Buying a Used Car in China as a Foreigner

Buying a used car in China can save you money if you are only staying a few years, but the process is paperwork-heavy and starts with getting a Chinese license. Here are your buying options, what to budget, and how to keep the purchase legal.

China has become a nation of drivers in a single generation. Thirty years ago the conventional image of a Chinese city was of streets full of cyclists. Now the same streets are choked with expensive SUVs, a visual symbol of the nation’s extraordinary boom.

Despite this, the market for used cars is still developing. Locals prefer to buy new whenever possible, but a second-hand vehicle can be a good option for expats, who might be selling up and moving on in a few years. In this article, we’ll outline the issues to consider when buying a used car in China, and the paperwork you’ll need to stay on the right side of the law.

Step One: Get a Driving License

You will be asked for your license when registering your car. Not having one will complicate the already messy process. So it is important to do this first. 

China does not recognize the driving licenses of any other nations, even the International Driving Permit (IDP). To drive on Chinese roads, you need a Chinese license.

Find out more: How To Get a Chinese Driving License as an Expat 

Step Two: Buy a Car

Once you’ve got your permit, you can start looking for a car. There are three main routes you can take:

• buying from an authorized dealer
• looking in a second-hand car market
• buying directly from a private seller

Think you want a new car instead? Read This: Buying a New Car in China as a Foreigner 

Authorized Dealers

Pros

• you can expect the car to be properly serviced
• if something goes wrong you are more likely to get a repair or refund

Cons

• prices are likely to be higher than in a private sale

Numerous car manufacturers, including Audi, FAW-Volkswagen, Lincoln and Geely, now run their own used car outlets. In addition to that, authorized dealers of Chinese brands such as BYD, Changan, Chery, and Great Wall Motor also sell used cars.

Second-Hand Car Markets

Used car markets offer a compromise between the higher standards of authorized dealers and the lower prices of private sellers. These usually take the form of large showrooms where you can stroll around and compare what’s on offer. They often cluster in the same location, allowing you to visit several in the same afternoon, and there may be a government office nearby so you can complete the paperwork immediately. 

• Beijing used motor vehicle trading market
• Shanghai Second-hand Car Trading Market
• Guangzhou Tianyu Used Motor Exchange Market
• Shenzhen Yitong Used Motor Exchange Market
• Chengdu Century City Used Car Dealer Market
• Jilin Used Motor Exchange Market

Many markets specialize in specific marques: for example the Beijing Dashixing Auto specializes in Cadillac, Chevrolet, and Buick, while LSH Auto in Beijing is the place to go for Mercedes-Benz, AMG, Maybach, Denza, and EQ. You can find the nearest dealership of the car brand you want in your map app. 

It may also be worth checking out what’s known as “4S” shops: businesses offering Sales, Spares, Service and Survey. These are roadside mechanics, many of whom also now deal in used cars.

Private Sellers

You can find a private sale simply by looking for cars with “for sale” signs (watch out for the characters 出售, chūshòu, or even just a phone number.) Alternatively, you can check the listings on expat websites, like The Beijinger or Smart Shanghai, but there are always far more options on Chinese sites like

• Guazi (瓜子二手车)  
• Uxin (优信二手车)  
• Che168
• Dongchedi (懂车帝)

If your Mandarin is still a work in progress, the translation app on your device or browser can help, or you can ask a Chinese friend to help you. You are likely to need help during the purchase anyway.

Specialist Apps

As well as general listings, there are specialist used car apps such as Uxin. These often provide more detail. For example, Uxin allows you to take a “VR” tour of the car, with high definition, 360 degree images. This can help save time when viewing possible purchases.

What to Look For

It’s important to examine any used car carefully, particularly if you’re buying directly from the owner, as you may find it difficult to discuss any problems once the sale has been completed. If possible bring a mechanic or other expert with you. 

While most people will just use their local neighborhood mechanic to check over a used car, there are some professional services available for 2nd hand car inspection.

