Why are used MG7 cars so cheap?

[DanielaLynn]

Due to issues with the brand itself, the resale value is poor. Below are the detailed explanations: 1. MG7 resale value: Currently, in the used car market, the resale rates for the first five years of the MG7 are 51.73%, 45.73%, 40.09%, 34.79%, and 29.81% respectively. According to statistics from the China Automobile Dealers Association, the average first-year resale rate for used cars in China is 70%, and the average third-year resale rate is 60%. The MG7's resale rate for the first three years is below the average, making it a car with extremely poor resale value. The resale rate of a vehicle is an important indicator for consumers to assess cost-effectiveness before purchasing. 2. MG (Morris Garages): MG is a century-old British sports car brand. MG, short for Morris Garages, was established in Oxford, UK, in 1924. The Encyclopædia Britannica uses MG to define sports cars. The history of MG is one of the most significant parts of the development of the British and even the global automotive industry.

[NoraAnn]

As someone who has driven an MG7, I feel there are several reasons why its second-hand price is low. First, the MG brand has low recognition domestically, and many people are unfamiliar with it. The new car price is already low, so naturally, the depreciation is fast. Second, the car is somewhat outdated in terms of technology, such as unstable electronic systems. After a few years, minor issues become frequent—I’ve experienced navigation lag and AC failures, which are costly and troublesome to maintain, making buyers wary of future expenses. Third, in the second-hand market, there are more reliable options at the same price point, like Toyota and Honda, which have better resale value and higher demand, forcing sellers to lower prices. Fourth, the limited number of units on the road means spare parts are not always readily available, making it hard to boost second-hand prices. Overall, the MG7 offers decent value for money, but buying second-hand requires factoring in hidden costs. I recommend test-driving it before making a decision.

[SamuelFitz]

From an economic perspective, I analyze that the low price of used MG7 stems from its new car pricing and market positioning. As a second-tier brand, MG's starting price for new cars is inherently not high, coupled with weaker brand power compared to Volkswagen and Toyota, leading to a significant depreciation after one or two years. The competition is too fierce, with more reliable models in the 100,000-150,000 yuan range crowding the market, giving buyers more choices and naturally driving prices down. The small ownership volume, insufficiently dense service network, and relatively high maintenance costs, as I've consulted with some dealers, all say that inventory turnover is slow, forcing them to sell at discounts. Additionally, the rapid update and replacement of new cars accelerate technological obsolescence and depreciation. I recommend that those looking to buy used should first check the vehicle condition report and not just go for the cheapest option to avoid future troubles.

[LunaAnn]

As a long-time owner, I used the MG7 for three years before selling it. The low resale price was mainly due to numerous issues after prolonged use. The fuel consumption was relatively high, nearing 10 liters in city driving, which is not economical. The engine occasionally made strange noises, and repairs cost hundreds to thousands each time, making buyers wary and leading to aggressive price cuts. The interior materials wore out easily, making the car look old in the used market. The new car's configuration wasn't high, so the used version was even less appealing. The space was just average, and family users found it cramped. However, the driving experience was decent, with agile handling. In summary, the poor resale value is linked to accumulated minor flaws, so it's wise to budget for repairs in advance.