Used Cars Also Emerging That Surpass New Car Prices
[Asia Economy Reporter Ki-min Lee] Due to the shortage of automotive semiconductors causing delays in vehicle deliveries, used car prices are also soaring. In some popular models, used car prices are even surpassing new car prices.
According to industry sources on the 20th, the semiconductor shortage has resulted in waiting periods of 3 to 6 months or more for popular models. For Hyundai's compact SUV Tucson gasoline and diesel Inspiration trims, it currently takes over 6 months from order to delivery. The compact sedan Avante and the small SUV Kona reportedly take about 3 months.
For Kia, the mid-size SUV Sorento gasoline and diesel models require 4 to 5 months, while hybrid models take over 6 months. Small SUV Seltos, mid-large sedan K8, and multi-purpose vehicle (MPV) Carnival also take several months from contract to delivery depending on trim and options.
As new car delivery wait times lengthen, used car prices are rising as well. According to used car trading company AJ Sellcar, the used car prices of the top 10 traded models last month increased by about 6.1% compared to April.
Recently, used cars priced higher than new cars have been appearing one after another. According to used car trading platform Encar.com, Kia's Carnival 4th generation 9-seater model has a new car price of 41.05 million KRW, but the used car price is 41.67 million KRW. The Sorento 4th generation hybrid Signature trim used car is priced at 45.5 million KRW (with additional options about 4.48 million KRW), which is 300,000 KRW more expensive than the new car.
Hyundai's Tucson hybrid Inspiration trim used car (with 1,183 km mileage) is listed at 37.5 million KRW, 2.83 million KRW higher than the new car price of 34.67 million KRW. The Avante Inspiration trim (with 1,291 km mileage) is also registered at 24.7 million KRW, 170,000 KRW higher than the new car price.
The rapid rise in used car prices is also seen overseas. In the United States, used car prices in May rose by 7.3% compared to the previous month, influencing the overall consumer price inflation.
An industry official said, "Vehicle demand has increased due to COVID-19, but the prolonged automotive semiconductor issue is causing extended delays in new car deliveries. With increased automobile demand from COVID-19 rebound consumption and more customers turning to used cars, the prices of popular used models will continue to rise."
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