First hand care is a big issue in China, where cars are often made to look new and used.
It is a particular problem for electric-car makers Teslas and other EVs.
But there are many who believe this practice is illegal and that the authorities are only enforcing existing rules.
The government has promised to crack down on the practice of second hand buying in the next few months.
Last month it announced plans to impose fines on dealers who violate this law.
But critics argue that the move will only make the problem worse, and will only push people to buy cars that are already in bad shape.
“The government is trying to stop people from buying used cars, and this is a step in that direction,” said Li Zhisheng, a senior research fellow at the Centre for the Study of Globalisation in Beijing.
Li added that the new law does not tackle the issue of second-hand buying by making it illegal for the government to regulate a dealership.
“They don’t actually have the authority to enforce the law,” he said.
“We’re not going to see a change in the use of EVs in China.”
However, the move could still have unintended consequences, and could increase the demand for the cars that were made to be second-handed.
“It may be that a new generation of electric vehicles will be introduced,” said Guo Li, a professor at the University of Hong Kong.
“If it’s not done correctly, they could become a target for fraudsters.”
The number of EVs on the road in China has increased dramatically in the last few years.
This is partly due to the introduction of the China National Electric Vehicle (CNNEV) programme in 2015, which saw the government sell a limited number of cars at a discount to those who had bought them legally.
The sale of second hands also contributed to an increase in the number of electric-vehicle registrations, which grew from a few thousand to around one million in a year.
The second hand problem is not limited to China.
In the US, some automakers have taken to using second hands to avoid paying taxes, which they would otherwise have to pay on cars that they sell as new.
In the UK, it is also common for used-car dealers to sell used cars as second hands.
“It’s more common than we think,” said Andrew Fung, senior lecturer at the British Motor Industry Association.
But Li says it’s likely that this will not change in China.
“In the near future we will see a rise in second-hands as more EVs become available, but it’s too early to say whether that will happen at the current rate,” he added.
“Even if it does happen, it will be very hard to stop this because we don’t know what incentives will be offered to sellers to stop the practice.”
Follow Al Jazeera’s coverage of the Chinese car industry.