# depreciation

China’s EV Financing War Ripples Through Used‑Car Market, Pummelling Resale Values and Dealers’ Margins

Tesla’s January 2026 push of 5‑year 0% and 7‑year low‑interest purchase plans has spurred competitors to extend similar financing, making new EV purchases cheaper per month and prompting buyers to favour new cars. That shift has weakened demand for secondhand electric cars, forced dealers to cut prices or offer short-term interest‑free loans, and highlighted structural risks to EV residual values driven by rapid technological obsolescence and battery concerns.