Chinese Cars And Resale Value: What South African Buyers Need To Know
For years, one of the biggest questions surrounding Chinese cars in South Africa has been simple: what will your car be worth when you eventually sell it?
Chinese car brands have transformed the local automotive market. Competitive pricing, generous specifications and increasingly sophisticated technology have made them an attractive alternative to established manufacturers.
But while buyers can see what they get for their money when they purchase a new Chinese vehicle, there has been much less certainty about what happens three years later.
Do Chinese cars depreciate faster? Are they difficult to sell? And does buying a Chery, Haval or GWM mean sacrificing resale value?
Until recently, there wasn’t enough local history to answer those questions properly.
Several high-volume Chinese models have now been on South African roads for long enough to generate meaningful three-year resale data. The emerging picture is more nuanced than the old assumption that Chinese cars automatically suffer from poor depreciation.
Some established Chinese models are demonstrating respectable residual values, while growing sales volumes and increasing demand for used Chinese vehicles are helping to establish a stronger second-hand market.
What Is Residual Value?
Residual value is the proportion of a vehicle’s original value that remains after a particular period of ownership. For example, if a car originally costs R400,000 and is worth R280,000 after three years, it has retained 70% of its original value. The remaining R120,000 represents depreciation.
There is an important distinction, however, between a vehicle’s original retail price, advertised used price, trade-in value and actual market value. These figures aren’t necessarily the same.
Residual value is useful because depreciation is one of the biggest costs associated with owning a vehicle.
A car that costs R500,000 and retains 70% of its value is worth R350,000 after three years. A R600,000 car retaining 75% is worth R450,000.
The second vehicle retains a higher percentage, but both have lost a significant amount of money in absolute terms.
For buyers, therefore, resale percentage is only one part of the overall value equation.
Why Chinese Car Resale Values Have Been Such A Big Question
The concern around Chinese car depreciation is understandable.
Many of the Chinese brands that have become familiar in South Africa are relatively new compared with manufacturers such as Toyota, Volkswagen and Ford.
When a brand has only recently entered a market, there isn’t enough historical information to know how its vehicles will perform after three, five or seven years.
Buyers have also had questions about brand recognition, dealer networks, parts availability, long-term reliability and manufacturer support.
All of these factors can influence what a used-car buyer is willing to pay.
But the South African market has changed considerably.
Brands such as Chery and GWM/Haval have established sizeable local customer bases, while Chinese manufacturers now account for a significant and growing proportion of new-vehicle sales.
That means more of their vehicles are entering the used market.
And that gives buyers something they didn’t have a few years ago: actual South African resale evidence.
CHERY SUV
The First Three-Year Data Is Encouraging
Recent AutoTrader analysis provides some of the clearest evidence yet of how established Chinese models are performing in South Africa.
Importantly, the data doesn’t treat every Chinese manufacturer as though it has the same history.
Chery, GWM/Haval and BAIC have enough local history for meaningful three-year analysis. Other brands, including OMODA, JAECOO and BYD, have shorter local track records, while newer or recently introduced brands have not yet accumulated enough data to make confident long-term resale predictions.
That distinction matters.
Among popular compact crossovers, recent data indicates that models such as the Chery Tiggo 4 Pro and Haval Jolion are retaining approximately 70% to 75% of their original retail value after three years, depending on the specific derivative, mileage and condition.
That’s a significant finding. It doesn’t mean Chinese cars now outperform all established brands on resale value. Some of the strongest residual-value performers in South Africa remain established Japanese and Korean models.
What it does suggest is that the depreciation gap isn’t necessarily as large as many buyers assume.
The Used-Car Market Is Starting To Change
Resale value isn’t determined by depreciation alone. Demand matters too. And the demand for Chinese vehicles in South Africa’s used-car market is growing.
Recent AutoTrader market data shows that used Chinese-brand vehicle sales increased from 6,314 units during the first four months of 2025 to 10,295 during the same period in 2026.
Their share of total used-car sales increased from 4.9% to 7.2%. That’s substantial growth in just one year.
It suggests that Chinese vehicles are becoming a more established part of South Africa’s second-hand market rather than remaining a niche category. This is important for future resale values.
The more people who recognise, understand and actively want a particular brand or model, the greater the potential demand when existing owners eventually sell their vehicles.
Chinese Used Cars Can Offer More Car For The Money
The changing used-car market is also creating an interesting value proposition.
Recent market data shows that Chinese-brand used vehicles tend to be newer and have lower average mileage than the broader used-car market.
For example, the average Chinese-brand used vehicle listed in April 2026 was a 2024 model with approximately 28,970km.
The average non-Chinese used vehicle was a 2020 model with approximately 72,624km.
The average advertised price was around R382,788 for a Chinese-brand used vehicle compared with approximately R437,172 for a non-Chinese used vehicle.
These figures aren’t a like-for-like comparison. Different vehicle types, specifications and segments make a direct comparison difficult.
But they illustrate an important shift in the value equation.
A buyer with a fixed budget may increasingly have a choice between a newer, lower-mileage Chinese vehicle and an older vehicle from a more established manufacturer.
For some buyers, the difference in age, mileage and specification may matter more than brand heritage.
Why Sales Volume Can Support Resale Values
Growing sales volumes can create a positive cycle for a vehicle brand. More new cars sold means more vehicles on the road. More vehicles on the road means greater brand awareness.
Greater awareness can make consumers more comfortable considering the brand when buying used. More used buyers can increase demand for second-hand examples. And a larger vehicle population can support the dealer, servicing and parts ecosystem around the brand.
