Encar.com has announced the used car prices for February 2023. The revealed prices are based on Encar.com’s big data, analyzing the used car prices of popular 2020 models from domestic automakers like Hyundai, Kia, Renault Korea Automotive, and SsangYong Motors, as well as imported brands like Mercedes-Benz, BMW, and Audi. The analysis was conducted on vehicles with a mileage of 60,000 km and that have never been in an accident.
After a significant increase in used car prices due to inflation last year, the prices began to decline gradually since the end of last year, moving towards stabilization at levels seen in previous years. In February, the average prices of representative models for both domestic and imported vehicles fell by 6.66% compared to the previous month, highlighting the advantages of buying used cars, which are expected to increase demand.
The average price of domestic cars dropped by 5.74% compared to the previous month. As the wait for new car deliveries lengthens and installment rates remain high, the demand for new cars has weakened. This has led automakers to offer discounts, low-interest financing, or interest-free programs since the beginning of the year to attract customers.
The Hyundai Palisade 2.2 2WD Prestige saw a price drop of 6.27%, while the Tucson (NX4) 1.6 Turbo 2WD Inspiration dropped by 6.21%. The New Santa Fe 2.2 2WD Prestige also fell by 4.88% compared to the previous month. In contrast, the consistently popular New Grandeur IG 2.5 Exclusive saw a smaller decrease of 1.83%.
The Kia K7 Premier 2.5 GDI Noblesse decreased by 8.57%, and the Sportage The Bold Diesel 2.0 2WD Prestige dropped by 4.54%. Models that were promoted at the beginning of the year, such as the Carnival and Morning, also saw declines; the Morning Urban Prestige dropped by 7.63%, and the New Carnival 9-seater Prestige decreased by 6.10%.
Additionally, the Renault New SM6 1.8 TCe Premier fell by 8.61%, the Chevrolet Traverse by 6.69%, and the Trailblazer 1.3 Turbo 2WD RS by 5.50%. The SsangYong Very New Tivoli Gasoline 1.5 2WD V5 also decreased by 7.24%.
Imported vehicles also experienced an average price drop of 7.73% compared to the previous month. The Cayenne (PO536) 3.0 Coupe, which was on the rise, saw an 8.28% decrease, while the Mercedes-Benz E-Class W213 E250 Avantgarde, a model with aggressive discount promotions, dropped by 9.37%. The BMW 5 Series (G30) 520i M Sport fell by 9.49%.
Other notable declines include the imported hybrid Lexus ES300h 7th generation Executive at 8.02% and the Tesla Model 3 Long Range at 7.72%. Key SUV models such as the 2nd generation Volkswagen Tiguan 2.0 TDI Prestige, the Mini Cooper base 3rd generation, and the 6th generation Ford Explorer 2.3 Limited 4WD also showed downward trends.
As overall used car prices decrease, increasing price attractiveness is easing the burden of initial purchasing costs, showing signs of recovery in used car buyer sentiment. In fact, inquiries for average daily purchases on Encar.com during the last week of December compared to late January and early February showed a 44% increase. The number of vehicles inquired about also increased by 39% during the same period.
An Encar.com representative stated, “With the rapid price increases stabilizing over time, the previously suppressed purchasing sentiment is reviving, evident in the growing number of inquiries from consumers who postponed their purchases.” They added, “With the peak season for used cars approaching in March, we anticipate that the transactions will become active again as demand increases for those considering used cars.”
Lee Sang-jin daedusj@autodiary.kr