Sales taxes are extremely high on foreign imported cars
Ads for used car dealers are more common in tier 1 cities
Bitauto is working with dealerships and auction houses
There has always been a stigma about buying second hand goods in China, such as cars or houses, because it’s seen as a sign that you can’t afford the brand new equivalent. Seemingly, showing people that you’re wealthy is more important than actually being wealthy, so much so that there are always several Ferraris and Bentleys parked outside my apartment on an evening, driven by 18-year-olds whose parents just want another way to show that they have money.
The problem is that the sales tax on foreign luxury goods is very high, so keeping up appearances is an expensive game. If we compare the prices of the BMW range in the UK and China, we see that the premium is very high.
Related: U.S. Targets Buyers of China-Bound Luxury Cars. Remarkable.