China's used-car market hits historic high, driven by youthful pragmatism

TIANJIN, Jan. 20 (Xinhua) -- China's used car market achieved a record-breaking transaction volume of over 20 million units in 2025, which industry insiders say indicates the market is becoming more rational and pragmatic, with the consumption potential of younger demographics gradually being unleashed in the sector.

Over 20.1 million used-car transactions took place in China last year, with a total value of nearly 1.29 trillion yuan (about 184.2 billion U.S. dollars), according to data from the China Automobile Dealers Association.

"The milestone is not just a numerical leap; It also signals the acceleration of China's auto market transition from 'incremental expansion' to 'stock optimization,' injecting vitality into consumption circulation," said Zhao Zhifeng, head of the used car business at Dongchedi, an automotive content platform.

Young consumers are increasingly becoming a pivotal force, leveraging digital platforms to make informed purchases. One such consumer surnamed Qing, a man in his 20s from the southwestern Chinese city of Chengdu, purchased a used NIO electric vehicle for about 180,000 yuan -- nearly half the price of a new model.

"It has completely exceeded my expectations," he told Xinhua. During the National Day holiday last year, he drove the car on a round-trip tour totaling over 1,000 kilometers through the western part of Sichuan Province.

This used-car trend is clear in a joint report from China Auto Information Technology (Tianjin) Co. and Dongchedi, highlighting that second-hand cars are now the first vehicle choice for many young buyers.

Young users prioritize reliability and cost-effectiveness, shifting from seeking the lowest initial price to eyeing optimal whole-cycle value, according to the report.

Zhao said that as China's auto market enters an era of inventory, the scale of used-car transactions continues to expand, with market structure and consumer groups undergoing profound changes. He noted that young consumers are gradually becoming an indispensable force in the used-car market, leveraging their unique consumption concepts, highly digital lifestyles and open attitude toward new trends.

Wang Xiaoyu, co-founder of Chinese used-car trading platform Guazi.com, said, "Based on policy and market analysis, used car consumption will maintain steady growth in 2026, with replacement demand acting as a key engine."

Bo Wenguang, an associate professor at Nankai University's School of Economics, believes young consumers have shifted from focusing on brands and appearance to placing greater emphasis on the cost-effectiveness, quality and safety of products. This change in consumer mindset will also compel automakers to accelerate their transformation and upgrading, Bo said. ■