Encar.com has selected ‘C.O.S.T’ as the key keywords penetrating the used car market in 2023, forecasting four major trends.
According to Encar.com’s analysis, the four key trends for the used car market in 2023 are ‘Cost-Efficiency’, ‘One-Stop Service’, ‘Sustainability’, and ‘Trust’. This analysis is based on the big data analysis of transactions and prices in 2022, as well as the internal and external market flows.
Cost-Efficiency – Strengthening the Consumption Preference for Cost-Efficient Used Cars
Next year, with concerns about economic recession continuing, a stronger consumer preference for ‘Cost-Efficient’ used cars in more reasonable price ranges is expected. Based on data from Encar.com’s analysis of the sales proportion of near-new cars, the proportion of sales of vehicles from 2020-2022 was 20.1% of total used car sales as of August 2022.
In 2022, as the wait time for new car deliveries extended, the sales of near-new used cars grew steadily as consumers turned to purchasing more recent model used cars. However, in 2023, as high-interest rates and inflation continue, it is anticipated that the purchase behavior will shift from buying high-priced near-new used cars to more reasonably-priced used cars.
One-Stop Service – Trend of Simple Transactions from Purchase to Sale on One Platform
As used car transactions require a high level of understanding of complicated procedures and vehicle conditions, the trend of transacting used cars all at once through a ‘one-stop’ platform, from purchase to sale, is expected to expand further.
With the trend of transactions through platforms becoming popular, Encar.com’s contactless purchase service ‘Encar Home Service’ and ‘Encar Comparison Estimate’ for selling cars are seeing steady growth.
Since the launch of Encar Home Service in 2019, the number of service applications has steadily increased each year for three years, and Encar Comparison Estimate also maintains consistent application numbers. Recently, Encar.com launched ‘Encar Comparison Estimate PRO’, allowing customers to sell their cars at the highest estimate without meeting dealers, enhancing the customer-centered car selling service.
Sustainability – Accelerating the Growth of Eco-Friendly Cars in the Used Car Market
Next, the expansion of the share of ‘eco-friendly cars’ in the used car market is expected to accelerate. An analysis of big data from January to October 2022 showed that the proportion of electric vehicle and hybrid car purchases was approximately 5% of total purchases. However, the share of electric vehicle purchases increased by about 75% compared to the beginning of the year, while hybrids increased by about 35%, steadily rising in market shares. As the domestic eco-friendly car market grows and various electric and hybrid new cars are continuously introduced into the new car market, the share of eco-friendly cars in next year’s used car market is expected to increase even more.
Trust – Focus on Strengthening ‘Trust’ as the Core Value of the Used Car Market
Next year, ‘Trust’ is also expected to remain as a core value in the used car market. Used car companies, including Encar, have been strengthening trust through enhanced services such as quality assurance and safety services while building infrastructure. As the used car market has rapidly evolved in recent years, and consumer interest continues to rise, ‘Trust’ is anticipated to become an even more significant keyword in the industry next year.
As the largest used car transaction platform in Korea, Encar.com is enhancing its trust system to ensure that used car transactions are conducted safely. Through the false advertisement investigation program ‘Clean Encar’, ongoing monitoring of fraudulent listings is performed, focusing on ensuring trust by verifying accident-free vehicles through ‘Encar Diagnosis’. The unique offline direct sales center, ‘Encar Advertising Support Center,’ where Encar directly verifies listings online, is also expanding nationwide to contribute to the increase in trustworthy listings. Currently, the Encar Advertising Support Center is close to surpassing 50 locations nationwide.
An Encar.com representative stated, “2023 is an important time for changes in used car consumption trends due to economic recession and the establishment of trust momentum in the domestic used car market.” They added, “Encar.com will prioritize trust as the core value and will make every effort to enhance services to foster a transparent and healthy used car transaction culture to take root.”
Lee Sang-jin daedusj@autodiary.kr