Kia to Launch Certified Used Car Business from Next Month 1
Introducing Quality Grading System for Used Electric Vehicles
Battery Residual Value Assessment is Key
Only EVs with Minimum Grade 3 or Higher Sold
Buying and Selling Used Cars Online Made Easier
Kia will start its certified used car business, including electric vehicles, from the 1st of next month. The goal is to provide the market with highly reliable used cars by implementing the nation's first quality grading system for used electric vehicles.
On the 25th, Kia held a media day at the Sebitseom Floating Island Convention in Seocho-gu, Seoul, and announced the launch of its certified used car business. The core of Kia's certified used car business is to sell used electric vehicles online with the country's first quality grading system.
While Hyundai Motor Company, which started the certified used car business earlier, is expanding its business area mainly to internal combustion engine and hybrid vehicles, Kia is entering the used electric vehicle market. Although electric vehicles have grown to account for 10% of the new car sales market in Korea, their share in the used car market is at an embryonic stage of about 0.7%. Private transactions account for 64%, due to the lack of objective performance evaluations or price assessment standards.
The key to used electric vehicle transactions is the performance evaluation of the battery, which accounts for half of the vehicle price. The residual value is determined by the remaining battery life and safety. To this end, Kia inspects the four major systems of electric vehicles using a dedicated electric vehicle diagnostic tool. The high-voltage battery control system, high-voltage charging system, high-voltage distribution system, and power conversion system are checked to determine the battery grade.
Considering the battery grade and the driving range per single charge comprehensively, the final electric vehicle (EV) quality grade is assigned. After a precise performance evaluation, Kia only sells used cars online that have been rated at least grade 3 (out of 5) based on minimum performance standards.
The Kia Certified Used Car Yongin Center displays certified used EV6 (from the right in the photo), Niro EV, and Ray EV models. [Photo by Kia]
All used car transactions are conducted online. Kia is building its used car sales and purchase channels centered on e-commerce to increase customer touchpoints. On the online sales channel, customers can perform the entire process from product search and comparison to quotation, contract, payment, and delivery. Conversely, when selling a car, the process from market price inquiry, detailed quotation, to vehicle collection is completed in a one-stop manner.
A final delivery inspection staff member at the Kia Certified Used Car Yongin Center is inspecting the underside of a vehicle. [Photo by Kia]
Kia offers the 'Sell My Car' service exclusively to new car buyers. Eligible vehicles for purchase are Kia cars within 5 years of manufacture, with less than 100,000 km mileage, and no accident history. To accurately determine the purchase price, Kia has developed its own big data-based used car price assessment engine.
Additionally, the entire car selling process is 100% non-face-to-face, and the owner only needs to take and upload photos of the vehicle. When the big data-based price assessment engine derives the 'expected purchase price range,' the final price is determined by adding the photos taken by the owner and the vehicle information held by Kia.
A Kia official said, "Consumers consider the used car price they can get when selling their car when purchasing a new car," adding, "For the electrified mobility era to accelerate, it is essential to activate transactions through the formation of objective residual values for used EVs."
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