My visit to a used car lot in Shanghai
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hasnt changed then - some years ago I met a guy who had proudly paid about 30k for a santana with 300k miles on it. At the time a new one cost about 100k. By my (UK) reckoning the car was costing 30% of new and was effectively life expired, in uk would be worth about 3000rmb +/- a bit depending on how many months before next annual inspection.
From his point of view, cars in china often last about 600k km, so he thinks he's getting an only half used up car for 30% of the price - bargain.
Here is the problem: because volume of car sales has grown so much over the years, there are not as many 07 cars in existence as 08, less from 06 etc. so the further back you go in years, the less supply there is, this will tend to boost second hand prices.
Another thing, because spares are cheap and repairs even cheaper (because low labour cost), the maintenance cost of an older car is not quite so daunting as it can be in the west where those sub 10k rmb cars can easily develop a fault that costs as much as they are worth.
Unless it is a beijing jeep 2020 (which were good value but may also be hard to find now), it's maybe better to buy a new car in china.
Of course don't forget that just because someone asks 30k for something doesn't mean you should feel embarrassed to offer them 10k
Other thing I may have missed: Is the Shanghai license plate included and is it transferable? Those license plates are worth, what, about 40k?
From his point of view, cars in china often last about 600k km, so he thinks he's getting an only half used up car for 30% of the price - bargain.
Here is the problem: because volume of car sales has grown so much over the years, there are not as many 07 cars in existence as 08, less from 06 etc. so the further back you go in years, the less supply there is, this will tend to boost second hand prices.
Another thing, because spares are cheap and repairs even cheaper (because low labour cost), the maintenance cost of an older car is not quite so daunting as it can be in the west where those sub 10k rmb cars can easily develop a fault that costs as much as they are worth.
Unless it is a beijing jeep 2020 (which were good value but may also be hard to find now), it's maybe better to buy a new car in china.
Of course don't forget that just because someone asks 30k for something doesn't mean you should feel embarrassed to offer them 10k
Other thing I may have missed: Is the Shanghai license plate included and is it transferable? Those license plates are worth, what, about 40k?
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Yup, I've seen the same type of thing here in Nanning - used cars that are WAY WAY overpriced. However...........if you get the chance to actually talk to the owner, prices all of a sudden become REAL flexible. Why? Well......most people that are selling used cars assume that the buying public is not too educated on car prices, details, specs, etc. - and in many ways that's true. Sure, there are lots of consumers here that are VERY focused and do their research on car websites.....these are people (in general) that are shopping for a new car and want to know their options. Compare that to someone who lives in a small town or village, can only afford 20-30,000rmb at the most and has a "limited" education. They can easily be misled by a deceitful owner trying to sell their car, and end up with a car in terrible shape, ready to fall apart. Think I am exaggerating? A friend of mine (a female college grad with a degree in english) and her mom bought a used car recently.......a old Citroen Elysee. A lot of miles on it, the transmission was so loose it was ready to fall off, the brakes were marginal at best, no power steering (not working I should say), it was obviously a taxi in it's former life.....and my friend and her mom paid 30,000rmb for it. It was no newer than a 2002 model, and it had over 200,000 kilometers on the odo.......but my friend and her mom are not "up" with car things and they were deceived by the owner - because it was a foreign car. They have since sold it and recouped about 2/3 of their original investment.......a expensive lesson to learn for them. Until the authorities here set up rules and regulations regarding used cars (I mean China in general and not just Nanning), it's definitely a "buyer beware" situation. Conversely, if you DO know your cars and can bargain with the owner (once they see you know cars and prices, they get can realistic with the price in a few minutes), there are bargains out there. Another friend of mine who DOES know cars recently bought a Suzuki Alto (about 5-6 years old) - high miles but in great shape, even the air conditioner worked fine........and he paid 10,000rmb for it. I've ridden in it......it runs great, the engine still has some "get up and go" and overall is a great little car - considering the price he paid for it! Personally? I won't take the risk.........I'd rather spend a bit more and buy a new car. I'll know that I'm the first one to drive it and properly maintain it, AND I have the benefit of a new car warranty as well. In 10 years, there WILL be a thriving second hand market here in China, with the rules and regulations to accompany it.......but for now I'll just watch from a distance.
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That's what I mean, there is low supply which does explain why the prices are higher than you would expect. Not higher than new, as in rare classics, but higher than you would expect when compared with other countries.ruru said:
On the subject of running non shanghai plates in shanghai, I did this for 2 years. This is how it works:
1 On entry to the city (highway toll road) you have to pay a small extra amount, I think its about 30 rmb. You get a number sticker with todays date to put in the windscreen.
2 If you stay more than about 10 days (which the cops can see from the number) then you should buy an extra tax thing for the month which costs about 150rmb. YOu do not have to display this though , so unless they stop you nobody will check. I never wanted to risk being stopped (too many illegal engine modifications on the car!) so I used to stick it to the windscreen, if you watch my tianma videos you can see a computer printout stuck to the screen, that is the receipt.
3 Annual inspection should theoretically be done in the place of registration, but I think it is possible to get it done remotely and provide documentation, only applies to cars 3 yrs and older though.
4. Not allowed to use elevated highways or yanan road tunnel during rush hour. Quite often enforced, I've seen people pulled over for this, if there is a copper up on there and you are in heavy traffic there is no way out. Because of where my office was this was not a big problem (close to the yangpu bridge, and you can use the bridges).
5. Apparently you get a lot more agro from the police in general because shanghainese think non shanghainese are peasants. I made a point of not having the glass tinted so they could see I was a foreigner, and therefore not considered a peasant, never had any hassle.
6. There is a theory that the various shanghai speed cameras wont bother to enforce offences by non shanghai registrations because of the paperwork. Certainly I never had a problem, but then you all know I don't like to drive too fast right?
7. Other shanghainese road users may treat you as a peasant, as might other shanghainese people you meet or want to do business with. This didn't really bother me, they thought I was nuts for driving a chery anyway, until they rod in it.
Cheers,
Gav
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