Buying a car to explore hidden spots around one’s city or embarking on a long road trip to fulfill a dream—self-driving tourism has emerged as a dark horse among travel options for mainlanders. The government has also partnered with multiple countries to promote cross-border tourism cooperation zones, further fueling the self-driving trend. Travel agency Tuniu.com analyzed that the number of independent travelers in 2015 increased 2.4 times compared to 2014, and RVs have accordingly surged in popularity, with used cars unexpectedly becoming a new favorite.
Chinese media analysis suggests that for budget-conscious ordinary families, used cars offer better cost-performance than new ones. Some car enthusiasts have also put forward a uniquely Chinese perspective on buying used vehicles: “Better to buy an SUV (sport utility vehicle) than a sedan, and better to buy an imported car than a domestic one.”
Young people prefer imported brands
According to statistics from the China Association of Automobile Manufacturers, in the first quarter of 2016, sales of commercial-travel models rose sharply, up more than 50 percent compared to the same period last year. Notably, used RVs are more favored by families than new ones, with sales continuing to climb. During several recent short holidays, transaction volumes saw explosive growth.
Industry insiders believe that compared to sedans, RVs have higher ground clearance, a wider field of vision, and more spacious interiors ideal for family trips, giving them a competitive edge. In addition, opting for imported used cars also relates to status—brands symbolize the driver’s social standing and identity. Even though domestically produced cars have been performing well lately, they still haven’t changed young people’s preferences—the minimum acceptable are joint venture models.
Used and New Car Prices Inverted
RVs are usually more expensive than sedans, especially since import taxes in the mainland are high. For instance, a popular Porsche RV in urban areas can have a new-car price difference of 300,000 to 400,000 Taiwanese dollars compared to Taiwan. Coupled with hurdles such as license plate auctions, many consumers turn to buying used cars instead.
A bizarre inversion has occurred where some hot imported RVs are being sold at higher used-car prices than new ones. Industry experts note that those willing to accept such inverted pricing are mostly overseas-returnee youths or second-generation wealthy individuals. This trend is linked to limited import quotas for foreign cars in the mainland, long waiting times for new purchases, and the mentality that it’s better to drive a used car now than wait.