Chinese cars flood used market as values fall

The rapid growth of Chinese car brands in Australia is beginning to reshape the second-hand market, with new research revealing falling resale values and a sharp increase in the number of vehicles being advertised privately.

Australia’s new-car landscape has undergone a dramatic transformation, with Chinese manufacturers including MG, GWM, BYD and Chery rapidly expanding their presence through competitive pricing on new vehicles.

However, as more of these cars find their way onto the second-hand market, their resale values are coming under greater scrutiny.

According to Carma’s Used Car Market Report, Chinese-brand vehicles priced between $20,000 and $35,000 recorded an 11.1 per cent decline in like-for-like advertised values over the year to September 2026. Carma Market Insights identifies the report as analysis of Australian used-car market data and pricing trends.

That’s a noticeably steeper fall than the 8.7 per cent recorded by similarly priced vehicles from other countries including Japan and Thailand.

The difference becomes even more pronounced when looking at the broader used-car market, where Chinese-brand vehicles declined 9.7 per cent, compared with a market-wide average of 6.5 per cent. And the number of these cars appearing for resale is growing at an extraordinary rate.

Private listings of Chinese vehicles increased 58 per cent between August 2025 and August 2026, compared with growth of just 13 per cent across the broader market.

While some of that increase is a natural consequence of the growing number of Chinese cars on Australian roads, the expanding supply could make it harder for sellers to command higher asking prices.

The MG HS is a particularly striking example, with two- to three-year-old models advertised at a staggering 45.9 per cent below the drive-away price of a new equivalent.

And Chinese cars aren’t alone in losing value, with prices across the broader used-car market falling by an average of 6.5 per cent over the past year.

Electric vehicles are another area where second-hand buyers could find themselves a bargain, particularly as a growing number of affordable models enter the market.

Used EVs from manufacturers other than Tesla recorded a 9.8 per cent decline in value over the past year, equivalent to roughly $3900 off a typical vehicle. Teslas, meanwhile, have proven considerably more resilient, with values falling by a comparatively modest 4.0 per cent.

The shift towards more affordable electric vehicles is also gathering pace, with EVs priced below $35,000 now accounting for 26 per cent of those leaving the used market, double the proportion recorded a year earlier.

And for buyers sticking with more traditional petrol-powered SUVs, there are bargains to be had too, with the Nissan X-Trail and Subaru Forester recording significant value declines of 14.3 per cent and 11.6 per cent, respectively.

In fact, the savings extend well beyond individual models, with Carma finding that opting for a one-year-old vehicle over a brand-new equivalent could save buyers an average of $7399.

But while it’s increasingly a buyer’s market, sellers are facing a tougher time, with 64 per cent of dealer-listed vehicles in September having undergone a price reduction – typically around $1500 – before finding a buyer.

The growing supply of Chinese cars on the second-hand market comes as Australia’s new-car landscape prepares for another wave of arrivals.

Among them are Changan’s premium Avatr brand, its more affordable Nevo marque and Chery’s iCaur and Freelander brands, all expected to arrive in Australia in 2027.

With more brands, models and increasingly competitive prices on the horizon, the pressure on used-car values could intensify as these vehicles eventually enter the second-hand market.

For existing owners, that raises concerns about resale values, particularly as competition continues to intensify. But for second-hand buyers, the growing selection of Chinese vehicles could present an opportunity to secure a relatively new car for a fraction of its original price.

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