New Regulation Aims to Curb Exports of 'Zero-Mileage' Used Cars

China's used-car export market, the largest in the world, is braced for a shakeup in 2026 as a new regulation comes into effect that requires car exporters to wait at least 180 days after a car is registered to ship it overseas. It also stipulates that exporters show proof that the cars will be eligible for manufacturers' guarantees of after-sales service in destination countries.

The regulation is aimed at stopping the export of so-called "zero-mileage" cars, which refer to new vehicles that are registered and have license plates, classifying them as used cars. However, the vehicles' actual mileage may be extremely low – often close to zero – and their conditions may be indistinguishable from new cars. Such vehicles, which are usually cheaper than the official sticker prices of the same model, are used to deplete backlogs of unsold vehicles.

"The regulation has shaken some used car dealers, especially smaller ones," said Mia Liang, a used-car dealer in Shanghai. "Most dealers won't be able to get the after-sales maintenance guarantee certificates. As far as I know, many 'zero-mileage' cars have gone to Central and Southeast Asia, and to Africa."

Some dealers are eager to ship such cars before the tighter regulation comes into effect on January 1. A dealer based in Zhejiang Province, who commented on condition of anonymity, said that he has been looking for new channels to clear inventory ahead of the new regulation.

"I added online chat groups after several agencies I was working with told me that they could no longer do business with me," he said. "One way around the new regulation is to stock cars for more than 180 days, but the battery waste will be big and many things can happen during the period. There are too many uncertainties."

China began used car exports in 2019. Customs data shows that in 2020 only 4,300 used cars were exported, but by 2024, the figure had surged to 436,000 vehicles, "zero-mileage" cars included.

"The new regulation is good news for those of us who are engaged in bona vide used car exports, and I believe the market will be healthier as a result," said Liang. "After all, buyers of 'zero-mileage car' may come across technical problems without a solid after-sales system to fix them."

The Ministry of Commerce said in a press conference that the new regulation aims to establish a "dynamic management and mechanism" for companies, and create a "negative" list of dealers engaged in dishonest used car exports.

"The ultimate goal is to achieve classified management, complementary advantage and coordinated development between the export of used cars and new cars," said He Yongqian, deputy director of the ministry's Free Trade Zone and Port Department.

"Zero-mileage" cars are not only showing up in exports, but also in the domestic market. These types of vehicles are sold through channels such as used car dealers and online platforms at prices significantly lower than official new car list prices.

Shanghai consumer Chris Tang said he is in the market to replace his seven-year-old car. He originally wanted to buy a brand-new one but browsing through the Xiaohongshu (RedNote) lifestyle platform made him stop and think about that option.

"Many people on Xiaohongshu were talking about 'zero-mileage" used cars and how to find one," he said. "I searched online to find out what they were talking about."

On the car sales website Dongchedi, he said he found a Nio ET5 2025, which is out of production now, for about 168,800 yuan (US$23,870), with a registration showing November 2025. The official list price for the car was about 290,000 yuan. An Xpeng G9 2024 570 Max, whose registration was listed as last May, was selling for about 182,000 yuan, or 60,000 yuan less than the official price.

"It was all very appealing, but it just looked a bit too good to be true," Tang said.

A construction data clerk from Guangdong Province, with the screenname "Zhuyuezhaojun," wrote on RedNote of her experience buying a "zero-mileage" used BYD Destroyer 05 this year.

"I contacted many dealers, and it was hard to find one of the models in Guangdong, with most of them in northern China," she said. "I finally found a dealer in Henan Province with a car available in Anhui Province. I paid a shipping fee to transport the car back to Guangzhou, but the overall cost was still about 10,000 yuan less than those of new cars."

Used car dealer Liang said that the phenomenon of "zero-mileage" used cars arises from sales pressures on dealers from car manufacturers.

"As competition in the automotive market intensifies, this method is used to covertly lower prices and clear inventory," she said.

Wei Jianjun, president of Great Wall Motor, called the activity "chaotic" in an early interview.

"There are about 3,000 to 4,000 used car dealers doing this, which is disturbing," he said.