The decline in the market for used cars has expanded to value-oriented models, indicating that prices are expected to return to levels seen before the semiconductor supply crisis caused dramatic price increases.
According to an analysis by K-Car of the average market prices in the domestic used car sector, the prices of 10 million won models have decreased by an average of 10% amid an overall decline.
Typically, models traded in the 10 million won range are assessed as having a high cost-performance ratio. This is because they generally depreciate by more than half compared to their new car pricing, allowing consumers to enjoy good performance at lower costs. For this reason, these models have been considered resilient during general market declines due to their decreased depreciation potential.
However, this month, popular budget-friendly models priced around 10 million won, such as the Ssangyong Rexton W (-10.6%), Kia All-New Carnival (-9.7%), Hyundai Casper (-6.4%), and Kia All-New Sorento (-4.4%) are expected to see price drops compared to the previous month.
In addition, the Ssangyong Torres, launched last year (-10.0%), as well as electric vehicle models like the BMW iX (-15.0%) and Chevrolet Bolt EV (-8.9%) have also experienced price declines. Among the models surveyed, 80% saw a decrease compared to the previous month, with no models experiencing price increases.
This phenomenon can be interpreted as a continuation of the price decline that began last year. The decline initiated with premium, larger models has now extended throughout the used car market, returning prices to levels that were seen before supply shortages of automotive semiconductors two years ago. Overall, market trends show a reduction in demand due to a decrease in consumer sentiment caused by interest rate hikes and increasing burdens from installment and loan products, which have impacted prices.
Park Sang-il, head of K-Car’s PM1 team, stated, “The price decline is ongoing across the entire used car market, including both domestic and imported certified used cars,” and added, “Electric and hybrid vehicles are also showing signs of price stabilization, indicating a return to levels seen two years ago, before the used car market overheated.”
Lee Sang-jin daedusj@autodiary.kr