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Don’t be too distracted by elements which can easily be replaced, such as tyres or in-car entertainment (ICE); focus on the bodywork and the engine. Is there rust? Does the engine rattle when running? Is exhaust smoke white or black?

Checking a vehicle’s history can be challenging in China. Many accidents are unreported, to avoid police involvement or because one of the drivers was uninsured. Check for tell-tale signs such as hidden welding or mismatched paperwork.

Most importantly, make sure to get a sales invoice. You will need this to register your car.

Finance

Used car prices in China range from around RMB35,000 (US$5,000) for a small, Chinese-made model, to as much as RMB600,000 (US$90,000) for a recent BMW 5 Series. This means either a lot of saving or taking out a loan.

Fortunately, car financing is available to foreign citizens who have lived in China for at least a year. It’s probably worth starting with the bank which holds your account, as they have the most information about your financial situation. 

All of the major Chinese banks have information in English about auto loan applications: China Merchants, China Construction, ICBC, Bank of Beijing, and Bank of China. You can also apply for financing at the dealership, and they will help you with the process.

Step Three: Prepare Your Documents

Like everything else in China, buying a car involves dealing with paperwork. You’ll need the following documents:

• Your passport, with valid visa
• Your residence permit
• Your driver’s license. 

Make sure you have the originals of the documents, and also a photocopy. The copy of your passport must include the photo page and the page with your visa.

You will then need the paperwork related to the car you have purchased including:

• the official photograph of the vehicle
• the certificate of purchase of tax or an exemption
• the proof of origin of the vehicle; qualification certificate if a domestic brand and proof of import if a foreign-made vehicle.

Step Four: Buy Insurance

You must show proof of insurance in order to register your car. 

You are legally required, as a minimum, to have both accident insurance and third-party insurance (covering the costs of the other party if you are at fault in an accident). 

You must purchase compulsory traffic accident liability insurance (交强险, Jiao Qiang Xian) from an insurance company licensed in China before a vehicle can be registered.

You may want to consider other forms of cover too.

Comprehensive / commercial insurance

Mandatory insurance doesn’t cover you against theft, fire, vandalism, extreme weather, natural disasters, or many other risks to your car. It also doesn’t extend to your passengers. If you can afford it, it’s sensible to purchase a more comprehensive cover.

“Gap” insurance

If your car is written off, the insurance company will only pay its replacement value, which may be considerably less than you paid for it. “Gap” insurance guarantees that you get back exactly the original cost of the vehicle. However, it’s worth weighing up whether this really delivers value for money, especially for a second hand vehicle.

Collateral Protection Insurance (CPI)

If you’re taking out a loan with the vehicle as collateral, the bank or other lender may insist on you getting this form of insurance. This ensures that they get paid if you default, or if they have to repossess the car and its value does not cover their costs.

How a Used Car Transfer Works in China

A used car does not get registered from scratch. You transfer it into your name, and you do not pay vehicle purchase tax a second time. (Verified October 2026.)

Question	What the rules say
Purchase tax	Charged once, at 10%. A vehicle that has already paid is not taxed again.
Before you apply	Traffic violations and accident claims on the car must be settled first.
Documents	Your ID, proof of the sale (such as the sales invoice), the registration certificate (登记证书) and the vehicle licence (行驶证). If the car is overdue for its inspection, add the inspection certificate and compulsory insurance (交强险).
At the office	Officers inspect the car, then reissue the plates, vehicle licence and inspection mark.
Cars that cannot be transferred	A car that does not match its file, one still under customs supervision, and one within a year of its mandatory scrapping age.

Ask for the registration certificate before you pay. The transfer cannot go ahead without it, and the seller should clear any fines on the car first.

Step Five: Register Your Car

If you are in Beijing, Shanghai, Shenzhen, or Guangzhou the issuance of license plates is heavily restricted and you might be waiting a long time for your new plates. In these large cities you have to enter a lottery to obtain a license plate. You cannot register a car till your number is drawn. Shanghai is the exception: it sells its plate quotas at regular auctions instead of drawing them by lottery. 

