K Car "Used Car Prices in the 10 Million KRW Range Expected to Drop by 10%"

[Asia Economy Reporter Hyunseok Yoo] The decline in used car prices is expanding to value-for-money models, and market prices are expected to return to previous levels when prices soared due to the semiconductor supply shortage.

On the 4th, K Car, the largest direct-operated used car platform company in Korea, analyzed the average prices of about 740 models released within 12 years circulating in the domestic used car market and revealed that amid the overall decline, prices of models in the 10 million KRW range fell by an average of 10% compared to the previous month.

Typically, models traded in the 10 million KRW range in the used car market are considered value-for-money products, meaning they offer a high price-to-performance ratio. Usually, depreciation exceeds half of the new car’s original price, allowing consumers to enjoy good performance at a lower cost. For this reason, these models have been regarded as well-defended against price drops even during overall downturns, as there is little room for further depreciation.

However, this month, prices of popular value-for-money models in the 10 million KRW range such as ▲ Ssangyong Rexton W (-10.6%) ▲ Kia All New Carnival (-9.7%) ▲ Hyundai Casper (-6.4%) ▲ Kia All New Sorento (-4.4%) are all expected to decline compared to the previous month.

In addition, the Ssangyong Torres (-10.0%), which was first released last year, as well as electric vehicle models like the BMW iX (-15.0%) and Chevrolet Bolt EV (-8.9%), also saw price drops. 80% of all models surveyed showed a decline compared to the previous month, and there were no models with price increases.

This trend is interpreted as a continuation of the price decline that began last year. The downward trend, which started with luxury and large models, has now spread beyond nearly new vehicles to the entire used car market, bringing prices back to levels seen two years ago before the vehicle semiconductor supply shortage. Overall, the market has been affected by reduced demand due to weakened consumer sentiment from interest rate hikes and increased burdens from installment and loan products.

Park Sang-il, PM1 Team Leader at K Car, said, “Prices are falling across the board for used cars, including domestic and certified imported brands. Electric and hybrid vehicles are also showing signs of price stabilization, returning to levels seen two years ago before the used car price surge.”

Based on 23 years of accumulated experience in the used car industry, K Car has established a systematic and accurate price analysis and forecasting system, which it uses for purchasing and sales. As a leading company in the increasingly competitive used car market, K Car plans to lead the market by sharing price information.