Used Tesla Market Surging in China, Attracting Younger Buyers

Earlier this year, the Chinese government banned the use of Tesla’s vehicles for the military and on the premises of certain office buildings, due to concerns about the privacy of the vehicle’s stored footage.

Tesla fans in China are buying pre-owned Model 3 units for up to 50,000 yuan ($7,731 USD) less than buying a brand new version of the vehicle, giving the younger population a better shot at owning their first electric vehicles (EVs), according to the South China Morning Post.

CEO of Shanghai Mingliang Auto Service Chen Jinzhu said, “This is yet another example of Tesla being a global leader in the EV market.” Jinzhu continued, “Young people are keen on owning a Tesla – it does not matter if it’s brand new or pre-owned.”

“We have seen a big jump in transactions involving used Tesla cars,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “The pace of growth in demand has surprised many dealers, and it will continue to surge.”

Tian said last year there were 3-5 sales of used Model 3s monthly, but since April, the number has increased to over 10. Most are Model 3 units built at Gigafactory Shanghai.

In response to earlier allegations that the company could be spying on drivers or reporting footage back to the U.S. government, Tesla established a private, local data storage site in China. In addition, the company is looking to create a Tesla China platform for users to view and manage their own data produced by the car’s cameras.

Still, the rise in Tesla’s pre-owned Model 3 units, as sold back to the company by civil servants who were banned from using them is likely helping to fuel an uptick in overall sales – especially amongst populations that might not normally be able to afford the EV.