to stabilize over the long term. This is a concern for new car owners but could be an opportunity for second-hand car buyers—the low retention rate of new energy vehicles provides them with a unique buying opportunity. Taking the Li Xiang ONE as an example, according to data from the Guazi second-hand car platform, its price will fall to 55% of the new car's price by the third year. By the fourth year, the rate of depreciation significantly decreases, and it can still be sold for 49% of the new car's price; by the fifth year, it can even maintain 44%. Models like the Tesla Model Y, Xpeng P7, and Lixiang T03 all show similar pricing trends.
From the perspective of investment return, second-hand new energy vehicles are more friendly and economical for young people. Referencing Guazi second-hand car data, young people only need to spend the price of a second-hand car to enjoy the pleasure of changing to different styles of second-hand new energy vehicles every year. In cases provided by Guazi second-hand car, such as NIO models, a customer can "change every year" with an investment of only 220,000 yuan, enjoying the experience of the entire NIO series. This undoubtedly aligns more with the consumption concepts and life attitudes of the younger generation who seek novelty and change.
“I just bought a second-hand electric vehicle to start my own business,” says Xiao Chen, a freelancer from Shanghai, who didn't rush to find a new job after leaving her position but instead chose to start a business using an electric car. She took on some door-to-door services in WeChat groups, such as pet feeding, watering plants, etc. By her calculations, purchasing a second-hand new energy vehicle costs less than 100,000 yuan, and even if she drives 200 kilometers a day, the charging cost is only about a dozen yuan, whereas the fuel cost for the same distance in a traditional gasoline vehicle could be several times higher.
The price advantage of second-hand new energy vehicles is significant, and it does not come at the expense of vehicle performance and reliability. Compared to traditional gasoline vehicles, the three electric systems (battery, motor, and electronic control) of new energy vehicles have a much lower physical wear and tear, thus they have a clear advantage in durability. With the continuous improvements in battery technology and cost reduction, the issues of range anxiety and battery replacement costs are no longer the main barriers to purchasing a vehicle.
Even for second-hand vehicles of the same age, new energy vehicles can provide a driving experience that is closer to that of a new car. The residual value of new energy vehicles is generally not as good as that of gasoline vehicles, which means consumers can enjoy a higher value for a lower price. Therefore, purchasing second-hand new energy vehicles has gradually become a consumption trend among young people, just like buying smartphones and other 3C products, allowing young people with relatively limited funds to enjoy the experience and added value of owning a car.
However, there are still some doubts about second-hand new energy vehicles. Gasoline vehicles, after decades of development, have mature and sophisticated testing and evaluation technology. Even non-professionals can make a basic judgement about the condition of the vehicle by observing its driving performance and listening to the engine sound. In contrast, new energy vehicles lack similar evaluation standards. Recently, some second-hand new energy vehicle dealers expressed that buying and selling have become increasingly difficult. The problems are mainly concentrated on the lack of unified national or industry standards in pricing, quality inspection, and after-sales service.
Quality inspection and after-sales service are particularly critical, as each second-hand vehicle's condition varies, and non-standardized inspections make buying and selling more difficult. For example, current retail car dealers employ a "quick in and out" strategy to shorten the sales cycle as much as possible, but this makes it harder for consumers to understand the vehicle's condition in depth, creating a dilemma. How can we break this vicious cycle? When dealing with these issues, large platforms such as Guazi Second-Hand Car can use their massive vehicle information and resources to bring a natural competitive advantage in terms of price.
The British historian Cyril Northcote Parkinson proposed "Parkinson's Law of Time," which states that the complexity and importance of a task are directly proportional to the time it takes to complete it. Sometimes, when we struggle to find answers in the tasks we design for ourselves, we need to change our perspectives. In the second-hand new energy vehicle market, this may mean offsetting price with scale, trading space and efficiency for time, and reducing information and recognition gaps.
Large platforms have the advantage of scale, such as the Guazi Second-Hand Car platform, which sells over 10,000 second-hand new energy vehicles, including mainstream models like the Tesla Model 3. Hundreds of dealers on the platform can concentrate on public sales and quotes, and the interplay between dealers and market mechanisms will ensure reasonable pricing for second-hand new energy vehicles.
Guazi Used Car, a large second-hand car platform, leverages its numerous offline channels and mature logistics system to effectively reduce the time consumed by other processes and return more valuable time to consumers. Guazi's "7-day Test Drive" service is a concrete manifestation of this. According to Guazi's research data from last year, professional assessors using static detection can uncover about 83% of a vehicle's condition issues; while the remaining approximate 17% of condition problems are revealed by customers during the dynamic test drive within the first 7 days after picking up the vehicle. Thus, the 7-day test drive service provided by Guazi enables customers to gain a more comprehensive understanding of the true condition of the vehicle.
In the field of used new energy vehicles, users are particularly concerned about battery life, and personal test driving is undoubtedly the best way to assess the battery's working state and overall performance. Even the most advanced battery testing technology and endurance estimation methods cannot compare with the actual experience of driving on a full charge. Additionally, with the accumulation of big data in the industry, platforms like Guazi have gradually acquired massive and complete vehicle information. Based on a large number of transaction cases and after-sales service data, platforms can digitally and informatively analyze various data indicators, identify technical indicators of second-hand car quality, and determine reasonable threshold ranges. These analytical results help to compensate for the lack of professional knowledge among all parties and provide a solid foundation for the establishment and improvement of industry standards.
Although fluctuations and adjustments in the prices of new and used cars will continue for some time, and it is expected to take at least 3 to 5 years to stabilize at a reasonable level, it is foreseeable that the market for used new energy vehicles will continue to maintain a stable growth trend in the next few years. As for how to improve the rules and establish standardized processes, further exploration is needed.
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