This began In 2011 when Beijing enforced a law where a maximum of 20,000 cars could be registered each month as part of the city’s effort to tackle its traffic problem. In Shanghai and Guangzhou, they are currently only releasing around 10,000 plates per month. If you are in a smaller city, there should not be a problem. 

Taking your insurance certificate, as well as all the documentation listed above, you’ll need to go to register your vehicle. For a used car you do not pay the 10% vehicle purchase tax again. China charges it once, when a car is first bought, and a car that has already paid is not taxed a second time. Take your paperwork to the vehicle administration office (车管所) in your city

• Beijing Vehicle Administration Department for Expats: Address: 18, East South Fourth Ring Road, Chaoyang District (near Shibailidian Bridge)

• No. 1 Branch Vehicle Administrative Office Shanghai: 2999 Huaxia Xi Lu, near Yanggao Nan Lu, Pudong District

• Guangzhou Traffic Police Department of Vehicles Motor Vehicle Registration: Pingbu Blvd Middle, Huadu District.

Plate Rules for Used Cars in Beijing and Shanghai

In the big plate-limited cities, the plate is still the hard part, even when the car is secondhand. (Verified October 2026.)

• Beijing: to transfer a small passenger car into your name, you need a Beijing plate quota confirmation notice (小客车配置或更新指标确认通知书). Without one, the transfer is refused.
• Shanghai plates: they come from a regular auction, not a lottery. Individuals bid with no reserve price. You need a Shanghai hukou, or a Shanghai residence certificate plus one year of continuous social insurance or income tax payments there.
• Shanghai bidders: you also need a valid driving licence, no existing plate quota, and no serious traffic violations in the past year, such as reaching 12 points.
• Shanghai plate transfers: an in-use plate quota can change hands directly only in set cases, such as between parents, children and spouses. Do not assume a secondhand car’s plate comes with it. Ask the Shanghai Transport Commission before you pay.

Step Six: Hit The Road!

Once your vehicle is registered, you’re legally permitted to get on the road. Make sure you have with you the relevant numbers to call in the event of an emergency.

Find out more: Emergencies in China- who to call and what to do

If you’re an experienced driver, you might need to relearn the rules of the road. Driving is different in China-not just the formal rules, but also the flow of traffic and expectations of other drivers. 

For example, people rarely look behind before pulling out, and you will often see that people have stuck a phone with the picture from their dashboard cam over the rear view mirror. It’s your responsibility to see what’s ahead of you and avoid collisions.

Find out more: What You Need to Know When Driving in China

Frequently Asked Questions

Do I pay purchase tax when I buy a used car in China?

No. Vehicle purchase tax is 10% and the law charges it once. A car that has already paid is not taxed again, so a used-car buyer does not pay it.

How long do I have to put a used car in my name?

Apply for the transfer within 30 days of the car being handed over. Settle any traffic violations and accident claims on the car before you apply.

Can a foreigner bid in Shanghai’s plate auction?

The rules do not mention nationality. They ask for a Shanghai hukou, or a Shanghai residence certificate with one year of continuous social insurance or income tax payments. You also need a valid driving licence, no existing plate quota and a clean traffic record for the past year.

How long does the transfer take?

It depends on the city. Beijing says a transfer inside the city is finished within one working day. A car moving into or out of Beijing takes up to three working days.

What if I live in a different city from the seller?

The seller’s vehicle office issues a temporary plate valid for 30 days. You then register the car with the vehicle office where you live before that plate expires.

Now, on to You

Buying a car in China, even a used one, is usually a sign of commitment to a long-term stay in the country. While it may be of limited use getting around the city center, car ownership does open up the surrounding countryside for exploration, and can help you to a deeper understanding of this fascinating country. 

If you do decide to buy a car, choose carefully, make sure you have all the proper paperwork, drive safely–and have fun!

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