The Core of This Year's Used Car Market Predicted by Encar: 'Eco-Friendly and Cost-Effective'

Increase in Electric and Hybrid Vehicle Transactions Expected
Steady Demand for Compact and Subcompact Cars Maintained

Encar.com, the largest car trading platform in Korea, forecasted that eco-friendliness and "cost-effectiveness (price-to-performance ratio)" will be key factors in the used car market this year.

On the 2nd, Encar.com selected five core items for this year's used car market based on last year's transaction and price data as well as internal and external market trends. The first item highlighted was the "continued popularity of eco-friendly cars." It predicted that sales of eco-friendly used cars, centered on electric and hybrid vehicles, will increase further compared to last year.

In fact, from January to October last year, the number of electric and hybrid cars traded through Encar increased by 45.4% and 24.3%, respectively, compared to the same period the previous year. Encar.com expects the eco-friendly used car market to expand further next year as new car supply increases and demand for eco-friendly cars continues.

"Preference for practical cost-effective cars" was also identified as a key point. With the prolonged economic downturn and recent rise in new car prices, it is analyzed that the consumer trend of seeking used cars that can be purchased at reasonable costs will continue. In particular, compact cars and subcompact cars with low total cost of ownership (TCO), including purchase price and maintenance costs, appear to maintain steady demand in the used car market.

The evolution of used car transactions was also seen as an important aspect. It is expected that more convenient and reliable used car trading services will become active. Encar.com has already expanded its services to verify listings traded on the platform directly and support the entire process of used car sales and purchases, including consultation, payment, loans, delivery, and refunds, acting as an intermediary between sellers and buyers. Accordingly, Encar’s non-face-to-face purchase service ‘Encar Home Service’ and car selling service ‘Encar Price Comparison’ are steadily growing. The recently launched new service ‘Encar Midgo’ supports checking and guiding listings confirmed online at centers, payment, and after-sales management.

Additionally, consumer-tailored services and the increasing importance of innovative technologies such as big data and artificial intelligence (AI) were also considered significant. A representative from Encar.com said, "This year’s used car market is an important period expected to see qualitative growth more than ever," adding, "Encar.com will continue to strive to create a trustworthy service environment so that healthy used car transactions can take place as the largest trading platform in Korea."