In the current environment of poor economic conditions and challenging job prospects, young people in Mainland China are enthusiastically buying “unfinished cars” from bankrupt brands such as Weima and Nezha at low prices. Many people question where they can find replacement parts for these cars since the factories have already closed. Some experts criticize the media for influencing Mainland Chinese people to buy these “unfinished cars.”
On November 3, several Mainland Chinese media outlets reported on consumers who purchased second-hand cars like Extreme Yue 07 and HighPhi X, highlighting that these consumers only focus on the spec sheet featuring components like Ningde Times lithium batteries, Qualcomm 8295 chips, double wishbone suspension, all at a 30% discount, believing that “Ningde Times batteries will not fail.”
To these consumers, even if the car manufacturer goes bankrupt, servers go offline, and infotainment systems become non-functional, as long as the battery is intact and the suspension works fine, it is sufficient for them. There is a popular saying among bargain hunters: “Car manufacturers are just assemblers; what I really need is a spec sheet.”
However, buying these “unfinished cars” comes with risks. A user who recently purchased an unfinished car expressed concerns about the potential risks. Due to the brand closure, future maintenance and parts supply could pose challenges. In case of any issues with the vehicle, repair costs may significantly increase, and finding replacement parts could become an embarrassing situation. Additionally, with the advancement of smart cars, infotainment systems, and intelligent driving assistance features are becoming crucial components of vehicles. Missing these functions could affect the long-term user experience. Furthermore, popular car models on the market today could also potentially end up as “unfinished cars” in the future for various reasons.
Despite the risks, the user mentioned, “I cannot consider such huge risks; I need a car now, and my budget is limited to 100,000.”
These discussions on Mainland Chinese social media have sparked a debate among industry professionals.
A blogger certified as a “Sales Director in the Import-Export Trade Industry” posted on Zhihu, expressing that unfinished electric cars are not even worth as much as second-hand electric cars. They further emphasized that unfinished electric cars are not “discounted” products.
The article mentioned conversations with a friend in Jiaxing Tongxiang (with vested interests) who stated that the unfinished cars of a bankrupt car manufacturer were not being bought, but there were many people coming to the warehouse with cameras for equipment shots.
The article raised questions about whether the media was trying to “encourage young people to take over unfinished cars? Now, it seems that unfinished real estate is also finding a way to sell—can’t afford a house, buy an unfinished one?” Furthermore, it was pointed out that without spare parts, dismantling might not be feasible (due to low inventory), all components including power batteries are not under warranty coverage, insurance companies may be reluctant to cover such items, and relying on the belief that “I trust Ningde Times batteries won’t fail” for sales is reckless. “If proper post-sales service cannot be obtained, the sustainability of the entire electric vehicle’s core powertrain system will be greatly compromised.”
On Zhihu, an influential figure in the field of economics and management, Ningyi, posted stating that after a car manufacturer goes bankrupt, the models of unfinished cars fall into the category of niche models. One major issue faced by niche models is the difficulty and high costs of purchasing spare parts. Since there are limited options available in the market, those needing to purchase these components essentially have no choice but to buy at inflated prices.
Ningyi illustrated that in cases where a product is priced at 1,000 yuan, and a critical component has only one or two sellers in the market, the seller may set a price as high as 200 or even 300 yuan, though the cost price is only 5 yuan. Such necessities do not adhere to the laws of supply and demand; buyers are willing to pay a premium as long as it falls within their affordability range.
Ningyi emphasized in the article that car safety is paramount, even established automakers like Toyota cannot guarantee a flawless product. Should a quality issue arise due to design flaws in a model sold for several years, a widespread recall would be initiated to rectify the defect and ensure road safety. This policy is also applicable in the case of new energy vehicles like Tesla, as demonstrated by a recall in 2024 for certain imported Model 3, Model S, and Model X electric vehicles produced between January 12, 2019, and April 26, 2024. This reflects that despite a vehicle’s age, safety concerns may warrant recalls.
“Furthermore, there are concerns regarding car insurance. Insurance companies have blacklisted some unfinished car models, resulting in exorbitant premiums, and in some areas, outright refusal to insure certain brands of new energy vehicles. Some prominent figures admit to never purchasing commercial insurance. Even if one has insurance, they must remain vigilant,” Ningyi said.