Used K8 1.25 Million Won More Expensive Than New Car... Price Reversal Deepens in Used Car Market

New Car Semiconductor Shortage Extends Delivery Wait Over 6 Months
Buyers Turn to Used Cars

'Car Camping Craze' Extends from SUV·RV to Sedans and Hybrids with Price Reversal

Hybrid Popularity Rises Amid Fuel Price Increase
Tucson Hybrid Commands 2.4 Million Won Premium

[Asia Economy Reporter Ki-min Lee] "Is this really the price of a used Avante?"

More consumers considering purchasing used cars are expressing surprise. Due to the semiconductor supply shortage, customers tired of waiting over six months for new car deliveries have turned to used cars, but many used vehicles are priced higher than new ones. The price inversion phenomenon, previously limited to popular sport utility vehicles (SUVs) and recreational vehicles (RVs), has now spread to sedans and eco-friendly vehicles.

According to used car online platforms Encar.com and K Car on the 3rd, the waiting period for popular models has extended to over 3 to 6 months, intensifying the price inversion between used and new cars. The overlapping effects of the car camping craze since last year and the semiconductor shortage are also contributing factors.

Looking at Encar.com, the 4th generation Kia Carnival 9-seater model listed in June was sold for 41.67 million KRW, 620,000 KRW higher than the new car price, but recently the same model was traded at 43.67 million KRW, 2.37 million KRW higher. The Sorento, which had a 300,000 KRW difference between used and new car prices in June, was listed last month at 43.28 million KRW, 1.54 million KRW above the new car price. The Hyundai Tucson Diesel 2.0 Inspiration (4WD) is also selling for 37.94 million KRW, 1.57 million KRW more than the new car price.

The price inversion phenomenon seen in RVs is now appearing even in popular sedans such as the Hyundai Avante, a compact sedan, and the Kia K8, a mid-large sedan. A 2021 Avante gasoline 1.6 Modern trim recently listed on Encar.com was priced at 22.8 million KRW (including options), 260,000 KRW higher than the new car price. In the case of the K8, a gasoline 2.5 Signature trim model with 5,132 km mileage was listed on K Car for 45.5 million KRW, 1.25 million KRW above the new car price.

With fuel prices soaring, hybrid models tend to carry even higher premiums. According to K Car, a used Tucson hybrid with 6,886 km mileage was priced at 37.3 million KRW, 2.4 million KRW higher than the new car price (applying eco-friendly vehicle tax and individual consumption tax at 3.5%). Professor Kim Pil-su of Daelim University’s Department of Automotive Studies explained, "The semiconductor supply shortage has extended new car delivery times, disrupting the balance between supply and demand," adding, "This phenomenon is even more severe in the United States, not just in Korea."

Currently, the Hyundai Tucson Inspiration trim, a compact SUV, requires over six months from contract to delivery. The compact sedan Avante and small SUV Kona reportedly take about four months. For Kia, mid-size SUV Sorento gasoline and diesel models require 4 to 5 months, while hybrid models require over six months. Small SUV Seltos, mid-large sedan K8, and multipurpose vehicle (MPV) Carnival also take 4 to 6 months or more from contract to delivery depending on trim and options.