For every three new cars, 10 second-hand cars are sold! In this South American country, China cars are copying the script of Japanese cars 20 years ago

Peru's used car market is ushering in a golden window for China cars: the share of new cars exceeds that of Japan for the first time, but the stock of used cars is less than 7%-this gap is your profit.

If you are still staring at the cake of used cars in Russia and Central Asia, you may have missed out on one of the quietest but most profitable markets in 2026.

I'm not talking about Argentina-although the story of zero tariffs in Argentina is sexy. I am talking about a more stable and sustainable South American country: Peru.

In February 2026, a medium-sized piece of news exploded in Peruvian automobile circles:new car sales of China brands surpassed Japanese brands for the first time , with a market share rushing to 33.7%, leaving Toyota and Nissan behind.

But the more noteworthy figure lies behind-China brands only account for 7% of the used car stock.

33.7% new car recognition, 7% used car supply-this is nearly five times the difference.

Translated in vernacular: Peruvians already believe in China cars. They want to buy second-hand China cars, but there are few on the market. This is the time when you enter.

A real scene that happens every day

On the streets of Lima, taxi driver Carlos drove a 2008 Toyota Corolla and traveled 220,000 kilometers. He repaired cars more frequently than refueled cars.

I want to change to an SUV. The new one is too expensive and the old Japanese one is too old.

He searched NeoAuto, Peru's largest used car platform: Toyota RAV4 within five years, asking for $22,000. In the same year, there were no Haval H6 on the platform.

It's not that he doesn't want to buy it-he can't.

There are thousands of such Carlos in Peru. They have budgets between $10,000 and $15,000, want a 3-5-year-old compact SUV, and love and hate Japanese cars-love their reliability, hate their price and age.

This is an accurate customer portrait of used cars in China.

A statistic you can't believe

First look at a set of numbers and feel the fundamentals of this market:

● In 2025, Peru sold 186,000 new cars, a record high

● From January to August of the same year, the transaction volume of used cars exceeded 360,000-three times the sales of new cars

● There are 4.5 million cars in the country, with an average age of 12 years

● Sales of electric vehicles surged 86% in the first half of the year, and the turning point has been reached

What does this mean?

Peru is not a marginal market to do. Its used car trading volume is larger than the new car markets in many Middle Eastern countries. Moreover, the vehicle is seriously aging, and the need for replacement is just a necessity.

Policies are the real outlet

Anyone who does foreign trade knows that no matter how big the market is, policies that fail will be equal to zero.

The most charming thing about Peru is that its policies will not turn against each other for three to five years.

Tariffs: lowest in South America

Import tariffs on used cars are classified according to vehicle age:

within 5 years

●: Tariff approximately 9% + value-added tax 18% + emissions tax (up to 24%)

5 to 10 years

●: Tariffs rise to 23%, so there is basically no need to consider

Compare neighbors: Brazil 35%, Colombia 35%, Argentina 35%, fuel vehicles 35%. Peru's 9% is the lowest tariff on the South American continent except the Chilean Free Trade Zone.

China-Peru Free Trade Agreement: Not a window period, but an institutional dividend

Argentina's zero-tariff policy gives it five years, and everyone is scrambling for the window. Peru's China-Peru FTA is a long-term system-there is no anxiety about what to do when it expires.

Moreover, the "New Electric Vehicle Law" givesnew energy vehicles zero tariffs for five years-tariffs are directly zeroed, emission taxes are also exempted, leaving only 18% value-added tax. This is why we will see later that the profit margin of used new energy vehicles can be nearly twice that of fuel vehicles.

Three risks to know

1. Peruvian sol will depreciate. All prices are settled in U.S. dollars, and each batch of goods is locked in exchange. Don't bet on the exchange rate.

2. Don't touch brands that have not been sold locally. If a car's brand model has no new car sales record in Peru, type approval has to be started from scratch, and the time cost and certification fees are enough to eat up all profits. Choose brands such as Chang 'an, BYD, and Great Wall that have established sales networks in Peru.

3. You can't run naked after sales. The biggest pain point in Peru's used car market is trust-only 5% of transactions are completed in formal venues, and more than half of the vehicles have document problems when transferring ownership. Every certification report, every package of on-board accessories, and every after-sales commitment you provide will be converted into a real premium (data shows that cars with complete procedures receive 15% more inquiries than naked cars).

last words

Tell me something that many exporters don't understand.

The 33.7% share of China brands in new cars in Peru did not rise out of thin air. It was sold by Chang 'an for five years, BYD spent real money on after-sales sales, and Great Wall sold one by one. This cognitive foundation was laid out at a cost of tens of billions of yuan.

Now, you don't need to spend the money.

What you have to do is to deliver used cars from brands that have established a reputation in Peru at reasonable prices. What you spend is freight and tariffs, and what you earn is brand recognition dividends and supply and demand gaps.

That's what Japanese used car dealers did in the Middle East 20 years ago-they weren't making car money, but the channel difference after Toyota had proved it was reliable.

The window in Peru will not be open forever. The stock of used cars of China brands is doubling every year. When the market naturally accumulates to balance supply and demand, your profit margin will disappear.

Enter the market half a year early and earn 20% more gross profit.

Source: Xiong Yu, digital automobile export

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