Best Time to Buy an SUV... Up to 5.4% Price Drop Expected Ahead of May Peak Season

K Car April Used Car Price Outlook

There is a forecast that the prices of used Sports Utility Vehicles (SUVs) could drop by more than 5% this month. Since SUV demand is expected to surge from May due to spring outings and other activities, it is analyzed that now is the right time to purchase.

Directly operated used car platform K Car analyzed the average prices of about 740 models released within the last 12 years circulating in the domestic used car market and predicted on the 2nd that the prices of domestic mid-size SUVs will fall by an average of 0.6% in April.

K Car explained, "The first quarter is a period when many consumers look for small cars due to the new school term and employment, causing prices of compact cars to rise. However, from May onwards, SUV demand increases due to outings and car camping. Ahead of the upcoming SUV peak season, April prices seem to be taking a brief pause."

It is expected that mid-size SUV representative models such as Santa Fe and Sorento, as well as large SUVs like Palisade, will mainly show a downward trend. For example, the Hyundai Santa Fe DM is expected to drop by 5.4% compared to the previous month, priced at 9.22 million KRW. Other models are also expected to decline, including ▲Hyundai Santa Fe The Prime at 15.02 million KRW (-3.1%), ▲Hyundai Palisade at 28.63 million KRW (-2.4%), ▲Kia The New Sportage R at 8.53 million KRW (-2.3%), and ▲Kia The New Sorento (-2.1%).

On the other hand, the popularity of compact cars is expected to continue through April, with prices rising by 0.8% compared to the previous month. The Kia The New Ray (new model) and The New Ray (old model) are expected to increase by 1.7% and 0.6%, respectively, indicating growing demand for compact cars.

For imported cars, the prices of BMW and Mercedes-Benz are expected to diverge. BMW 5 Series (G30) and 5 Series (F10) are predicted to rise by 3.2% and 2.1%, respectively, while Mercedes-Benz E-Class W213 and E-Class W212 are expected to fall by 1.3% and 2.1%, respectively. This is interpreted as reflecting BMW’s stronger sales performance in the new car market earlier this year, which also influenced used car prices.

Jo Eun-hyung, an analyst from K Car’s PM team, explained, “If you are considering purchasing an SUV, you should buy before May when prices rebound to get a variety of options at reasonable prices.”