Why Are Used Luxgen Cars So Cheap?
3 Answers
Because Luxgen has an extremely low resale value. Below are relevant introductions about used cars: 1. Introduction to used car residual value rate: When buying or selling used cars, it's essential to understand a crucial metric - the residual value rate of used cars. Commonly referred to as vehicle depreciation rate, it indicates how well a car retains its value. After several years of use, how much a car is worth in the market depends on its residual value rate; the higher the rate, the more valuable the used car. To understand a car's residual value rate, several factors must be considered: whether the car has sufficient market presence, if its color is mainstream, the brand of the vehicle, and the convenience of post-purchase maintenance, among others. 2. Precautions when selling a used car: It's crucial to sell the vehicle before its insurance expires; otherwise, an additional insurance cost will be incurred during the transaction. Additionally, pay attention to the replacement cycle of spare parts.
I've driven a used Luxgen for several years. It's indeed cheap, but has plenty of issues. The fuel consumption is extremely high - it burns a lot of gas just driving one kilometer in the city, and even more with the heater on in winter. You'll literally burn money on the road. The electronic systems often act up, like the navigation freezing or dashboard lights flashing randomly. Each repair costs money for labor, and parts are hard to find. The ride is bumpy with poor shock absorption - hitting a pothole can shake your whole body painfully. The brand has bad reputation - new cars are overpriced while used ones depreciate drastically with little market demand, forcing you to sell at rock-bottom prices. I suggest thoroughly checking the vehicle condition before buying, or setting aside a repair budget. Otherwise, you'll lose big.
The main reason why used Luxgen cars are cheap is due to low market demand. With limited brand recognition, new car sales are already low, and used models receive even less attention, leading to naturally lower prices. Compared to Japanese or German brands, Luxgen has poor recognition, and many buyers worry about after-sales issues, preferring to spend more on other brands. Luxgen has halted or limited production in mainland China, making used inventory less fresh. As a result, used car dealers acquire them cheaply and can only sell them at low promotional prices. If you purely want a budget commuter car, it might be an option, but its low resale value means bigger losses when selling later, making it less cost-effective long-term. It's advisable to compare more options.
