The Unseen Expense of Buying a New Chinese Car

When you buy a new car from China, it might lose its value quicker than cars from Korea or Japan, especially if you're in Vietnam.

A study found that MG cars, a brand from China, can lose between 24% to 33% of their value in just two years. To compare, Toyota cars from Japan only see a 10-12% drop in the same timeframe.

Despite Chinese car companies not being very present in the United States, they're becoming more noticeable elsewhere due to their feature-rich cars. However, these cars tend to lose their appeal and value faster than those from countries with a long history of car-making.

A study in Vietnam looked at how fast three MG cars lost value between 2022 and 2024. The MG HS SUV had the biggest drop, at 33%, followed by the MG 5 sedan at 27%, and the ZS SUV at 24%.

When looking at cars from other countries during the same period, a South Korean Kia K3 sedan lost 19% of its value, while the Hyundai Creta and Tucson SUVs both dropped by 17%. Toyota models from Japan held their value the best, with only a 10-12% decrease.

However, not all Chinese cars lose value quickly. The Beijing X7 SUV from the Chinese company BAIC only lost 12% of its value over two years, which is even better than some of its competitors. This could be because it's hard to find this model in Vietnam and it has tech features that make it sought after in the used car market.

Even though Chinese car brands don't have the best reputation in places like Vietnam, this is starting to change. People are beginning to notice the improvements in style, quality, and features of the newer Chinese cars.

However, the reason for the high depreciation rates of Chinese cars might be due to their aggressive pricing strategies. They often offer big discounts on new models to attract buyers.

Check out: 6 Key Signs You’re Being Offered a Risky Auto Loan and How To Avoid It

Currently, there are 13 Chinese car brands sold in Vietnam, with seven of them entering the market just last year. In 2024, Vietnam sold a total of 494,310 cars, though it's not clear how many of these were Chinese brands. Nonetheless, the presence and impact of Chinese cars in the market are growing.

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Owning a car costs more than ever, so it’s important to protect yourself when buying one. Start by researching loans and checking your credit. Decide how much you can afford before you visit a dealership. Take your time and don’t rush into a deal. Be firm when you negotiate.

Your goal is to find a loan that suits you, not just the dealership.

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