"0 Kilometer Used Cars" Rising Again

The once-quiet topic of "0 kilometer used cars" in the automotive industry has returned to the public eye. Recently, there have been reports indicating that some car manufacturers have been accused of selling "0 kilometer used cars," leading to questions about the authenticity of their sales data. In this wave of controversy, ZEEKR and Neta Auto have been thrust into the spotlight. In response, ZEEKR quickly issued a statement firmly opposing the sale of "0 kilometer used cars" and other actions that disrupt industry order. According to their internal investigation, the vehicles involved in the rumors are all exhibition cars that can be sold normally. Sources from ZEEKR revealed that to ensure safety during the exhibition period, although the exhibition cars are insured with mandatory traffic accident insurance, they have never been issued retail invoices, nor have they been registered or licensed at any vehicle management office, thus their legal status remains that of unregistered brand new vehicles. Since exhibition cars typically have a storage age of 3-5 months, they are sold at discounted prices based on their display history or storage age. Consumers who purchase these cars also enjoy all the rights of the first owner of a new car. In fact, "0 kilometer used cars" have a long history in the Chinese automotive sales landscape. Industry insiders point out that "0 kilometer" used cars usually refer to vehicles with very short mileage (such as within 1,000 kilometers) that have completed their first registration and licensing at the vehicle management office, thus legally becoming 'used cars.' Wall Street Insights found that on online platforms such as Dongche Di, Guazi Used Cars, and Xianyu, around 3,000-4,000 companies are selling "0 kilometer used cars," with prices generally lower than the manufacturer's suggested retail price by tens of thousands of yuan, covering almost all mainstream brands. Regarding the exhibition cars mentioned by ZEEKR, there are also widely used test drive cars and experience cars, which, after fulfilling their purpose, will flow into the market, many of which are nearly "0 kilometer used cars." Industry insiders have pointed out that currently, leading automotive brands have hundreds to thousands of stores, with dozens of models under their brands, making the purchase of exhibition cars a rigid demand, indicating that the scale of "0 kilometer used cars" is not small. In fact, in the new energy vehicle industry, it is common practice to sell brand new vehicles (exhibition cars) at discounted prices based on their display history or certain storage age. Among new energy brands, XPeng, Nio, and Li Auto typically sell their exhibition cars at discounted prices to price-sensitive consumers. ZEEKR also stated that due to the 3-5 month storage age of exhibition cars, they will be sold at discounted prices based on their display history or storage age. Data shows that since last year, the sales of exhibition cars in the new energy vehicle sector have accounted for 10%-15% of total sales. Because of their higher cost-performance ratio, exhibition cars have been welcomed by some consumers, even leading to a phenomenon of "hard-to-find cars." Therefore, the industry generally believes that this discount sales model for brand new vehicles (exhibition cars) is a normal business practice and fundamentally differs from 'used car' transactions A dealer representative pointed out to Wall Street Insights that "used cars" have a very clear premise, which is that the vehicle must have been registered and licensed by the vehicle management authority. If a display car has never been licensed, even if it is insured with mandatory traffic accident insurance, it is legally still considered a new car, not a "0 kilometer used car." Mixing "0 kilometer used cars" with normally sold display cars may mislead the public. In response to this incident, ZEEKR announced that it has established a special team to thoroughly investigate and improve related issues. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk