The automotive industry is entering the year-end season with massive discounts.
To clear out inventory and prevent customer attrition, automakers have even introduced re-purchase discount cards. In the used car market, customers are increasingly opting for cost-effective used cars over nearly new ones.
Hyundai Motor, the leading domestic brand, is facing a stock surplus of Grandeur models. Depending on the month of production, customers can receive discounts of up to 5.2 million won on the Grandeur and 5.3 million won on the Grandeur Hybrid. It’s not just the Grandeur; substantial discounts also apply to SUVs and electric vehicles. For instance, the popular small SUV Kona can see a deduction of 2.55 million won, while the Kona Hybrid can enjoy 3.15 million won off. When purchasing the Ioniq 5 and Ioniq 6, discounts can reach up to 6.3 million won.
The imported car market is also experiencing a chill. BMW sold 62,514 units by October this year, down 3.1% from last year’s 64,504 units. To make up for this decline, BMW has implemented a Change-Up program starting this month. This program offers existing BMW owners a discount of up to 7% on the purchase of a new BMW. Additionally, utilizing BMW Financial Services can provide 1 million won in support, and existing 5 Series owners buying the new 8th generation 5 Series can enjoy an additional discount of up to 1 million won.
The used car market is also shifting in a similar fashion to the new car market. According to K Car, “Used car models priced around 10 million won are maintaining price strength.” The representative models include the Hyundai Sonata New Rise and the 3rd generation All-New Sorento. These vehicles in the price range of mid-10 million won are increasingly sought after by budget-conscious consumers.
Conversely, models that have enjoyed great popularity in the used car market, such as the Grandeur (GN7) and the 4th generation Carnival, are seeing declining interest, with their respective prices recorded at 38.66 million won (down from 39.94 million won last month) and 34.87 million won (down from 36.16 million won last month), reflecting decreases of 3.2% and 3.6% month-over-month.
Lee Sang-jin daedusj@autodiary.kr