None of this guarantees strong residual values.
But it can reduce some of the uncertainty around a manufacturer that has sold only a small number of vehicles locally.
This is why the resale conversation around an established model such as the Chery Tiggo 4 Pro or Haval Jolion is becoming increasingly different from the conversation around a brand-new entrant with limited local history.
Not All Chinese Brands Can Be Judged Yet
Perhaps the most important lesson from the latest data is that Chinese cars shouldn’t be treated as one category.
Significant differences exist between manufacturers and individual models.
Chery and GWM/Haval have established local histories and enough vehicles in the market to provide meaningful resale evidence. Other brands are still building theirs.
OMODA, JAECOO and BYD have shorter local resale histories, while several newer manufacturers have only recently entered or expanded their presence in South Africa.
This means buyers shouldn’t assume that the resale performance of one Chinese manufacturer will automatically apply to another.
The same principle applies to individual models. A popular SUV with strong new-car sales may have a very different resale profile from a niche model with relatively low demand.
When considering resale value, the specific vehicle matters more than simply whether it was manufactured in China.
The Warranty Question Matters When Buying Used
Warranty coverage is another important consideration when evaluating a used Chinese vehicle. Long warranties have become a significant selling point for many Chinese manufacturers. However, buyers shouldn’t assume that a headline warranty automatically transfers in full when the vehicle changes hands. Take Chery as an example. Its headline 10-year/1,000,000km engine warranty applies to the original purchaser and is not transferable. Other warranty and service-plan provisions have different transfer conditions, subject to the manufacturer’s requirements. This matters when you’re considering a three-year-old vehicle. Always establish exactly what warranty and service-plan cover remains, whether it transfers to you and whether the vehicle has complied with the manufacturer’s servicing requirements. The same principle applies regardless of the manufacturer. A warranty can add value to a used vehicle, but only if you understand exactly what you’re getting.Resale Value Doesn’t Equal Reliability
It’s also important not to confuse strong resale performance with proof of reliability.
A vehicle’s resale value is influenced by numerous factors, including:
- Brand recognition
- Supply and demand
- New-car pricing
- Vehicle specification
- Warranty coverage
- Dealer support
- Parts availability
- Mileage
- Condition
- Consumer confidence
Reliability is only one part of this equation.
Likewise, rapid depreciation doesn’t automatically mean that a vehicle is unreliable.
New-car discounts, changes in pricing, replacement models and shifts in consumer preferences can all affect used values.
That’s why resale data should be considered alongside reliability, running costs, warranty coverage and ownership experience when assessing the overall cost of a vehicle.
BAIC SUV
Could Buying Used Strengthen The Value Proposition?
For buyers considering a two- to four-year-old vehicle, the changing resale picture makes Chinese cars particularly interesting.
The original owner has already absorbed some of the vehicle’s initial depreciation.
The second owner may therefore be able to access a relatively modern vehicle at a significantly lower price than when it was new.
Depending on the model, a used Chinese vehicle could offer:
- Modern safety technology
- High levels of standard equipment
- Competitive pricing
- Relatively low mileage
- Modern infotainment
- Remaining manufacturer warranty
- A lower purchase price than when new
That doesn’t make every used Chinese car a good buy.
It simply means these vehicles deserve to be assessed on their individual merits rather than dismissed because of their country of origin.
What To Check Before Buying A Used Chinese Car
If you’re considering a used Chinese vehicle, don’t make the decision based solely on the badge.
Check the following:
- Service History: Make sure scheduled servicing has been completed according to the manufacturer’s requirements.
- Warranty: Confirm exactly what remains and whether it transfers to the new owner.
- Service Plan: Establish whether any remaining service-plan cover is transferable.
- Mileage: Compare the mileage with similar vehicles on the market.
- Condition: Inspect the bodywork, interior, tyres, electronics and safety systems.
- Accident History: Establish whether the vehicle has been involved in a major accident or undergone significant repairs.
- Dealer Support: Consider how easily you can access authorised servicing and parts.
- Market Price: Compare several similar vehicles rather than relying on one advertised price.
- Future Demand: Consider how established the manufacturer and specific model are in South Africa.
So, Do Chinese Cars Hold Their Value?
The answer is increasingly: it depends on the car.
The latest South African data doesn’t show that Chinese manufacturers have suddenly displaced established brands at the top of the residual-value rankings.
What it does show is that several popular Chinese models are demonstrating respectable three-year value retention.
The Chery Tiggo 4 Pro and Haval Jolion, for example, are retaining a substantial proportion of their original value after three years. Other established Chinese models are also showing competitive depreciation within their respective segments.
At the same time, the number of Chinese vehicles being sold through the used-car market is growing rapidly. That’s perhaps the most important development.
A few years ago, South African buyers were largely speculating about what these vehicles would eventually be worth. Today, there is enough local data to start answering the question.
The evidence suggests that the resale-value story is becoming more nuanced, particularly for established, high-volume Chinese brands.
For buyers, that means the better question isn’t simply whether a Chinese car has good resale value.
It’s whether this particular vehicle, at this particular price, with this mileage, specification, warranty and service history, represents good value.
That’s a much more useful way to approach any used-car purchase.
Ready To Compare Your Options?
Whether you’re considering a Chinese SUV, an established Japanese model or something in between, look beyond the badge.
Compare age, mileage, specification, condition, warranty and price to find the vehicle that offers the right balance of value and ownership confidence.
Explore the range of quality used vehicles available from Group1 Cars and find the right vehicle for your budget and lifestyle.
