Encar.com has selected ‘G.R.E.A.T’ as the core keyword for the used car market in 2024 and has forecasted five major market trends.
The five key trends identified by Encar.com for the 2024 used car market are: ▲ Continuing popularity of eco-friendly vehicles (Green Accelerate), ▲ Preference for cost-effective vehicles (Reasonable Cost), ▲ Easier used car transactions (Easy Transaction), ▲ Advanced consumer-tailored services (Advanced Service), and ▲ Application of IT innovation technologies (Tech Driven). This analysis is based on big data concerning transactions and market trends from Encar.com in 2023.
Green Accelerate – Ongoing popularity of eco-friendly used cars, such as hybrids and electric vehicles
Firstly, it is expected that sales of eco-friendly used cars, focusing on electric and hybrid vehicles, will significantly increase next year compared to this year. Although gasoline and diesel vehicles still occupy a large portion of overall sales, the number of electric and hybrid vehicle sales has been steadily increasing in 2023, and as the number of available units also grows, the demand for eco-friendly used cars is likely to continue into next year.
In fact, the number of electric cars transacted through Encar between January and October 2023 increased by 45.38% compared to the same period last year, while hybrid vehicle sales also rose by 24.29% during the same timeframe. With the anticipated increase in new vehicle supply and sustained demand for eco-friendly cars, the scale of the eco-friendly used car market is predicted to expand further in the coming year.
Reasonable Cost – The trend of preferring practical/cost-effective used cars continues
Next, as the economic downturn becomes prolonged and recent new car prices rise, a consumer trend seeking used cars that can be purchased at reasonable costs is expected to persist. In particular, compact and subcompact cars, which have lower total ownership costs—including purchase price and maintenance costs—maintain a steady demand in the used car market. As high interest rates and inflation are expected to continue to affect the economy, this consumer mentality is likely to continue next year, favoring used cars at more reasonable price points over higher-priced second-hand vehicles.
Easy Transaction – Activation of simpler, trust-based used car transaction services
Used car transactions require a high level of understanding of vehicle conditions, and the processes involved are often complicated. As qualitative growth in the used car market is anticipated, a trend towards trust-based services that allow consumers to transact used cars more easily and conveniently is expected to expand further.
Encar.com is expanding its services to support the entire process of buying and selling used cars, including verification of listings on the platform and providing consultation, payments, loans, delivery, and refunds between sellers and buyers. As a result, Encar’s non-face-to-face purchase service ‘Encar Home Service’ and ‘Encar Comparison Quote’ service for selling cars are showing steady growth. The recently introduced new service ‘Encar Trusted’ allows consumers to verify listings online and provides support for inspections, guidance, payments, and aftercare at centers, receiving positive feedback from consumers.
Advanced Service – Increasing spread of more advanced, consumer-tailored services
Used cars vary significantly in condition, unlike mass-produced goods, which results in a longer search and selection process for consumers. Therefore, custom services and features, such as recommending listings based on personal preferences or budgets, are expected to be strengthened in the used car market. In particular, as the pursuit of efficiency and cost-effectiveness in the ‘second-by-second society’ becomes more pronounced, consumer preferences for such services are likely to increase.
Recently, Encar conducted a used car curation service event where the used car expert ‘Encar Codi’ recommended vehicles tailored to consumer criteria and provided ‘My Car Reports’ for the recommended vehicles, utilizing big data and AI technology. Thanks to explosive consumer participation, the event concluded early, confirming the high satisfaction levels regarding the curation service.
Tech Driven – Increasing importance of IT innovation technologies like big data and AI for improved reliability and objectivity
Finally, the capabilities of IT technologies for enhancing reliability and delivering objective information are expected to become increasingly important. The industry is actively incorporating IT technologies such as big data and AI into a variety of services, including accurate vehicle condition diagnostics and the calculation of used car prices.
Encar.com provides information about vehicle conditions, prices, and seller details based on 23 years of accumulated data assets and proprietary AI technology. This is applied to the vehicle inspection processes in diagnostics centers, various transaction services, and the development of new services.
An Encar.com representative stated, “The used car market in 2024 is expected to experience significant qualitative growth, making it a crucial period.” They added, “As the largest transaction platform in the country, Encar.com will continue to strive to create a trustworthy service environment for healthy used car transactions.”
Lee Sang-jin daedusj@autodiary.kr